Indian Bank Car Loan

IB Vehicle Loan Fees and Charges

IB Vehicle Loan Eligibility

The below-mentioned individuals are eligible to apply for the car loan provided by Indian Bank:

• Salaried employees
• Professionals
• Businessmen
• Self-employed individuals
• Indian Bank staff
• Non-Resident Indians (NRIs)
• Employees of another bank (However, a No Objection Certificate must be provided showing a working experience of at least 3 years)

In the case of NRIs, a car loan will be provided only if the below-mentioned conditions are met:

• The minimum monthly income must be at least Rs.40,000.
• A resident family member (son or daughter, mother, father, or spouse) must provide a guarantee.

Factors Affecting IB Vehicle Loan Interest Rates

The below-mentioned factors may determine the interest rates of the IB Vehicle Loan:

• Debt-to-Income Ratio: Your debt-to-income ratio is a vital factor that is considered when the car loan interest rate is decided as it determines whether you can pay the EMI on time. In case your debt-to-income ratio is high, the interest rate will be high, or your application will be rejected.
• Vehicle Model and Age: In the case of a car loan, the vehicle acts as security. In the case the EMIs are not paid, the bank or NBFC will seize the car. Therefore, the model and age of the car are considered when determining the interest rates. New cars from a reputable manufacturer come with lower interest rates when compared to older models. Used cars also come with high interest rates since the value of the car depreciates with age.
• Tenure: NBFCs and banks provide low interest rates in case the tenure is long. However, in case of a loner tenure, you will end up paying more interest. Even though the interest rates are high for a shorter tenure, the overall amount that you pay for the car will be low. Therefore, it is vital that you check the EMI before opting for the repayment tenure.
• Steady Income: Your income is checked when the bank or NBFC determines the interest rate. Low interest rates are provided for individuals who have a stable occupation and a steady income.
• Make a high down payment: Banks and NBFCs provide lower interest rates in case you make a high down payment since the principal loan amount that is availed reduces. Making a high down payment also shows lenders that you are capable of repaying the loan.
• Good credit score: Your credit score is one of the most important factors that is considered when determining whether you are eligible for a car loan. In case your credit score is good, lenders offer car loans at low interest rates. Lenders may reject the car loan application or offer the loan at high interest rates if your credit score is low.
• Relationship with Bank: In case you have a good relationship with your bank, they may provide the car loan at a low interest rate. It is important that you check with your current bank before applying for a car loan from another lender. You can also negotiate with the current bank to reduce the interest rates as well.

Car Loan EMI Calculator

You can use BankBazaar’s car loan EMI calculator in order to calculate the monthly payments. The calculator is simple is use and saves time. Some of the details that must be entered to calculate the EMI are the tenure, loan amount, interest rate, and processing fee.

How to Apply for an IB Vehicle Loan

The two different methods by which you can apply for an IB Vehicle Loan are mentioned below:

Through BankBazaar.com

• Visit the official website of BankBazaar.
• Click on ‘Loans’.
• Click on ‘Car Loan’.
• Under the Indian Bank car loan scheme, click on ‘Explore’.
• You can check the features and benefits of the car loan before applying for it.

By Visiting Indian Bank

You can visit the nearest Indian Bank branch and submit the relevant documents to apply for a car loan.

Documents Required

The list of documents that must be submitted when you apply for the car loan is mentioned below:

• Application form
• Passport-size photograph
• Identity proof such as Driving License, Passport, Voter’s ID, or PAN Card
• Address proof such as Voter’s ID, Property Tax Receipt, Electricity Bill, Passport, or recent Telephone Bill
• Business address proof
• Employment proof
• Salary certificate
• Quotation of the vehicle that you want to purchase
• Copy of your driving license
• Bank statement for the last 6 months
• Income Tax Returns for the last three years
• In the case of self-employed individuals, businessmen, and professionals, the Balance Sheet for the previous three fiscal years must be provided
• Income proof such as interest on investment, rent, etc.

FAQs

1. Should I provide any security or collateral when I avail a car loan?

In case the value of the car is less than Rs.25 lakh, collateral or security need not be provided. However, if the value of the car is more than Rs.25 lakh, security must be provided.

2. Is it possible to sell the car before the loan can be repaid?

No, you cannot sell the car before the loan is repaid. An NOC is required to sell the car, and banks provide one only once the loan is paid.

3. Can I foreclose the car loan?

Yes, it is possible to foreclose the car loan. However, banks may levy a foreclosure charge.