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Indian Overseas Bank Two-Wheeler Loan
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The Indian Overseas Bank is a premier bank headquartered in Chennai, Tamil Nadu. The bank has an extensive network including 3500 domestic bank branches across India, with 1150 offices in Tamil Nadu only. The software utilized by the bank for facilitating online banking facility to customers has been developed by the in-house IT team which is ISO certified. The bank has achieved 100% CBS and networking status for its branches. It has a network of approximately 3300 ATMs in India. Apart from the domestic branches, the IOB also has its subsidiaries in Hong Kong, Bangkok, Singapore, Colombo, and Seoul, and representative offices in Vietnam, Guangzhou, and Dubai.

Features of Indian Overseas Bank Two-Wheeler Loan

Loan Sum:

The bank will provide the loan at 90% of the cost of vehicle or 10 times the gross monthly income, whichever the option is lower.

Interest Rate for the Two-Wheeler Loan or Pushpaka Loan:

The bike loans are available at floating interest rates. The bank charges a  rate of 10.4% annually.

Repayment policy:

IOB offers versatile repayment options that do not impact the budget of the borrower. The repayment does not become a burden on the borrower by negatively affecting their lifestyle.

The borrower can pay the two-wheeler loan in 72 EMIs.


1. The two-wheeler should be insured for the entire cost with the bank clause.

2. The bank lien on the two-wheeler should be entered in the R.C. book.

3. Hypothecation of the two-wheeler purchased

Eligibility Criteria

Employment Criteria for Indian Residents:

  • Either the applicant should be employed in a government office.

  • Being a salaried employee, the applicant must be working in a reputed private organization.

  • The applicant should be a self–employed individual.

The borrower can apply for the loan even under the organization's name.

For Non-Resident Indians (NRIs), the applicant must obtain a suitable guarantee from a resident Indian who is acceptable by the bank.

Eligibility Criteria for Income:

1. The take-home salary of the applicant must be 50% of the gross wage after insurance and PF deductions.

2. The monthly income of the applicant, including the spouse's income and any other income in-house, has to be at least Rs. 5000 per month for the purchase of a two-wheeler.

Documentation Required for IOB Bike Loan:

1.Salary Certificate or Slip

2.Income Proof – Income Tax Return

3.Quotation or Proforma Invoice of your new two-wheeler

Comparison of IOB Two Wheeler Loan (Pushpaka) with Other Banks:

It is well known that public sector banks often offer loans at a significantly lesser rate of interest than the private banks which is same in the case of two Wheeler Loan provided by the Indian Overseas Bank. The bank gives the loan at a competitive rate of 10.40% interest. The Indian Overseas Bank also does not have any limitations for make/model purchase of two-wheelers. The borrower can use the Two Wheeler Pushpaka Loan for the purchase of any two-wheeler of choice and accordingly can get the credit.

There are banks which restrict the choice of two-wheelers in two-wheeler loan for borrowers. For example, a two-wheeler loan from ICICI bank can only be used for Harley Davidson models. Another lucrative feature of the IOB's two-wheeler loan is that the credit is accessible even to the public of rural areas. This approach is not available among many leading banks of India. For applicants from a rural area, the processing fee is also less compared to other regions of India. So the IOB two-wheeler loan (Pushpaka) is advantageous in many aspects, making it a desirable choice for the public.


Q1. Who can all apply for the IOB Two-Wheeler or Pushpaka Loan?

Both the Indian as well as non-Indian residents can apply for the two-wheeler Loan (Pushpaka) after meeting the eligibility and documentation criteria.

Q2. Are there any fees for the processing of the IOB two-wheeler loan for rural and urban areas?

Yes. For a loan amount up to Rs. 2, 00, 000, the processing fee in rural areas is Rs. 134 and for urban areas it is Rs. 168.