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Oriental Bank of Commerce Two-Wheeler Loan
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The Oriental Bank of Commerce is a reputable public sector bank in India based out of Lahore( which was then a part of British India and now Pakistan). On April 15th, 1980, it became a nationalized bank. It took possession of two banks, Punjab Cooperative Bank and Bari Doab Bank, but this possession didn't result in the formation of new branches. The Global Trust Bank was once a premier private bank in India, but financial discrepancies led to its moratorium which was imposed on the bank by the RBI. Then the bank was acquired by OBC. This acquisition increased the total number of OBC branches by 103, crossing the 1000 mark. Subsequently, the OBC became one of the largest public-sector banks in India.

Why is Two-Wheeler Loan a Necessity Today?

Two-wheelers are easy for commute and affordable to maintain for an enormous amount of Indian population due to its compatibility with deranged roads and traffic. Banks like OBC understood the needs of people and came with two-wheeler loans as the solution to assist those who can't afford to buy them. A two-wheeler loan is the requirement nowadays for managing your finances intelligently.

Features of Oriental Bank of Commerce Two-Wheeler Loan

  • Purpose - This loan is availed for the purchase of new two-wheeler which can't be used commercially.

  • Income Criteria - The net salary must be a minimum of Rs. 10, 000 on a monthly basis.

  • Upper Limit of Loan - The maximum amount provided for buying the two-wheeler is Rs. 10,00, 000.

  • Security - Hypothecation of the new two-wheeler is with the bank. The hypothecation fee will be registered in the RTO books.

  • Collateral Security - If the gross monthly income of the individual is lesser than Rs. 30,000, then one personal guarantee is required by the bank to keep as collateral security.

  • Components of Finance - It consists of showroom price, the one-time road tax, the registration cost, and the first year's insurance cost.

Loan Repayment Tenure

1. OBC bank offers resilient loan repayment tenures for up to 84 months.

2. The 84 EMIs will include the Principal Amount + Interest rate

3. For salaried employees who do not get pensions - up to superannuation or up to the age of 60, depends on whichever is earlier.

4. For salaried employees who do not get the pension - maximum limit of age to apply for the loan is up to 65 years, provided they have a regular source of income.

5. For business entities - There is no limitation on age.

6. Margin - 15% of the on-road cost of the vehicle.

Eligibility Criteria

1. For salaried individuals - the applicant must have a minimum of one year experience. The current, as well as the previous employment experience, can be amalgamated and taken into consideration to meet the criteria of one-year service experience.

2. Professionals such as doctors are eligible to apply.

3. Business Entities - the entity must be an established one for at least two years.

4. Agriculturist - the eligibility criteria will be determined from their landholding and their repaying capacity.

5. Non-resident Indians (NRIs) - Can only apply jointly with an Indian citizen (such as a close relative or spouse)

6. Co-Applicants - The following members can be co-borrowers for the Vehicle Loan: spouse, mother, father, son, brother, daughter-in-law and unmarried daughter.

Eligibility of Loan Amount

For salaried employees and pensioners:

The maximum loan amount that the bank provides will be equivalent to 30 months of the gross salary or the pension, which means that the net take home salary should fall within the 30% - 40% annual income slab.

The net take home salary = gross annual income - deductions (Income Tax deduction, and the proposed loan installment)

Business Entities:

Income generation to justify the repayment of the loan.

For Co-Applicants:

The income of the co-borrower will be taken into consideration for  eligibility.

Documentation Required for OBC

1. The authenticity of the invoice issued by the dealer

2. Filled loan application form

3. Passport size photographs for the Applicant/ Co-Applicant / Guarantor

4. ID Proof

5. Residential Proof

6. Age Proof Document

7. Proof of Income:

  • Salaried Employee - ITR or Salary certificate given by the respective employer

  • Agriculturist - A document showing the landholding size and the cropping pattern or any other proof of income

  • Other documents - The latest three years of ITR and computation sheet / bank account reports,

  • income proof of the spouse to determine the loan payment capacity in case of co-applicant.

  • Additional documents can be requested on a case to case basis.

Comparing Two Wheeler Loans from Different Banks

When you have a whole bag of goodies while deciding from whom you would take a two-wheeler loan depending on the terms and conditions, OBC deserves your attention for the following reasons.

1. A two-wheeler loan from OBC does not restrict the loan applicants for the choice of the vehicle model. The applicant can choose any new two-wheeler of their choice and use the loan from OBC to buy it.

2. The OBC bank caters even to those sections of customers who are generally ignored by other banks usually, such as, agriculturists and pensioners. With these kinds of applicants having no stable income, the bank assesses their payment capacity based on the parameters related to their profession such as the land holding size in case of a farmer.

3. Many banks incur additional costs for documentation, prepayment penalty. However, OBC does not levy any fee for any such process which will add to your savings significantly.

4. The loan tenure for the repayment is one of the most prolonged periods which goes up to 84 months. It decreases the monthly installment amount to a great extent without hampering the lifestyle. Along with that, the interest rates that are offered at these different loan tenures are also meager as compared to other banks.

5. If you want a two-wheeler loan along with a home loan, and you are applying for both at OBC, you will get a low rate of interest on a secured basis.

6. The documents required for the application of the loan are very less and hassle-free as compared to other banks.

When you compare the different facets of the OBC Vehicle Loan with other banks, the package offered will be lucrative regarding your monthly expenses and savings.


Q1.Can I avail the OBC Vehicle Loan for the purchase of a second-hand two-wheeler?

No. The OBC two-wheeler loan is only applicable for the purchase of a new two-wheeler.