Axis Bank Car Loan Interest Rates

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Axis Bank Car Loan interest rate for new cars begins at 9.05% p.a. and goes up to 11.30%. For Used Car Loans the interest rate begins at 14.8% and goes up to 16.80% p.a. The bank will fund 100% of the on-road price of a new car and up to 85% of the cost of a used car.

Axis Bank Car Loan

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Factors Affecting Axis Bank Car Loan Interest Rates

Axis Bank offers high-value car loans to its customers with minimum funding of Rs.1 lakh. The interest rates offered for new and used car loans range between 9.05% and 16%. The interest rate that you are eligible for will be dependent on various factors, some of which have been mentioned below:

1. Income-to-Debt Ratio – This is one of the primary factors that lenders take into consideration while determining the rate of interest. It basically is an indicator of the amount of money you owe to different entities. It is always recommended to have a low income-to-debt ratio as it denotes your capacity to make EMI payments on a monthly basis, without any delays.
2. Loan Tenure – Longer the tenure of your loan, lower will be your car loan interest rate. However, you also have to take into consideration that a longer tenure means having to pay interest for an extended period of time. A short tenure means you will be required to pay a higher rate of interest. It can get difficult choosing the right loan tenure for your car loan. To make it easy, you can make use of tools like EMI calculator. Compute the interest payment for the loan tenure you have chosen and select a tenure in which your total EMI payment is less.
3. Vehicle’s Age – When you borrow a car loan, the vehicle being financed basically acts as a collateral for the entire tenure of the loan. In case you default on the payment of the EMI, the bank can hold onto your vehicle, in order to balance out the outstanding dues. This is the reason why lenders and banks take into consideration the model and age of the vehicle while determining the rate of interest.
4. Applicant’s income and occupation – In addition to the credit score of the applicant, his/her income and occupation type are also taken into consideration while determining the rate of interest. Banks typically prefer applicants that have a steady source of income as it indicates their capacity to make repayments without defaults.

FAQs

1. What should the minimum age of an applicant be if he/she is a salaried individual applying for a used car loan?

The applicant applying for a used car loan should be at least 21 years old.

2. What is the maximum tenure of loan with respect to used cars?

The maximum loan tenure offered by Axis Bank with respect to used car loans is 5 years.

3. What is the tenure of loan offered by Axis Bank for new cars?

Axis Bank offers fixed loan tenure to car loan applicants, ranging between 12 months and 96 months.

4. Can I sell off my car before repaying the whole loan amount?

You are not allowed to enter into transaction of any nature without obtaining a ‘No Objection Certificate’ from Axis Bank. This certificate (NOC) can only be obtained after the entire loan amount has been paid off.

5. I want to update my email address and phone number registered in my car loan account. How do I do that?

This can be accomplished in the below-mentioned ways:

• Customers can get in touch with Axis Bank’s customer care centre though their toll-free numbers - 1860-419-5555 or 1860-500-5555.
• Customers can use their registered email IDs to write to Axis Bank at loans@axisbank.com.