Central Bank of India car loan at affordable interest rates ranging between 8.9% and 10%. The ‘Cent Vehicle’ car loan scheme is suitable to meet the requirements of self-employed individuals, salaried employees, independent entrepreneurs, agriculturists, NRIs, Companies, and firms who have a stable source of income.
| Particular | Charges | Compound interest |
|---|---|---|
| Particular | Charges | |
| Interest Rate | 8.90% - 10% | |
| Loan amount | up to Rs. 75 lakh | |
| Minimum & Maximum Car Loan Tenure | Minimum Tenure - 12 months Maximum Tenure - 84 Months (7 years) | |
‘Cent Vehicle’ auto loan scheme is offered by Central Bank, one of India’s leading public sector banks. Central Bank was founded in 1911 and is headquartered at Mumbai, India. The Bank currently has a strong presence in around 29 States and 6 Union Territories with over 4,700 branch network across India, with 4 extension counters and 29 satellite offices. This car loan scheme can be used for the purpose of purchasing new or used vehicles, for personal use only.
How to Calculate Interest Rate on Central Bank of India Car Loan
You can repay your car loan amount within the chosen loan tenure through?Equated Monthly Installments?or EMIs. This, basically is the amount that is to be paid back to Central Bank of India after availing the car loan and includes the principal amount as well as the interest amount. There will be an increase in the principal amount repaid and a reduction in the amount of interest that is paid out, as the loan tenure progresses.
The formula for calculating the EMI on a car loan is -
EMI (E) = [P x r x (1+r) ^n]/ [(1+r) ^n-1]
In this formula,
P = the loan amount or principal,
R = interest rate per month [for an annual interest rate of 8.70%, the rate of interest will be 8.70/ (12 x 100)],
N = the number of monthly instalments made during the tenure, i.e., no. of years or months taken for the repayment of the loan.
For an amount of Rs.20 lakh at an interest rate of 8.70% with a loan tenure of 4 years, an estimate of the total interest to be paid out would be Rs.3,58,215. Therefore, the total amount repaid would be Rs.23,58,215.
In the following illustration, for a car loan amount of Rs.14 lakh to be repaid in 3 years at an interest rate of 8.70% from Central Bank of India (Calculations based on EMIs paid in advance):
EMI per year for 3 years (starting from February 2019 – January 2022):
| Particular | Charges | Compound interest | |
|---|---|---|---|
| Year | Principal | Interest Amount | Balance Due |
| 2019 | Rs.3,97,117 | Rs.86,942 | Rs.10,02,883 |
| 2020 | Rs.4,58,823 | Rs.69,242 | Rs.5,44,060 |
| 2021 | Rs.5,00,371 | Rs.27,693 | Rs.43,689 |
| 2022 | Rs.43,689 | Rs.317 | Nil |
Total interest amount to be paid for a Central Bank Car Loan amount of Rs.14 lakh for 3 years would be Rs.1,84,193. Therefore, the total payment made by the end of the tenure is Rs.15,84,193. The principal amount that is paid back in each EMI increases with the tenure and the interest rate paid out in the EMI decreases until the loan is repaid completely.
The following factors affect the Central Bank of India car loan interest rate:
The Credit Information Bureau of India Limited generates the CIBIL TransUnion Score based on an individual’s credit history such as loan payments, credit dues, credit accumulated, secured and unsecured loans, etc. The CIBIL Score is a 3 digit number ranging between values 300 to 900. Banks scrutinize an applicant’s CIBIL Score to ensure whether he/she is eligible or creditworthy. This is weighed against other factors before a decision is made regarding whether or not to sanction the loan amount to the applicant.
An individual with a higher CIBIL Score has a greater probability of procuring car loans at an attractively lower rate of interest since this places the applicant in a position of power to negotiate interest on a car loan. Those who have a low CIBIL score have a very limited chance of getting a car loan approved by Central Bank of India. If the loan amount is sanctioned, a higher interest rate might be levied on the same to balance the risk involved in lending out to borrowers with a low credit rating.
Key Points
Yes, you can visit the nearest branch of the Central Bank of India where an official from the bank will assist you with the process of availing a car loan. You must make sure you carry the necessary documents which you will have to submit to the bank in order to avail a car loan from the lender.
You can call on the toll-free number 1800-22-1911 which is open 24 hours for 7 days in case of any doubt. You can also visit the ‘Contact Us’ section on the official website of the bank where you will get the contact details of the zonal offices of the bank in the city you reside in. You can either call on the contact number or visit the branch in order to get your query cleared.
The minimum age of eligibility is 18 years and maximum age of eligibility is 65 years.
The minimum income criteria is that the co-applicant's gross annual income must be Rs.2.4 lakh in order to be eligible for a car loan from Central Bank of India.
Yes, NRIs can apply for a car loan from Central Bank of India.
GST of 18% is applicable to all banking products and services from the 1st of July, 2017.
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