If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
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  • Corporation Bank Car Loan Interest Rates is Rated as "Blown Away!" by 22 Users

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    Corporation Bank Car Loan Interest Rates

    Overview About Corporation Bank Car Loan Interest Rates

    Corporation Bank offers car loan under the Corp Vehicle Scheme to individuals, Businessmen, Professionals and other salaried individuals, Sole Proprietorships, NRIs, Partnership Firms, Trusts, Companies, Institutions and HUFs. Under this scheme, the borrower can avail a loan quantum of up to Rs.1 crore per vehicle. Loan margin is 40% in case of old vehicles. Hypothecation of the car will be required as security against the auto loan. For this scheme, third party guarantee is not mandatory.


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    Corporation Bank Car Loan Interest Rates 2017

    Interest Rate Loan amount up to Rs. 50 lakhs – 9.40% Loan Amount above Rs. 50 lakhs – 9.90%
    Maximum Loan Amount Rs. 1 Crore
    Minimum & Maximum Car Loan Tenure Minimum Tenure - 12 months Maximum Tenure - 84 Months (7 years)
    Processing Fees/Charge As applicable by the bank
    Foreclosure/ Pre-payment Charges nil
    EMI per Lakh (for 7 year loan tenure) Rs. 1,656*

    *Estimated value of EMI, when paid in advance.

    How to Calculate Interest Rate on my Corporation Bank Car Loan

    With the flexibility of paying back your car loan in the form of Equated Monthly Installments (EMIs), customers can easily own a car without having to bear the brunt of a lump sum expense. By paying nominal rates of interest for a loan tenure of your choice, you can own your dream car.

    If you wish to know how EMI on your car loan is calculated, the formula that is used to derive it is as follows:

    EMI (E) = [P x r x (1+r) ^n]/ [(1+r) ^n-1]

    Here,

    P stands for the principal or the loan quantum,

    R is the rate of interest applicable per month [Therefore, for an annual interest rate of 10.20%, the rate of interest will be 10.20/ (12 x 100)],

    N is the number of monthly instalments made/ no. of months taken for car loan repayment.

    For example: If you take a car loan for Rs. 7,00,000 at an interest rate of 10.20% for a loan tenure of 5 years, Rs. 1,88,958, would be the total interest payable and the total payment made would be Rs. 8,88,958.

    In the following illustration, for a car loan amount of Rs. 10,00,000 to be repaid in 2 years at an interest rate of 10.20% from Corporation Bank(Calculations based on EMIs paid in advance), the EMI per month from Oct 2015:

    EMI Principal Interest Amount Total Payment Balance Due
    Oct 2015 Rs. 45,848 Rs. 0 Rs. 45,848 Rs. 9,54,152
    Nov 2015 Rs. 37,737 Rs. 8,110 Rs. 45,848 Rs. 9,16,415
    Dec 2015 Rs. 38,058 Rs. 7,790 Rs. 45,848 Rs. 8,78,357

    EMI per year for 2 years (starting from October 2015 - September 2017):

    Year Principal Interest Amount Total Payment Balance Due
    2015 Rs. 1,21,643 Rs. 15,900 Rs. 1,37,543 Rs. 8,78,357
    2016 Rs. 4,82,733 Rs. 67,438 Rs. 5,50,171 Rs. 3,95,624
    2017 Rs. 3,95,624 Rs. 17,004 Rs. 4,12,628 Rs. 0

    Total interest amount to be paid for a Corporation Bank Car Loan amount of Rs. 10, 00,000 for 2 years would be Rs. 1, 00,342. Therefore, the total payment made by the end of the tenure is Rs. 11, 00,342. The rate of interest gradually decreases as the EMI is repaid and the principal loan amount repaid in the EMI increases with the tenure.

    Factors Affecting Corporation Bank Car Loan Interest Rates

    • Third-party Guarantee - The spouse / or may other individual can stand as guarantor to the car loan taken by an applicant. If the guarantor has a substantial income to back their status and creditworthiness, the applicant can get the auto loan easily approved as well as bargain for a lower car loan interest rate.
    • Tenure of the loan - If the borrower chooses a longer tenure for repayment of his/her car loan it might make the bank levy a higher interest rate on the loan. This is because the bank considers this as a higher risk factor for defaulting on loan repayment. In order to balance this risk the bank might increase the interest rate charged on the car loan. On the other hand, if you opt for a lower loan tenure, this assures the bank of faster repayment so you can expect a lower interest rate.
    • Income- Applicants who earn an income falling within the income eligibility criteria, especially with a higher income and lower debt outflow, are deemed more creditworthy by Banks. In this situation, the applicant can negotiate with the Bank for a lower rate of interest.
    • Down payment - The percentage of loan margin or down payment that is paid by the borrower out of his own savings also has an ancillary influence on the borrower's car loan interest rate. This is inversely proportional since the higher the down payment the lower is your interest rate on the car loan.
    • CIBIL Score - CIBIL score is one of the most popular credit rating measures undertaken by banks. This score which reflect the credit history of an individual, is generated on the basis of the Credit Information Report. If the CIBIL score of an applicant is high, he/she is considered more creditworthy. Therefore, the chances of getting the car loan approved is very high. This will also influence the bank to lower the rate of interest that is applicable on the loan quantum of your choice.
    • Bank’s Existing Customers - Existing customers of Corporation Bank will have better chances of availing an advantageous car loan package for themselves. Corporation Bank offers various car loan offers for established customers of the Bank at lower rates of interest. For example, those who have term deposits in Corporation Bank have a better chance of availing a car loan faster, at favorable rates of interest.

    How CIBIL scores affect Corporation Bank Car Loan Interest Rates

    Every Bank and NBFC carefully scrutinizes an Individual’s CIBIL Score before sanctioning a car loan to him/her. An individual's credit score helps the bank to determine his/her car loan eligibility and creditworthiness. The credit history of a borrower is reflected in his/her CIBIL score and this is a detrimental factor that influences the interest rate levied on a car loan. The CIBIL TransUnion Score is a 3 digit number which ranges from 300 up to 900. The applicant can negotiate a lower interest rate on his/her car loan if he/she has a high CIBIL Score. This also ensures that the applicant will get a positive response from the Bank with regards to his/her car loan application. Higher scores ensure greater probability of procuring car loans at an attractive rate of interest since the banks consider them to be in the lower risk category.

    Key Pointers on Corporation Bank Car Loan Interest Rates

    • Third Party Guarantee: Along with the applicant, the spouse / or may other individual who the Bank considers acceptable, can vouch for the applicant as a guarantor to the loan.
    • The Bank includes the cost of Registration, Accessories, Insurance charges and Road tax while calculating the overall cost for new vehicles.
    • Floating rate of interest fluctuates periodically since it is linked to the Base Rate
    • Current applicable Base Rate is 9.40%
    • Loan amount up to Rs. 50 lakhs interest is based on Base Rate + 0.55% = 9.95%
    • Loan Amount above Rs. 50 lakhs, interest is based on Base Rate + 1.05% = 10.45%

    Car Loan Reviews

    • Corporation Bank Car Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have my car loan with CORPORATION bank which was taken a month back. The loan amount was 7 lakhs and the interest rate was 8.7% which was satisfactory . The EMI period was 3 years and no processing fee . They did not provide door step service for collecting documents but I had a very smooth loan process here. There are no charges for part payment, and pre closer option .
      Was this review helpful? 0
      , chennai
      Reviewed on Nov 04, 2017
    • Corporation Bank Car Loan
      "Good customer service"
      0.5 4.0/5 "Great!"
      I had applied for the car loan with Corporation Bank, the loan amount was not more than 5 lakhs with the rate of interest of 11% which is nominal when compared to others in market. I submitted all my documents by visiting the bank branch as it is nearby. My loan amount was approved within a week's time.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 04, 2017
    • Corporation Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      It was a wonderful experience with CORPORATION bank for my car loan service the interest rate was 9.8which was fine compare to others in the market the documents where direct the payments where payed directly ,it was a good experience from CORPORATION bank for my car loan service.
      Was this review helpful? 0
      , kottayam
      Reviewed on Oct 30, 2017
    • Corporation Bank Car Loan
      "Great Service"
      0.5 5.0/5 "Blown Away!"
      I had taken my car loan from Corporation Bank, documentation part is very easy and good. Based on my savings account , they had given very good offer for my car loan. Interest rate is 8.5%, It is low when compared with other banks, also they has disbursed my loan within 3 days.
      Was this review helpful? 0
      , kolkata
      Reviewed on Feb 22, 2017
    • Corporation Bank Car Loan
      "Good facility from public sector bank"
      0.5 4.5/5 "Excellent!"
      Being the government organization I got good response from Corporation bank for the car loan when I approached them directly.Within 10 days the loan disbursed. After completing the loan NOC papers were sent on time. Door stop facility was given by the bank executive I just visited the bank only for the final process.
      Was this review helpful? 0
      , delhi
      Reviewed on Jul 01, 2016
    • Corporation Bank Car Loan
      "Better "
      0.5 4.0/5 "Great!"
      The lending rate for the Corporation bank was around 10.25%, also the loan amount got disbursed within eight days of time because of due to personal issues from my end only. Documentation procedures are simple with them and the processing charges were nil with them.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 28, 2016
    • Corporation Bank Car Loan
      "Very fast and smooth process"
      0.5 5.0/5 "Blown Away!"
      It was a pleasant surprise at Corporation bank for my car loan. I thought it would be a long process when I applied. But when I approached them, the process was completed in couple of hours. It was very easy paper work as well. I got a interest rate of 9.25% (floating) where my principal in reduced on a monthly basis. The processing charges was of 3500. Overall an excellent offer and experience.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2016
    • Corporation Bank Car Loan
      "smooth process"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan from corporation bank. The overall process was very fine and smooth. Interest rate was nominal and it was around 10%. It was within a week I got my loan. I really got a very good support from the bank executives and this made the process easier.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 19, 2016
    • Corporation Bank Car Loan
      "Very good services"
      0.5 5.0/5 "Blown Away!"
      I had a earlier experience with Corporation bank for a car loan. The process was good. I got the loan within one week. I am satisfied with the services of the bank. They were quite responsive too. The rate of interest was 10.4%. The processing charge was waived off.
      Was this review helpful? 0
      , karur
      Reviewed on Feb 16, 2016
    • Corporation Bank Car Loan
      "Pretty fast process..."
      0.5 5.0/5 "Blown Away!"
      My car loan was taken from Corporation bank. Since its Government sector but they did not every thing quickly. I got my loan amount within 3 working days. They were really good in process and we can get car loan easily, if we have a proper documents. Best thing is, charges are lesser.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Jan 05, 2016
    • Corporation Bank Car Loan
      "Marginal rates"
      0.5 5.0/5 "Blown Away!"
      Corporation bank is very customer friendly towards the customer in the car loan application.The response provided was quite late. The interest rate applied was marginal rate and the charges applied were very nominal in this car loan.I will recommend about the service to others.
      Was this review helpful? 1
      , bhubaneshwar
      Reviewed on Nov 12, 2015
    • Corporation Bank Car Loan
      "Good bank employees "
      0.5 5.0/5 "Blown Away!"
      With in three days I got my car loan from CORPORATION bank. The bank branch manager was very good to me. I have taken it for the tenure of seven years which is for the loan amount 2.25 lakhs. Mr. Anil kumar prabu, is the manager but he transferred now.
      Was this review helpful? 0
      , kannur
      Reviewed on Nov 05, 2015
    • Corporation Bank Car Loan
      "Rate is less for me.."
      0.5 2.5/5 "Just OK"
      My account is in Corporation bank so I got flat rate of interest and that is very less otherwise it will be very difficult to avail a car loan. Customer service and response is amazing. For me the rate is 8% but to others it will be very high in Corporation bank. Service charge is not there.
      Was this review helpful? 1
      , jodhpur
      Reviewed on Nov 05, 2015
    • Corporation Bank Car Loan
      "Government banks are good..."
      0.5 3.0/5 "Satisfactory"
      Nationalized banks will be good for car loan as they have part payment option. Corporation bank has charged me around 3thousand and that was not told to me. According to me the deducted thing was hidden charge. Customer support is good and the interest rate is less so I took the loan.
      Was this review helpful? 0
      , faridabad
      Reviewed on Oct 23, 2015
    • Corporation Bank Car Loan
      "Best one"
      0.5 5.0/5 "Blown Away!"
      My showroom dealer has recommended me about CORPORATION bank for the car loan. Because they have tie up with this bank so recommended me to me. I have submitted the documents to the dealer itself. Rate of interest is 11% for my car loan.
      Was this review helpful? 1
      , bangalore
      Reviewed on Oct 17, 2015
    • Corporation Bank Car Loan
      "Very excellent.."
      0.5 5.0/5 "Blown Away!"
      Have opted a car loan for the amount of 4.5lkhs and tenure is 60months. File charge is about 1200. From the time I submitted the file to the Corporation bank, within 2 to 3 days the loan got approved where they submitted the DD to the car dealer. No kind of hiccups and they done the process in a short time. Rate of interest was 10.4%.
      Was this review helpful? 1
      , meerut
      Reviewed on Aug 25, 2015
    • Corporation Bank Car Loan
      "Good bank"
      0.5 4.0/5 "Great!"
      I have the car loan with the corporation bank and I got it as the offers which is best. The rate of interest is less than 9% and am happy with them. There is zero processing charges with them. Within 3 days of time I have got the loan and the services are nice.
      Was this review helpful? 0
      , shimoga
      Reviewed on Aug 25, 2015
    • Corporation Bank Car Loan
      "Good process"
      0.5 4.5/5 "Excellent!"
      Corporation bank car loan process was fine. I had applied for the loan by visiting the branch. After applying for the loan I had got the approval letter. Its an ongoing loan, I am left with 1.5 years. My dad was holding an account with the same bank based on which, they had offered this loan. No discounts was given . Overall it was good, its transparent no additional charges being charged its a Nationalized bank and I place my trust in this bank.
      Was this review helpful? 0
      , goa
      Reviewed on Jul 30, 2015
    • Corporation Bank Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      As the dealer had a contract with Corporation bank, I did get the car loan from them. Interest rate is 10.85% with 1200 as processing charges. Overall I liked the services and everything was quite satisfactory as well.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 24, 2014
    • Corporation Bank Car Loan
      "Great"
      0.5 4.0/5 "Great!"
      I have taken a car loan from Corporation bank this month. I had a discussion with the bank multiple times and we were negotiating the rate of interest couple of times. They called me multiple times and they convinced me giving the suitable rate of interest. I met the manager of the bank personally and they did reduce the interest rate upto 10.65%. There was a slight delay in processing due to some holidays in between however they managed to disburse my loan within 15 to 17 days of time.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Oct 20, 2014
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