IDBI Bank Car Loan Interest Rates

Overview About IDBI Bank Car Loan

Easy to avail loans, quick documentation and no other hassles in the process, IDBI Bank strives to provide quick and accessible loans to those looking to buy their own set of wheels. Founded in 1964 with headquarters in Mumbai, IDBI Bank is a banking and financial service company that is owned by the Government of India. IDBI was mainly started in order to provide financial support to the Indian industry which was taking its first steps back then. Auto Loans by IDBI is simple, accessible with a flexible tenure of upto 7 years. These loans can be availed against the applicant’s income and the eligibility criteria as defined by the bank.

IDBI Bank Car Loan Interest Rates 2017

Car Loan interest rates vary every year based on a number of factors. Two of the main concerns for customers who apply for a loan are the interest rates and tenure offered. IDBI Bank offers a flexible loan repayment tenure of upto 7 years and a fixed interest rate of 9.95%. Loans are available for a wide variety of cars such as S.U.V’s, sedans etc. IDBI Bank has also tied up with certain manufacturers and dealers which is useful for applicants who want more information on the type of car they are leaning towards buying.

IDBI Bank Car Loan Rates Table

How to Calculate Interest Rate on my IDBI Bank Car Loan?

Customers can repay their IDBI Bank car loans through Equated Monthly Installments or EMIs. Essentially an EMI consists of the principal amount along with the interest amount. During the initial term of the loan repayment tenure, a significant portion of the EMI consists of the amount paid as interest, however, there is an increase in the principal amount and a reduction in the amount of interest to be paid as the loan tenure progresses.

The formula for calculating the EMI on a car loan is -

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

Where E - Monthly EMI, P- principal amount, r - rate of interest per month, n - number of years.

For an amount of Rs. 1,00,000 at an interest rate of 10.35% with a loan tenure of 1 year, the total payment would come up to approximately Rs. 1,04,791 with Rs. 8733 as the EMI amount.

For example, the following will be the amortization table for a car loan of Rs. 5,00,000 for a period of 3 years at an interest rate of 10.35% from IDBI Bank.

Factors affecting IDBI Bank Car Loan Interest Rates

There are numerous factors that have an impact on the interest rates for an IDBI Bank car loan. These in turn helps to determine the loan amount given to the prospective applicant, along with the interest amount charged. Some of these factors are given below.

• Income - The applicant’s income is important. The criteria for eligibility differs for every category of employed individuals. For example, if the applicant is self employed then the minimum income required differs as compared to a salaried individual.
• Loan Duration/Tenure - Another significant determinant considered is the tenure within which the customer repays his loan. Generally,it is seen that most opt for tenures that are longer as the EMI amount to be paid every month is less, however customers need to remember that with longer tenures, interest rates are also more and therefore it would be advisable to opt for a short loan tenure.
• CIBIL Scores - The TransUnion score is given a lot of importance by bankers and financial institutions in order to understand a person’s eligibility for a certain loan. This score is given by the Credit Information Report and scores more than 750 are preferred by those providing loans.
• A previously established relationship with the bank is an added benefit. IDBI Bank has various offers and benefits for customers who have a prior working relationship with IDBI Bank.
• Down Payment is a factor which has an impact on the interest rate provided by the bank.Customers who pay a higher down payment stand a greater chance of availing low interest rates.

How CIBIL scores affect IDBI Car Loan Interest rates

Credit Information Bureau India Limited or CIBIL summarizes and maintains a person’s credit history and also information related to his/her loan payments and from this, a score is generated known as the CIBIL TransUnion Score. This is a 3 digit score that varies from 300 to 900. This is a significant factor taken into consideration by banks and financial institutions while determining the eligibility of the applicant and accepting the loan request. The higher the scores, greater are the chances of receiving loans at a reasonable interest rate. Those with high CIBIL scores are also considered to be less risky in terms of loan repayment and can therefore procure loans easily compared to those with low CIBIL scores.

FAQ’s about IDBI Car Loan Interest Rates

• How can one apply for an IDBI Bank Car loan?

  Customers can apply for an IDBI Bank car loan in various ways. They can either visit the closest IDBI Bank or call the phone banking numbers, post which an IDBI representative will revert back.

• What are the documents required while applying for a car loan from IDBI Bank?

  There are various documents needed for the loan application -

  ~Age Proof - Passport,School Leaving certificate, Election ID Card, Driving License, Birth Certificate, PAN Card, LIC Policy.

  ~Address Proof - Election ID Card, Passport, Driving License, Form 18/Sales Tax RC/ITR, Electricity Bill/ Telephone Bill, Employers Letter, Title Deed of Property/Rental Agreement.

  ~Identity Proof - Passport, Election ID Card, PAN Card, Employer’s ID Card, Photo Credit Card

  ~Income Proof - Latest 2 months salary slips, Bank Statement reflecting salary credits for 4 months, Form 16/ITR for previous 2 years,

  ~Bank Statement - Balance Statement and ITR for previous 2 years, Income statement, Bank statement for 6 months

• What is the minimum annual income that is required for a customer to procure a IDBI Bank Car Loan?

  A minimum annual income of Rs. 1,80,000 is necessary.

• What kind of vehicles does IDBI Bank provide loans for?

  IDBI Bank offers loans for most type of passenger and sports-utility vehicles.

• Does IDBI Bank have tie-ups with any manufacturers?

  Yes, IDBI Bank has tie-ups with certain dealers and manufacturers of vehicles to ensure a smooth deal.