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Karur Vysya Bank is more than a century old private sector bank in India. This Bank has a variety of products and services including Retail Banking, Corporate Banking, MSME Banking, NRI Banking, Agricultural Banking, Insurance and Loans among others. Loan products of the Bank also include car loans that come with longer tenure and up to 100% financing option. Given below are the details of the car loans at Karur Vysya Bank and the interest rates charged on auto loans.
The product name of car loans of the Karur Vysya Bank is Flexi Mobile Car Loans. These loans are available for the purchase of new or second hand vehicles. The purpose of this loan can be for the personal or business use except in case of hiring a car. The underlying condition to avail a loan for a used car is that such car cannot be older than 5 years.
The key features of Karur Vysya Bank are tabled below.
Particulars | Details |
Maximum Amount of Loan | Up to 100% of on-road funding |
Rate of Interest | Flexi Mobile
Flexi Mobile Used
|
Tenure | Flexi Mobile
Flexi Mobile Used
|
Primary Security | Hypothecation of the vehicle to be purchased out of loan |
Guarantee | Suitable guarantor that has a sufficient net worth as acceptable by the bank. |
Processing Charges |
|
The above key aspects and other details of the car loans of the Bank are discussed in detail hereunder.
Quantum of Loan
Karur Vysya Bank provides up to 100% of the value of the on road price of the vehicle. The quantum of loan disbursed will vary on a case to case basis and is dependent on the credit profile of the applicant as well as their repayment capacity.
Rate of Interest
The rate of interest levied on the Flexi Mobile Car Loans is based on the Repo rate. These are floating rates and differ in case of loans for purchase of new cars or used or second hand cars. The current applicable rates levied by Karur Vysya Bank for Flexi Mobile Car loans are tabled below.
Loan Type | Minimum Interest Rate | Maximum Interest Rate |
Flexi Mobile Car Loan | 8.50% | 8.75% |
Flexi Mobile Used Car Loan | 12% | 16.50% |
Tenure
The tenure of the car loan offered by the bank is a maximum period of 7 years for new cars and 5 years for used cars. The repayment schedule can be flexible and can be negotiated with the bank as per their guidelines. Borrowers can repay the loan through post dated cheques or ECS or auto debits.
Margin
Margin money is the portion of the value of the vehicle that has to be furnished by the borrower as part of the loan process. The bank has specified the4 margin money to be furnished by the borrowers in case of purchase of used cars as well as new cars. This amount is the minimum amount that has to be provided by the borrower. The borrower has the discretion to provide more margin money and reduce the loan liability. The margin money as per the guidelines of Karur Vysya Bank is tabled below.
Type of Loan | Margin Money |
Flexi Mobile Car Loan | 10% of the value of the car |
Flexi Mobile Used Car Loan | 40% of the value of the car |
Security
The primary security against the loan provided by the Bank is the vehicle purchased out of the loan. Bank has a hypothecation charge on such vehicles. Borrowers can provide additional security like NPS certificate, LIC policy, Bank Deposits, etc. if required by the bank depending on case to case basis.
Apart from the above, the borrower also needs to provide a third party guarantee of a person having suitable net worth that can be acceptable to the Bank. Such guarantors can be preferably the spouse or any family member or any friend of the borrower.
Processing fees
The processing fees are the nominal charges levied by the bank for sanctioning the loan. These charges are dependent on the amount of loan sanctioned and are tabled below.
Loan amount | Processing charges |
Up to Rs. 10,00,000 | Rs. 3,000 |
Above Rs. 10,00,000 | Rs. 7,500 |
Insurance Coverage
The bank provides the benefit of an insurance cover to the borrower with BAGIC. Such cover is available to the extent of the loan amount and is payable by the borrower at his/her discretion
Part payment or Foreclosure Charges
Karur Vysya Bank does not levy any part payment or foreclosure charges on any of its retail loans that have floating rates of interest.
The bank provides car loans to all the residents of the country. This means that these loans can be availed by individuals or non-individuals in our country. The purpose for these loans as mentioned above can be either for personal use or for commercial purpose.
Furthermore, the bank has explicitly excluded the car hire purpose from the eligibility criterion. Also, in case of second hand vehicles, the age of the vehicle has to be less than 5 years.
The Bank requires the applicants to submit a set of documents that are essential to complete the application as well as help ascertain the eligibility of the applicant. These documents are mentioned below.
Identity Proof
Applicant can submit any of the following documents as an identity proof in this regard
Address Proof
Any of the following documents can be considered as an address proof for the purpose of applying a loan
Age Proof
Car Related Documents
Applicants are also required to submit documents relating to the car that has to be purchased out of the loan. These documents are,
Bank Statement for the past 6 months
Recent Passport Size Photographs
Duly filled Application Form
The application process for the car loan of the bank is very simple and basic. The bank provides the benefit of faster processing of loans so the applicants can get immediate finances for purchasing the new or second hand vehicles.
Potential borrowers can apply for the loan by directly visiting the nearest branch of the bank or by contacting the bank through its customer care service.
Another easier way to apply for the loan is through the website of the bank. Applicants can click on the link provided below and provide their basic information as required by the bank. The representatives of the bank will then contact the applicants for further details and the process of applying for a loan for purchasing a new or used car.
Home>> Personal>> Loans>> Flexi Mobile Car Loan>> Apply Now
1. What are some of the factors that impact the interest rates on car loans?
There are many external and internal factors that impact the final applicable interest rates levied on the car loan product of any bank. Some of such factors are discussed below.
Credit History of the Applicant and their loan repayment capacity
A sound credit history of the applicant refers to the good credit rating along with the good repayment capacity of such applicant. The applicant is considered to be a lower risk candidate so the rate of interest applicable is lower as compared to an applicant having a lower credit rating.
Type of Vehicle
Type of vehicle or the dealer of the vehicle can also influence the rate of interest. Used cars carry a higher interest rate as compared to new cars. Also, some dealers offer concessions or discounts in interest rate on certain occasions which can prove to be beneficial for the borrower.
Inflation
Inflation is a major external factor that influences the rate of interest on any loan product. An increase in the rate of inflation results in an increase in the floating rate of interest and vice versa. Also fixed rate of interest becomes cheaper or costlier based on the changes in the inflation rate.
Tenure of Loan
Repayment tenure of a loan product is crucial in determining the rate of interest. A longer tenure increases the risk of default for the lender and hence carries a higher interest rate and vice versa.
Type of Interest
Karur Vysya Bank provides car loans on floating rate of interest which is generally lower as compared to the fixed rate of interest.
Margin Money
Minimum margin money to be provided by the borrower is mentioned above as per the guidelines of Karur Vysya Bank. Increased margin money higher than the amount as specified above will lower the loan amount required by the borrower and thus reduce the interest rate.
2. What is the current interest rate on Karur Vysya Bank Car loan?
The current rate of interest on Karur Vysya Bank Car Loan is between 8.50% and 8.75% in case of new cars and 12% and 16.50% in case of used cars.
3. What is the tenure of car loans of the Bank for buying new cars?
Car loans of this Bank are available for a maximum period of 7 years in case of new cars.
4. Can a NRI apply for the car loan of the Bank?
No. Only residents can apply for the car loan of the bank.
5. Can a person engaged in car hire business get Karur Vysya Bank Car Loan?
No. The bank specifically excludes such persons from being eligible for its car loans.
6. Where can I find the EMI calculator on the website of the Bank?
The EMI calculator for Car loans of the Bank can be found at the following link, Home>> Personal>> Loans>> Vehicle Loans>> Flexi Mobile Car Loans>> EMI Calculator
7. How can a person apply for a car loan through the KVB website?
A person can apply for a car loan through the website by clicking on the following link, Home>> Personal>> Loans>> Flexi Mobile Car Loan>> Apply Now
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