IDBI Bank Car Loan Interest Rates

Published On : 2021-06-18

IDBI Bank Car Loan interest rate for new car loans ranges from 9.30% to 9.90%. The bank provides financing only for purchasing new cars. The interest rate on your IDBI Car Loan will depend on factors such as your credit score, income, down payment, loan period, and so on.

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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, help 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 criterion 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 - Another significant determinant considered is the tenure within which the customer repays his loan. Generally, it is seen that most applicants 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. 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.
• Relationship with the Bank: A previously established relationship with the bank is an added benefit. Lenders typically provide offers and benefits for customers who have a prior working relationship with them.
• Down Payment: This 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.

FAQs

1. Does IDBI Bank have any tie-up with car manufacturers for providing car loans?

Yes, IDBI Bank has tie-ups with automobile makers and auto dealers. These tie-ups allow the bank to give you good car loan deals.

2. In order to be eligible for an IDBI Car Loan, what should my minimum annual income be?

IDBI Bank requires a car loan applicant to be earning at least Rs.2,40,000. This is applicable to both salaried employees and self-employed individuals.

3. How can I make my EMI payments for my IDBI Car Loan?

You can pay your car loan EMIs via ECS or Standing Instruction.

4. Am I allowed to make a part payment of my IDBI Car Loan?

Yes, the bank allows you to part pay or foreclose your IDBI Car Loan. If you do this from your own source 6 months after your loan is disbursed, you will not have to pay any penalty. If you part pay or foreclose your loan within a period of 6 months, then you will be asked to pay 1% of the outstanding amount along with charges that are applicable.

5. How many times can I make a part payment of my IDBI Car Loan?

In a year, you will be allowed to part-pay your loan only 3 times. Moreover, there will need to be a gap of 90 days between each part payment.

6. What is the repayment mode for the IDBI Car Loan?

You can repay the IDBI Car Loan in equated monthly instalments (EMIs), which include interest as well as principal.