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Introduction
Used Car loans form a priority sector in the whole bank loan segment. Scores of Indians choose to buy pre-owned cars for their affordability. Pre-owned cars also make a good option for people looking to buy a second car for their homes.
Axis Bank offers Used Car loans to purchase pre-owned cars. Loan amounts start from Rs.1 Lakh and you can get up to 85% of the car value. The bank promises quick processing of your loan application. Existing customers are also given additional benefits.
About Axis Bank Used Car Loan
- Features of Axis Bank Used Car Loans
- Who all are eligible to apply for Axis Bank Used Car Loans?
- What are the documents required to apply for Axis Bank Used Car Loans?
- Interest Rates and Service Charges associated with Axis Bank Used Car Loans:
- Factors affecting your Axis Bank Used Car Loan Eligibility
- Axis Bank Used Car Loans FAQs:
Features of Axis Bank Used Car Loans
- Higher Loan Amount: Axis Bank used car loans start from Rs.1 lakh and applicants can get up to 85% of the car value as loan.
- Attractive Interest Rates: Axis Bank used car loans interest rates start from as low as 15%.
- Complete Transfer Support: Axis Bank has tie-ups with dealers pan India. This helps customers get complete support with the transfer of ownership.
- Comfortable Repayment Tenure: The loan can be repaid in monthly EMIs for up to 5 years.
- Easy EMI Calculation with Car Loan EMI Calculator: The Axis Bank website has an EMI calculator. This calculator allows you to calculate your monthly outflow based on the loan amount and the expected interest rate.
- Special Benefits for priority banking, Privy Banking and Wealth Banking customers.
| Loan Amount | Eligible Entities | Age Eligibility | Interest Rates | Repayment Tenure | |
|---|---|---|---|---|---|
| Up to 85% of the car value | Salaried & Self-Employed Individuals & Businesses | Salaried Individuals – 21 years – 70 years | Self-Employed Individuals – 18 years – 75 years | Starting from 15% | Maximum 60 months |
Who all are eligible to apply for Axis Bank Used Car Loans?
Axis Bank Used Car Loans is available for –
- Salaried Individuals
- Self-Employed Individuals
- Businesses
Salaried individuals who are eligible for a Pre-Owned Car Loan
- Minimum 21 years of age
- Maximum 70 years of age at maturity (conditions apply)
- Minimum Net Annual Salary of Rs. 2,40,000 p.a. for all approved car models
- Income eligibility based on latest salary slip and Form 16
- Minimum 1 year of continuous employment
Self-employed individuals who are eligible for a Pre-Owned Car Loan
- Minimum 18 years of age
- Maximum 75 years of age at loan maturity
- Minimum Net Annual Business income of Rs. 1,80,000 p.a. for selected models and Rs. 2,00,000 p.a. for others.
- Income eligibility based on latest Income Tax Returns
- Minimum 3 years of employment in the same line of business
Businesses that are eligible for a Pre-Owned Car Loan
- Minimum Net Annual Business income or Rs. 1,80,000 p.a. for selected models and Rs. 2,00,000 p.a. for others
- Income eligibility based on latest 2 years Income Tax Returns and audited financials of 2 years along with computation of income
- Minimum 3 years of employment in the same line of business
What are the documents required to apply for Axis Bank Used Car Loans?
The common documents required to apply for the loan are:
- Application Form
- Registration Certificate of Vehicle.
- KYC Documents
KYC Documents to be submitted:
Documents Required | Individual Cases | Non-Individual Cases | ||
Salaried | Self Employed | Partnership Firm/ Trust/ Society | Private Limited/ Limited Companies | |
Office / Business Proof | NA | Telephone Bill/ Electricity Bill/ Shop & Establishment act Certificate/ SSI or MSME Registration Certificate/ Sales Tax or VAT Certificate/ Current A/c Statement/ Registered Lease with other Utility Bills | NA | |
Income Proof | Latest 2 Salary Slips & Latest Form 16 | Latest ITR | Audited Balance Sheet/ P&L Account & ITR for last 2 years | |
Bank Statement | Latest 3 months Bank Statement | Latest 3 months Bank Statement | ||
Age Proof | PAN / Driving Licence/ Passport/ Birth Certificate | NA | ||
Sign Verification Proof | PAN / Passport/ Bankers Verification | NA | ||
Employment / Business Continuity Proof | Copy of Appointment Letter/ Date of Joining on Salary Slip/ ITR of Form 16/ Work Experience Certificate/ Relieving letter | Shop & Establishment act Certificate/ SSI or MSME Registration Certificate/ Sales Tax or VAT Certificate/ Current A/c Statement | Shop & Establishment act Certificate/ SSI or MSME Registration Certificate/ Sales Tax or VAT Certificate/ Current A/c Statement | |
Additional Documents | NA | PAN Cards/ Authority Letter by all partners & Board Resolution for Trust / Society | List of Directors & Shareholding Patter/ PAN Card/ Board Resolution/ Certificate of Commencement of Business for Ltd. Co. | |
Interest Rates and Service Charges associated with Axis Bank Used Car Loans:
| Loan Tenure | Effective ROI | Processing Fee | Documentation Charges |
|---|---|---|---|
| Up to 36 months | 14.80%-16.80% | Rs. 6000 or 1% of loan amount, whichever is lower | Rs. 500 |
| More than 36 months | 14.80%-16.80% | Rs. 6000 or 1% of loan amount, whichever is lower | Rs 500 |
Service Charges:
| Sr. no | Type | Charges |
|---|---|---|
1 | Cheque Bounce / Instrument Return Charges | Rs. 500 per instance |
2 | Cheque / Instrument Swap Charges | Rs. 500 per instance |
3 | Duplicate Statement Issuance Charges | Rs. 500 per instance |
4 | Duplicate Repayment Schedule Issuance Charges | Rs. 500 per instance |
5 | Duplicate No Dues Certificate / NOC | Rs. 500 per instance |
6 | Penal Interest | 2% per month |
7 | Loan cancellation / Re-booking | Rs. 2,500/ instance |
8 | Foreclosure Charges | 5% of the Principal Outstanding |
9 | Part Payment charges | 5% of the Part Payment amount |
10 | Stamp Duty | At actuals |
11 | Issuance of Credit Report | Rs. 50 per instance |
12 | Documentation Charge | Rs 500/ Instance |
13 | Registration Certification Collection Charge | Rs 200/ Instance |
Factors affecting your Axis Bank Used Car Loan Eligibility
There are variously affecting your car loan eligibility. Your eligibility and repayment capacity also affect your loan repayment tenure and the final interest rate. Pay attention to the following points:
Credit score – Your Credit Score is important for the bank to know your credibility. Having a healthy credit score assures the bank of your creditworthiness and hence gives a higher chance of loan approval.
Value of the pre-owned car you want to purchase – Though the bank offers a loan amount starting from Rs.1 lakh, the valuation of the pre-owned car is also taken into account. The valuation is done by an authorized surveyor and the final loan amount is decided based on this amount.
Age – The minimum age to avail of a car loan is 21. The more the number of working years left, the more time you have to repay your loan. So, the younger you are, the higher the chance of loan approval.
Income – Axis Bank offers up to 85% loan amount on the value of the pre-owned car you want to purchase. However, your income level affects your repayment capability. Hence, banks set a loan threshold for the amount that can be lent to you based on your gross monthly income.
Existing Liabilities – Banks take your existing debts, loans, credit card bills, and other liabilities into account while calculating your loan eligibility. Having low income but high liabilities can affect your loan amount or the tenure of loan repayment. It is advised to repay all your debts on time and maintain a healthy repayment history.
Existing relationship with the bank – Existing customers of the bank are always given preference. A healthy relationship with the bank in the form of savings account, salary account, credit card account, and other types of accounts increases your chance of landing a higher loan amount and better interest rates.
Co-applicants – Adding co-applicants to the application gives you a benefit of combined income. The car need not be purchased on their name, but adding an earning member of the family increases the available income for repayment, increasing your eligibility for a higher loan amount and better interest rate.
Axis Bank Used Car Loans FAQs:
1. How to use the Car Loan EMI Calculator?
The use has to be a simple key in the required loan amount, repayment tenure and the expected interest rate. The calculator automatically gives the monthly EMI amount for the selected repayment tenure. It also shows the total principal and interest amount repaid.
2. What are the options available to make loan payments?
In the current digital era, all payments can be made digitally. Loan EMIs are generally assigned to a standing instruction or an ECS from your bank account.
3. Can I foreclose my used car loan?
Yes, you can foreclose your used car loan account. A 5% Foreclosure Charges on the Principal outstanding will be charged. You can also choose to make part prepayments to the loan amount. You can pay whenever you come across a bonus or incentive, thus reducing the interest burden on the loan.
4. What are the processing fees for the loan?
Axis Bank Used Car Loans have a processing fee of Rs.6000 or 1% of the loan amount, whichever is lower.
5. What is the age criteria to apply for Axis Bank Used Car Loans?
The minimum age is 20 for salaried individuals and 18 for salaried professionals. The maximum age limit is 70 for salaried individuals and 75 for salaried professionals.
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