Indian Bank Car Loan Interest Rates

Factors Affecting your Indian Bank Car Loan Interest Rates

Car loan interest rates are not the same for every applicant. It differs based on a few factors like your age, salary, employer, credit score and so on. Here is a look at the most important factors that affect your Car Loan interest rates at Indian Bank;

Credit Score

Your credit score is an important criterion to determine your car loan interest rate. A good credit score means that you are good with your repayment history. It ensures a higher loan amount and lower interest rate. Banks consider a higher credit score as an indication of your creditworthiness. This highly impacts your loan amount and interest rate eligibility.

Income

A higher income ensures timely repayment of the loan. Banks give better loan terms to individuals with higher income and low credit utilisation ratios. Banks also prefer salaried individuals as against self-employed individuals because salary ensures regular cash flow into your account. However, self-employed professionals have an advantage over salaried individuals as they earn higher than salaried individuals.

Age

The applicant’s age plays an important role in the car loan application process. Younger the applicant, more the number of earning years he has to repay the loan. Car loans can be availed by individuals who are 21 years of age. The loan amount as well as the interest rates are very favourable for applicants of younger age as compared to older applicants.

Employment type & Employer

Employment with a reputable organisation will definitely get you a good deal on your Indian Bank Car Loan interest rates. Many banks have a list of accredited employers and respectable entities that they refer to when approving the loan. Jobs in these companies guarantee work security and income flow to the bankers. You are also bound to receive an offering of higher loan amounts and lower interest rates.

Vehicle Model and Age

In the case of a car loan, the vehicle shall serve as collateral. In the event that the EMIs are not received, the bank or the NBFC will seize the vehicle. The type and age of the vehicle are then taken into account when setting interest rates. New vehicles from a reputable maker have lower interest rates relative to older ones. Used vehicles often come with high interest rates, since the value of the vehicle depreciates with age.

Relationship with the lender

Customers of the bank with a long standing relationship are often granted priority, depending on the fact that their credit background is easier to access. If you are a current Indian Bank customer, the bank will be able to verify your account records, any existing credit or credit card payments and your general financial status. Preferential interest rates on loans are thus granted to the existing customer.

Contributions from a co-applicant

If you have another earning family member, you can add them as co-applicant on the loan so that their income is also taken into consideration while processing your car loan application. When both your incomes are entered, it results in higher repayment capacity and thus giving you a lower interest rate.

Down Payment Amount

Though Indian Bank gives you up to 85% of the on road cost of the vehicle as loan amount, if you can pitch in a higher down payment, you can negotiate for better interest rates. Higher down payments mean lower loan amount and better repayment capacity. Banks are constantly looking for low risk loan customers to reduce their loan default risk. Hence, when you offer a higher down payment, you have a chance of getting a lower interest rate.

Existing liabilities and assets

Last but not the least, your existing debts and liabilities play an important role in determining your car loan eligibility and interest rates. If you have existing liabilities, it diminishes your repayment capacity. This is considered a high risk proposition for the lender. It will also put additional cash flow stress on you. Hence, an applicant with very low or nil existing liability is a preferred candidate for any bank.

Benefits of getting a car loan from Indian Bank

Indian Bank has been in the service of the Indian public for several decades. They have various financial products to cater to a wide variety of customer segments. IB-Vehicle Loan offers preferential rates and various discounts to its applicants;

• Indian Bank Car Loans are available for both salaried and self-employed individuals.
• Exclusive rates for holders of Indian Bank accounts
• Car Loans given to age groups between 21 and 65 years of age
• Loan to Value Ratio is up to 85% of the on road price of the vehicle
• The cumulative term of the loan is up to 7 years
• Interest rates starting from just 7.90%

Indian Bank Car Loan Eligibility Criteria

Documents Required for Indian Bank Car Loans

One has to submit the following documents, along with the duly filled application form, to avail an Indian Bank Car Loan:

Salaried Employees

• Filled up loan application form
• 2 Passport Size Photo
• Copy of Income Tax PAN
• Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN
• Quotation of car
• Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
• Income Documents – 3 months’ pay slip, 2 years Form 16, 3 months’ bank statement showing salary credit and any EMI debit
• R.C of Vehicle and Insurance of Car (For Used Cars)

Self-Employed

• Filled up loan application form
• 2 Passport Size Photo
• Copy of Income Tax PAN
• Identity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PAN
• Quotation of car
• Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
• Income Documents – 3 months’ pay slip, 2 years’ Form 16, 3 months’ bank statement showing salary credit and any EMI debit
• R.C of Vehicle and Insurance of Car (for used cars)

Fees & Charges related to Indian Bank Car Loans

How to apply for Indian Bank Car Loan?

You may apply for a car loan from Indian Bank by calling the bank directly or by applying online. Loan application through an online platform increases the odds of having the best lending rates, low payment costs and exclusive deals in the form of cash backs. When you contact the bank, they will gather your paperwork and start the loan process which involves verifying your credit score, the valuation of the car, and the calculation of eligibility. The bank will make a recommendation on your loan depending on the outcome of the appraisal.

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