• Indian Bank Car Loan

    Indian Bank offers a car loan, known as IB Vehicle Loan, to its customers with interest rates starting from 8.45% p.a. (new cars) and a repayment tenure of up to 84 months. The interest rate for used car loans starts from 11.40% p.a.

    Key Features of the IB Vehicle Loan

    • Car loans are offered at attractive interest rates.
    • Repayment tenure of up to 84 months. In the case of used cars, depending on the age of the car, the repayment tenure may be up to 60 months.
    • Maximum loan of up to Rs.2 crore may be provided.
    • The used car must not be more than 3 years old and a reputed automobile engineer should certify the vehicle.
    More

    IB Vehicle Loan Fees and Charges

    Components Charges
    Processing Fee 0.230% of the loan amount (Maximum of Rs.10,236)
    Margin
    • New Vehicle: 15%
    • Used Vehicle: 40%

    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?
    2. 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.

    3. Is it possible to sell the car before the loan can be repaid?
    4. 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.

    5. Can I foreclose the car loan?
    6. Yes, it is possible to foreclose the car loan. However, banks may levy a foreclosure charge.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Indian Bank Car Loan Reviews

    • Indian Bank Car Loan
      "Good Experience"
      0.5 4.0/5 "Great!"
      Indian Bank service is good, they just taken 2 days of time to sanction the car loan . Because I am an existing customer, but still the bank charged more interest around 9.5% for the loan amount of Rs. 4.5 lakhs with the loan period of four years.
      Was this review helpful? 3
      , itanagar
      Reviewed on Apr 14, 2019
    • Indian Bank
      Indian Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this Car loan a while back and the experience has been pretty good where the process did not took much time to complete. The loan amount and the interest rate with them had been fine and they had not taken any charges such as processing fee.
      Was this review helpful? 1
      , chennai
      Reviewed on Mar 26, 2019
    • Indian Bank Car Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      Got my car loan from Indian bank , where the rate of interest is high of promising one They took few days for approval and documentation. Where i use to pay monthly through ECS for 5 years . They issued the Demand draft after that only they asked for sign for the approval . And there are no processing fees.Overall, I am satisfied with CAR loan from Indian bank.
      Was this review helpful? 3
      , bangalore
      Reviewed on Jul 18, 2018
    • Indian Bank Car Loan
      "Parameters are very rigid"
      0.5 1.0/5 "Really Bad"
      Parameters are very rigid as Indian bank does not deviate from its norms. They always want to to be on the safer side,even though i hold my salaried account with them they are not considering my profile which is unfair they are not giving a chance to me. They simply stated that credit score is not good there by refused to offer the loan
      Was this review helpful? 0
      , coimbatore
      Reviewed on Sep 30, 2017
    • Indian Bank Car Loan
      "Very good services"
      0.5 4.0/5 "Great!"
      I have taken a car loan from Indian Bank and the services are good. The process was quick and the documentation was not much and manageable. The interest rate and processing charges was also pretty reasonable. I got the loan on time and the after loan process is good.
      Was this review helpful? 0
      , kolkata
      Reviewed on Sep 26, 2017
    • Indian Bank Car Loan
      "Excellent service"
      0.5 3.5/5 "Pretty good"
      I got the car loan with the interest rate of 9.4% and I have submitted all my required documents, within a day time I got the loan from Indian bank. My friend is employed in Indian bank through his referral, I got the loan with INDIAN Bank. The rate of interest is very much nominal with INDIAN Bank.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jul 07, 2017
    • Indian Bank Car Loan
      "Very good service "
      0.5 4.0/5 "Great!"
      It was a good experience with Indian Bank related to the car loan application process.They have processed the loan within a days time.The interest rate applied was quite common.They have not applied any additional charges in the loan process.
      Was this review helpful? 4
      , chennai
      Reviewed on Mar 15, 2016
    • Indian Bank Car Loan
      "Perfect Bank"
      0.5 5.0/5 "Blown Away!"
      Indian Bank was perfect for my car loan. Though the process was long. It took 15 days. But I was given what they have promised. There was no hidden charges or a increase in rate of interest. It was a excellent experience.
      Was this review helpful? 4
      , chennai
      Reviewed on Nov 06, 2015
    • Indian Bank Car Loan
      "Better service"
      0.5 4.0/5 "Great!"
      My car loan was approved from INDIAN bank in the month of July, 2015. Since I am holding my savings account with them they were really helpful. They have offered me 10.50% interest rate for my car loan with zero processing fee. Their customer service team are really supportive.
      Was this review helpful? 2
      , pune
      Reviewed on Aug 28, 2015
    • Indian Bank Car Loan
      "Good"
      0.5 4.0/5 "Great!"
      Interest rate and processing fee charged were very good enough.The car loan disbursement was done within 10 days as the bank manger was my friend. Documentation was good but all the process was completed by myself by visiting the bank directly. No customer service is given by the bank. Only the eligible enough customers can approach the bank for the process.
      Was this review helpful? 2
      , rajahmundry
      Reviewed on Jun 29, 2015
    • Indian Bank Car Loan
      "Very friendly. "
      0.5 5.0/5 "Blown Away!"
      I never thought that a government bank would be so friendly. The staff were very kind and they assisted me in all the documentation procedures and the processing was very fast. I took my loan in a branch in Vellalore and the branch was pretty new. The premise was very neat.
      Was this review helpful? 4
      , coimbatore
      Reviewed on Nov 25, 2014
    • Indian Bank Car Loan
      "Very friendly. "
      0.5 5.0/5 "Blown Away!"
      I never thought that a government bank would be so friendly. The staff were very kind and they assisted me in all the documentation procedures and the processing was very fast. I took my loan in a branch in Vellalore and the branch was pretty new. The premise was very neat.
      Was this review helpful? 1
      , coimbatore
      Reviewed on Nov 25, 2014
    Common Loader Icon
    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.