Car Loan
ride your favourite car with car loans from us
Learn more about our Car Loan under Retail Loan Products.
Our car loan scheme is among the popular of all the retail loan schemes since it offers quick processing of loans for the purchase of new cars at low interest rates and simple documentation and conditions.
- Purpose
- To buy New Car / Four Wheeler for personal or professional use.
- To buy Pre Owned (Used / Second Hand) Cars in good working condition and not more than 4 years old.
- Eligibility
- Individual / HUF / Partnership Firm / Limited Company / Trust Individual: Minimum Gross Income of Rs. 1,20,000 per annum (including the income of the spouse). For Others: The average Debt Service Coverage Ratio should be 1.50:1 or more.
- Loan Quantum
- Up to Rs. 150 Lakhs for New Vehicle.
- For Purchasing Second Hand Cars: Restricted up to Rs. 15 Lakhs.
- Margin
- 15% of “On Road Price” for New Vehicle / 30% of the Purchase Value or Market value of Pre Owned Cars whichever is lower.
- Guarantee
- In case of HUF: Guarantee from Male Members of the HUF. In Case of Individuals: Spouse or father of the applicant or third party. In case of others: Partners / Directors / Trustees Guarantee may be waived in appropriate cases by the concerned sanctioning authority based on repaying capacity of the applicant.
- Repayment
- 5 Years. Equated Monthly Instalment. For salaried persons - EMI should not exceed 40% of Take Home Salary and for others, the minimum ADSCR should be 1.50:1.
- Security
- Hypothecation of Vehicle to be Financed.
- Rate of Interest
- Click MCLR Rates of Interest for MCLR based interest rates. For further details please contact our nearest branch.
- Penal Interest
- Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.
- Processing Charges
- 1.00% of Limit sanctioned without any maximum cap.
- Prepayment Charges
- At the rate of 0.25% of amount prepaid. In case, where the loan is closed by way of Take Over by 0ther Bank alone will attract prepayment Charges. However, no prepayments charges will be levied in cases where the loan is closed by the borrower from own sources of funds.
- Documentation
- Usual documents as per our Bank Norms.
- How to Apply
- Loan Application Letter to be accompanied by: 1. Proof of Income (IT Return / Salary Certificate / Others). 2. Quotation. 3. Letter from Third Party Guarantor, if applicable.
- Other Stipulation
- Hypothecated Vehicle should be adequately insured.
- Our Bank’s hypothecation charge should be duly registered with the Regional Transport Authority and it should be recorded in the RC Book.
- Duplicate key and RC Book copy should be obtained and kept along with the loan documents.
Loan EMI Calculator:
For a Car Loan of Rs. 5,00,000 repayable in 60 equal monthly instalments at an interest rate of 10.75% p.a., the equated monthly instalment (EMI) payment shall be around Rs. 10,808.98. Click for Monthly Amortization Chart.
Loan application documents:
- Proof of Income (IT Return / Balance Sheet / Salary Certificate / Others).
- Quotation from registered vendor.
- Letter from Third Part Guarantor, if applicable.
All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Goods & Service Tax (GST) on All Service Charges extra wherever applicable.
