|Rate of Interest(fixed)||9.95% - BR + 0.35%|
|Processing Fee||During festival offer period, fee is waived in full|
|Loan Amount||Above Rs. 1 lakh|
|Loan Tenure||12 months to 60 months|
|Minimum annual income required||Rs 1,80,000|
|Servicing of EMI would be through||ECS, Standing Instruction|
|Foreclosure charges||Charges allowed only 6 months after the loan disbursement without penalty from own source. If within 6 months in case of disbursement or balance transfer, 1% of balance outstanding along with applicable charges is charged.|
|Documentation Charges||As per actual cost|
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.
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.
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.
|Year||Total Payment||Balance||Principal Portion||Interest Portion|
|2015||Rs. 48,232||Rs. 4,60,013||Rs. 39,387||Rs. 8,245|
|2016||Rs. 1,92,927||Rs. 3,07,603||Rs. 1,52,411||Rs. 40,516|
|2017||Rs. 1,92,927||Rs. 1,38,647||Rs. 1,68,955||Rs. 23,971|
|2018||Rs. 1,44,695||0||Rs. 1,38,647||Rs. 6,048|
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.
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.
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.
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
A minimum annual income of Rs. 1,80,000 is necessary.
IDBI Bank offers loans for most type of passenger and sports-utility vehicles.
Yes, IDBI Bank has tie-ups with certain dealers and manufacturers of vehicles to ensure a smooth deal.
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