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    Andhra Bank Car Loan Interest Rates

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    10.00% Fixed
    -
    25L - 50L
    1-7 Years
    Response Time Within 30 minutes

    Andhra Bank Car Loan Interest Rates is Rated as "Excellent!" by 5 Users

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    Promised Interest Rate

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    Overview about Andhra Bank Car Loan

    Andhra Bank offers loans for the purchase of two wheelers and four wheelers. Under the four wheeler loan scheme, customers can avail of finance to purchase a new or used car. Andhra Bank also offers a special loan scheme for women. With an Andhra Bank car loan, you can take advantage of the variety of repayment terms available. Depending on your income and type of employment, you can choose to pay back your loan quarterly, bi-annually, and annually. Andhra Bank Car Loan Interest Rates are attractive. Loans are available to individuals and firm. The quantum of your loan is based on your salary where the maximum EMI should not be more than 60% of net income of salaried individuals and 70% for non-salaried people.


    Andhra Bank Car Loan Interest Rates

    The rates of interest offered on a car loan from Andhra Bank are very appealing. Customers can enjoy repaying the loan at low rates of interest. The rates of interest are determined based on your choice of new or used car loans. Furthermore, if you are an existing Andhra Bank Home Loan customer, you are eligible for a concessional interest rate on your Andhra Bank car loan.

    Andhra Bank Interest Rate Table for New Car Loans

    Particulars Charges
    Interest Rate Base rate + 0.50%. Currently 10.50% p.a.
    Interest rate concession for existing home loan customers 0.25% concession on rate of interest
    Loan Amount Salaried individuals - up to 60% of net salary. Non-salaried - up to 70% of net earnings. Corporate clients and firms - Rs.25 lakhs to Rs.50 lakhs
    Loan Tenure Maximum 84 months
    Processing fee A nominal fee is charged upfront when the loan is sanctioned
    Administrative charges Charged at the end of every quarter
    Part Payment Charges Nil
    Foreclosure charges Applicable as per your loan

    Andhra Bank Interest Rate Table for Used Car Loans

    Particulars Charges
    Interest Rate Base rate + 3.25%
    Interest rate concession for existing home loan customers 0.25% concession on rate of interest
    Maximum age of used car 3 years
    Loan Amount 60% of garage value or Rs. 25,00,000 /- whichever is lower.
    Loan Tenure Maximum 60 months
    Processing fee A nominal fee is charged upfront when the loan is sanctioned
    Administrative charges Charged at the end of every quarter
    Part Payment Charges Nil
    Foreclosure charges Applicable as per your loan

    Andhra Bank Car Loan Interest Rate Table for Women Borrowers

    Particulars Charges
    Interest Rate for new car loans Base rate + 0.50%. Currently 10.50% p.a
    Interest Rate for used car loans Base rate + 3.25%
    Concessions as Processing Charges 1% of the loan amount + Service Tax
    Maximum age of used car 3 years
    Loan Amount for New cars 90% of on road price or 3 years gross salary whichever is lower
    Loan Amount for Used cars 60% of garage value or 3 years gross income whichever is lower, subject to maximum of Rs. 25.00 lakhs
    Loan Tenure for New cars Minimum 12 months and maximum 72 month.
    Loan Tenure for Used cars Maximum 60 months
    Processing fee A nominal fee is charged upfront when the loan is sanctioned
    Administrative charges Charged at the end of every quarter
    Pre Payment Charges Nil

    How to Calculate Interest Rate on my Andhra Bank Car Loan

    Calculating anything from your eligibility to your EMI to the total interest you would pay on your loan has never been easier. With the calculator available on BankBazaar.com, you can find out all the information you need without ever having to do any math. Visit BankBazaar.com, and hover over “Finance Tools”. Click on Car Loan EMI calculator.

    Enter the details of your loan; loan amount, tenure, interest rate and processing fees. The calculator will give you a complete computation of all the components of your loan including your interest payable.

    Alternatively, you can manually calculate the interest on your Andhra Bank car loan using this formula: E = P*r*[(1+r)^n/(1+r)^n-1)]

    P = Principal Loan Quantum

    E = EMI

    R = Rate of interest per month

    N = Number of years

    To expand on the formula,

    (Principal) X (Interest rate per month) X (1+Interest rate per month) to the power of loan tenure

    [(1+Interest rate per month) to the power of loan tenure – 1]

    For example, if you take a loan starting in October 2015, for Rs. 2 lakhs at Andhra Bank’s car loan interest rate 2015 of 10.50% for a period of 4 years, your EMI will be = [200000 *0.875% [(1+0.875%)^2/(1+0.875%)^2-1)]

    According to the calculator:

    • Your EMI will be Rs. 5121
    • You will pay Rs. 45792 totally in interest.
    • Assuming 1% processing fees is charged, the amount will be Rs. 2000.
    • The total amount you will pay back on your loan is Rs. 2,47,792.

    Amortization schedule

    The following schedule is based on a Rs. 2 Lakh Andhra Bank Car Loan sanctioned in October 2015 for the purchase of a new car taken for a tenure of 4 years. The rate of interest is base rate +0.50%. The processing fee has been assumed to be 1%.

    Year Principal Paid Interest Paid Total Payment Outstanding loan balance
    2015 Rs. 10201 Rs. 5,162 Rs. 15,363 Rs. 1,89,799
    2016 Rs. 43578 Rs.17,872 Rs. 61,450 Rs. 1,46,222
    2017 Rs. 48379 Rs. 13,068 Rs. 61,447 Rs. 97,843
    2018 Rs. 53710 Rs. 7,736 Rs. 61,446 Rs. 44,133
    2019 Rs. 44133 Rs. 1,952 Rs. 46,085 Rs. 0

    Factors affecting Andhra Bank Car Loan Interest Rates

    Income - Your income plays a role in determining the interest rates on your car loan. Generally, the interest rate is fixed for all, but banks can increase the interest rate at its discretion based on your income. Banks need assurance that you will repay the loan, therefore they will look into how much you are earning, as well as how much current debt you hold. The higher your debt-to-income ratio, the higher your interest rates could go. A co-signer could help reduce the rate of interest.

    Credit Score - As stated already, banks need to know that you will be able to repay the car loan, so your prior credit history plays a pivotal role. Your credit score is maintained by CIBIL, the credit information bureau of India. It records all behaviour related to credit, good and bad. Therefore a good credit score means you have managed your credit well. Repaying your loan EMIs on time, paying your credit card bills in full, and avoiding defaults leads to a high credit score.

    Loan Tenure - A long loan tenure would result in you paying more interest over the course of your loan. Banks might consider a lower rate of interest if you have a good credit score and you meet the eligible income criteria. Even with a lower rate of interest on your car loan, they will recover a higher amount of interest. But considering that a longer tenure means that there is a lot more time for things to happen, banks may not be willing to lower the interest rates. Unfortunate events such as accidents, disabilities or even death would hamper the repayment of the loan. A long tenure is more risky for the bank because A shorter tenure doesn’t give much time for for interest and inflation rates to skyrocket.

    Down Payment - A bigger down payment means you have less of the loan to clear. It’s favourable to make a large down payment as the bank’s risk comes down. Banks will have a lesser amount to recover from you over the tenure of your loan. In case the value of the car depreciates drastically, and you are unable to repay the loan, the bank will recover the money by seizing and selling the vehicle. So, a lesser amount to recover is always more favourable.

    Car model and age - New cars tend to lose their value quickly. Some models depreciate faster than others. So choosing a car model that doesn’t lose its value will work in favour of the interest rates on your car loan. Banks will be assured that they can recover a high amount from selling the vehicle in the event that you cannot pay back the loan.

    For used cars, the age of the car also plays an important role. The older the car is, the more risky it is for you and the bank. For you, the age of the car can factor into its working condition and life remaining. There may also be a higher maintenance cost with older cars. This could be more of a burden for the borrower. So banks may be more apprehensive to approve your car loan.

    How CIBIL scores affect Andhra Bank Car Loan Interest rates

    CIBIL is the Credit Information Bureau India Limited that keeps a track of everyone’s credit history. Credit scores have become an important indicator of a customer’s credibility. Your debit history does not matter when it comes to CIBIL scores. Only your credit record is maintained. Repaying loans, EMIs, credit card dues on time and in full will contribute to a better score. Any defaults on payments, late payments, spending over the credit limit will put a dent in your credit score. On applying for an Andhra Bank Car Loan, the bank will make an enquiry into your score to see what kind of customer you will be. If they are happy with your score, you will be eligible to get your loan approved, and more over, you can also negotiate better terms and conditions of your loan, including interest rates.

    Tips on Andhra Bank Car Loan Interest Rates

    • Andhra Bank Car Loan Interest Rates 2015 is currently at 10.50% p.a.
    • For women borrowers earning more than more than Rs. 1,00,000 /- p.a, refer to the car loan scheme for women to avail of better rates of interest. You can also increase your eligibility by adding your husband as a co-obligant. You can show 50% of your husband’s salary to increase your eligibility. You will receive 1% of the loan amount as concession on processing charges. Also enjoy no prepayment charges if you choose to foreclose your loan.
    • Existing Andhra Bank home loan customers can enjoy a 0.25% concession in the interest rate of an Andhra Bank car loan.
    • You can enquire into your own CIBIL score on the CIBIL website before you approach any bank for a loan. This will help you determine beforehand if you are eligible for a loan. If you find that your CIBIL score is high, you will be in a better position to bargain for a better interest rate.
    • A co-applicant or a co-signer in the loan can also help secure good terms on your car loan.
    • In case of an Andhra Bank used car loan, ensure the make and model are good, and age of the car doesn’t exceed three years. The condition of the car also matters. These can factor into your eligible loan amount and interest rates.
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