South Indian Bank Car Loan Interest Rates

What are the Highlights of the Car Loans of South Indian Bank?

The Bank provides car loans at very competitive interest rates and has wide eligibility criteria that can benefit the majority of customers.

The key features of the car loans of the Bank are tabled below.

These highlights mentioned above are discussed in depth hereunder.

Quantum of Loan

South Indian Bank provides car finance to the tune of up to 90% of the value of the vehicle in case of new cars and 75% of the value of the vehicle in case of used cars. The minimum loan amount sanctioned is Rs. 1,00,000 . The maximum amount of loan that can be provided by the bank for new cars or used cars is tabled below.

Such amount is irrespective of class of borrowers.

Rate of Interest

South Indian Bank Car Loans are based on the floating rates of interest as well as fixed rate of interest. The floating rates are based on the REPO Rates and differ in case of loans for purchase of new cars or second hand cars. The current applicable rates levied by the Bank for its Car loans are tabled below.

The bank also provides car loans at fixed rates of interest. The details of the same can be available by contacting the bank through its nearest branch or through the customer care service of the bank.

Tenure

The repayment period of car loan of the bank depends on the type of vehicle to be purchased out of loan sanctioned. The maximum period of repayment in case of new cars is 7 years (84 monthly EMIs) whereas in case of used cars it is 5 years (60 monthly EMIs).

The minimum tenure for repayment of car loans of South Indian Bank is 1 year (12 monthly EMIs).

Margin

Margin money is a mandatory requirement of South Indian Bank Car Loan to be provided by the borrower as part of the loan application process. The bank has specified the quantum of margin money to be provided in case of purchase of new cars as well as used cars. The minimum margin money required by the Bank for its car loans is tabled below.

Security

The primary security of the loan provided by the bank is the vehicle purchased out of loan. Bank has the hypothecation charge on such vehicles.

South Indian Bank does not require any additional security or guarantee for its loans apart from the primary security mentioned above.

Processing fees

South Indian Bank levies 1% of the loan amount as processing fees. These charges are levied at the time of sanction of loan. The maximum amount that is charged as processing fees for the car loans is Rs. 10,000.

Part payment or Foreclosure Charges

South Indian Bank does not levy any prepayment charges in case of loan sanctioned at floating rates for individual borrowers. In case of loans based on fixed rates of interest and sanctioned to non-individual borrowers, the applicable charges on prepayment of loan are tabled below,

What are the various factors that influence the interest rate on car loans of South Indian Bank?

There are many factors that influence the rate of interest for car loans of South Indian Bank. These factors affect the rate of interest on an intrinsic level and make it a very crucial point of consideration while selecting a loan product of the lender.

These factors are mentioned below.

Loan amount

Loan amount as required by the borrower is a key factor influencing the rate of interest. A borrower that has a higher loan requirement will get the loan at higher rate of interest and vice versa.

Type of vehicle

The type of vehicle is another factor that will influence the rate of interest. The rate of interest for a new car is higher than the rate of interest on used cars.

Inflation

Inflation is an external factor that directly influences the rate of interest in any country. Floating interest rates are directly proportional to inflation and follow its trend. Fixed interest rate loans may not change directly based on inflation but does become cheaper or costlier depending on the inflation.

Type of interest rate (whether Floating rate or Fixed rate)

Floating rates are generally cheaper as compared to fixed rates of interest which factor in many costs incurred by the bank for lending the funds.

Repaying capacity of the applicant

The repaying capacity of the applicant is the credit worthiness of the applicant and is the basis for sanctioning the loan. Lender will review the repaying capacity of the applicant thoroughly before sanctioning the loan so as to correctly factor in the risk involved in lending the funds.

Repayment period

The repayment period or tenure of the loan is the time period agreed by the borrower to repay the loan taken. If the loan amount is lower and tenure is also short, the risk is considered to be lower and hence the interest rate is also lower. Another point of consideration is that a higher loan amount with lower tenure can be termed high risk attracting higher interest.

Credit Score of the applicant

The credit score of the applicant is the basis of determining the rate of interest. A person with a higher credit score will get the benefit of reduced rate of interest as compared to an applicant with lower credit score.

Margin money

Margin money is part of the value of a vehicle that has to be provided by the borrower. It reduces the risk of the lender and thereby the rate of interest.

What are the eligibility conditions for South Indian Bank Car Loan?

The car loans of the bank are available for the purchase of new cars or second hand cars. These loans are in the nature of retail loans and are targeted for a specific set of customers. These customers are specified below.

All the residents of the country

Non-Resident Indian

Persons engaged in the agriculture

Non-individuals like

• Proprietorship Concern
• Partnership Firms
• LLPs
• Private or Public Limited Companies
• Trusts
• Societies

Any person drawing pension

The age requirement for the eligible individuals stated above is tabled hereunder,

The bank will review the eligibility of all the applicants in case of co-borrowers.

What are the documents required for a South Indian Bank Car Loan?

The documents needed for the car loan of South Indian Bank are based on the category of applicants. These documents are a set of basic KYC documents along with documents relating to income proof and the vehicle to be purchased out of the loan.

The details of such documents are mentioned below.

Identity Proof

• Driving License
• Passport
• Voter Id
• Pan Card
• Aadhaar Card

Address Proof

• Aadhaar Card
• Passport
• Latest Utility Bills
• Leave and License Agreement
• Rental Agreement
• Title Deed of the Residence

Income Proof

• for salaried persons – ITR /Form 16 for last 2 years/ Salary slip / Salary certificate
• for Self-Employed Persons – ITR/AFS/ for last 2 year
• For persons engaged in agriculture and allied activities - Proof of land holding and land tax

Bank Statement for the past 12 months

Passport Size photograph

Specific documents

• Partnership deed
• Memorandum of Association

Vehicle documents

• Invoice of the vehicle
• RC Copy of the Vehicle 
• Insurance Copy of the Vehicle

What is the application process for South Indian Bank Car Loan?

The bank provides the customers with the option of online application or offline application for its car loan. The offline application process is where the customer has to physically visit the branch of the bank and apply for the loan there. Customers can get the application form directly from the bank or can download the same from the website of the bank, duly fill it and submit it along with the necessary documents.

The online application process involves submitting an application request through the website of the bank. The representatives of the bank will contact the customer for further application process. The link for the same is mentioned below.

Home >> Apply for Product /Service

OR

Home >> Personal Banking>> Loans>> Car Loans>> Apply

Customers can also apply for the loan through the mobile application of the bank.

FAQs – South Indian Bank – Car Loan Interest Rates