Axis Bank Car Loan Interest Rates

Axis Bank Car Loan interest rates start at just 9.15% p.a. for new cars and 14.90% p.a. for used cars. However, the effective rate of interest on your car loan will be decided by the bank on the basis of a number of factors. These factors include your credit score, your income, the loan repayment period that you choose, and several other related factors.

Axis Bank offers 4 different products under Axis Bank Car Loans. These products are – New Car Loan, Pre-Owned Car Loan, Balance Transfer and Top Up Car Loan, and Loan against Car. Listed below are the interest rates for new and pre-owned car loans from Axis Bank.

Axis Bank Car Loan Interest Rates for Different Schemes

Features of Axis Bank Car Loan

The features of Canara Bank Car Loan can be summed up as follows:

• Up to 100% financing of the on-road price of a new car
• Up to 85% financing of the value of a used car
• Competitive rates of interest
• Loan repayment tenure of up to 8 years

How are Axis Bank Car Loan EMIs Affected by Pre-Payments?

To reduce your payable EMI, you can also consider making pre-payments during the loan tenure. Keep in mind that most lenders charge a pre-payment fee. When you prepay a part of your loan, the outstanding loan balance reduces, which, in turn, reduces the payable EMI. Thus, if you wish to reduce the repayment burden post taking a loan, you can prepay the loan in parts. It is advisable, however, to check your lender’s terms and conditions regarding borrowers making pre-payments.

Factors affecting Axis Bank Car Loan Interest Rate

Various factors determine the interest rates for an Axis Bank car loan. Few of these factors are given below.

• Tenure: An important factor that is considered is the tenure that the customer has chosen for the loan repayment. Usually, most prospective borrowers prefer longer tenures as it reduces the EMI amount that is to be paid. However, customers need to note that longer tenures usually result in a higher interest rate. Hence, shorter tenures are advised.
• Income: The applicant’s income is another very important factor that is considered. The interest rate that you are charged may vary based on the nature of your employment.
• CIBIL Score: The score generated by the Credit Information Report called the TransUnion Score is an important criterion for financial institutions and bankers while determining a person’s eligibility for a certain loan. If you maintain a good credit score, you will be charged a lower rate of interest by the lender.
• A previously established relationship with the bank: This is an added benefit as customers with a prior relationship with the bank may avail discounted interest rates.

How CIBIL scores affect Axis Bank Car Loan Interest Rates

CIBIL or Credit Information Bureau India Limited provides, maintains, and summarizes the person’s loan payments and credit history and generates a score called the CIBIL TransUnion Score, which is a 3-digit number that ranges from 300 to 900. This score is an important factor that is considered by financial institutions and banks while determining the eligibility of an applicant. The higher the credit score, the higher are one’s chances of procuring loans at a reasonable interest rate. Those with higher CIBIL scores are also seen as a lower risk category and hence can avail loans more easily as compared to those with low CIBIL scores.

Quick, easy, and hassle-free, with a plethora of benefits - this describes the Axis Bank Car Loan. This loan is flexible, great for those who are just looking to purchase a car, and offers transparency in the entire process. Axis Bank also offers flexibility in terms of loan tenure which can be extended for up to seven years and can be availed easily with minimal documentation and accompanying procedures. The Axis Bank Car Loan is procured on the basis of the applicant’s income, occupation, and age.

FAQs about Axis Bank Car Loan Interest Rates

1. Is a credit score of 760 considered good when applying for car loans?

   Yes, a credit score of 750 is preferable when applying for loans. It is likely that you will be offered the best interest rates since you have a good credit score.

2. What is the minimum income required to take a car loan from Axis Bank?

   Salaried individuals should earn at least Rs.2.4 lakh p.a. to be eligible to borrow a car loan from Axis Bank. Self-employed individuals should have an income above Rs.2 lakh (Rs.1.8 lakh for select car models).

3. What is the maximum loan amount that I can borrow?

   This will vary based on your eligibility, repayment capacity, and whether you are purchasing a new or pre-owned vehicle. It is advisable to contact the lender for more

4. Can I negotiate for a lower interest rate with Axis Bank?

   No. Yes, if you have a good credit score or have a prior relationship with the lender, you can negotiate for a lower interest rate.

5. How can one apply for an Axis Bank Car loan?

   Customers can apply for an Axis Bank car loan in many ways. Customers can visit Axis Bank’s website to apply for the loan or visit the nearest Axis Bank Loan Center and apply personally. Other options would be to either call the Axis Bank Call Centre or via SMS. You can also choose to apply for a car loan through BankBazaar.

6. Are there any collaterals that need to be provided while procuring a car loan from Axis Bank?

   Since the vehicle itself will be the collateral and hypothecated to Axis Bank for the entire tenure of the loan, there is no need for additional security.

7. What kind of vehicles does Axis Bank provide loans for?

   Axis Bank offers loans for most types of passenger vehicles, sports-utility vehicles, and multi-utility vehicles which are purchased for personal use.

8. Can a customer sell his/her car before repaying the entire loan?

   Customers cannot sell their vehicle until they receive a No Objection Certificate or NOC certificate from the loaning bank. This document is only given after all the dues have been cleared.