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  • Andhra Bank Car Loan Interest Rates

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  • Andhra Bank offers car loans for brand new cars as well as used cars for interest rates ranging from 9.45% p.a. to 12.2% p.a. The bank offers a special scheme for women borrowers with varied features. You can choose to repay the loan on a monthly, half-yearly, quarterly, or yearly basis based on your income flow. To apply for the loan, your minimum gross income should be Rs.1 lakh.

    Andhra Bank Car Loan

    Features All borrowers Women borrowers

    Interest Rate

    • New car: 9.45% p.a.
    • Used car: 12.15% p.a.

    Quantum of finance

    • New car:
      • Salaried individuals: EMI should not be over 60% of net salary
      • Non-salaried: EMI should not be over 70% of net earnings
      • Corporate clients and firms: Rs.25 lakhs to Rs.50 lakhs
    • Used car: 60% of the value of the car or Rs.25 lakh, whichever is lower
    • New car: 90% of the on-road price or gross salary of 3 years, whichever is lower
    • Used car: 60% of the value of the car or gross salary of 3 years, whichever is lower

    Loan Tenure

    • New car: Up to 84 months
    • Used car: Up to 60 months
    • New car: Up to 72 months
    • Used car: Up to 60 months

    Processing fee

    1% of the loan amount, subject to min Rs.1,000 and max Rs.25,000

    Administrative charges

    Charged at the end of every quarter

    Lowest EMI per lakh

    Rs.2,098 (at 9.45% p.a. interest for a 5-year tenure)

    Factors affecting Andhra Bank Car Loan Interest Rates

    Several factors influence the rate of interest offered for your car loan. Explained below are a few such factors:

    • Income: The bank can increase the interest rate at its discretion based on your income. It needs assurance that you will repay the loan, therefore it will look into how much you earn as well as how much current debt you hold. The higher your debt-to-income ratio, the higher your interest rates could go.
    • Credit Score: The credit score is a factor that will help you understand your credit history. The lower your credit score, the higher your default payments in the past. Hence, the interest rate offered will be low only if you have a good credit score, ideally above 700.
    • Loan Tenure: A long loan tenure could give loan applicants possibilities to make default payments. Therefore, the bank may charge a higher interest rate for a longer tenure that it would charge for a shorter tenure.
    • Car model and age: The bank takes into consideration the car model you choose and in case of loans for used cars, it pays special attention to the age of the car. Banks estimate the resale value of the car during the applicant’s loan tenure. If the resale value is found to depreciate fast, it will levy a higher rate of interest.
    • Guarantee: A co-obligator to the loan scheme will ensure you get a larger loan amount and a lower interest rate. This is so because the loan will be repaid by the co-obligator in case the primary borrower himself/herself fails to pay. Since the bank has an added assurance that the loan will be repaid, it will offer a lower interest rate.

    FAQs

    1. What is the minimum margin imposed under Andhra Bank’s car loan scheme?
    2. The minimum margin for each category of borrowers in case of loans for new cars is as follows:

      • Salaried: 15%
      • Non-salaried: 20%

      For used cars, the minimum margin applicable is 40%.

    3. Who can act as the co-applicant to the loan?
    4. Any third party acceptable by the bank can act as the co-applicant of the loan. The co-applicant will be required to repay the loan in case the primary applicant fails to do so. In case of women borrowers, up to 50% of the spouse’s income can be taken into consideration while calculating if the individual is eligible for the loan.

    5. What can be provided as security for the loan?
    6. The car being financed is the security for the loan. Hypothecation of the car needs to be done.

    7. Is there a minimum amount to be paid as the processing charge?
    8. The minimum processing fee payable is Rs.1,000 and the maximum is Rs.25,000 exclusive of GST.

    9. How old can a second-hand car be to apply for a loan?
    10. A second-hand car which is not older than 3 years can be financed under Andhra Bank’s car loan scheme.

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