IndusInd Bank offers affordable vehicle loans at competitive interest rates depending on the model of the vehicle you wish to purchase. However, it is important to keep in mind that the interest rate you are ultimately offered for your car loan is a floating rate of interest and will depend on market fluctuations.
|New cars: 10.65% p.a. to 15.5% p.a. New multi-utility vehicles (MUV): 10.6% p.a. to 16% p.a. Used cars and MUVs: 12% p.a. to 18% p.a.|
|Loan processing charges||0.5% of the loan amount (non-refundable), with a minimum payment of Rs.2,500|
|Documentation charges||Rs.2,000 (non-refundable)|
|Loan tenure||Minimum tenure: 12 months Maximum tenure: 60 Months|
|Loan handling charges||Up to 5% of the loan amount|
|Stamping charges||As per the Stamp Act of the State (non-refundable)|
|Loan cancellation charges||Rs.1,500 per cancellation|
|Overdue monthly interest||Up to 36% p.a., compounded on a monthly basis|
|Swap charges - replacement of PDCs and repayment modes||Up to Rs.500 per swap, per instance|
|Foreclosure charges||2% to 5% of the outstanding principal amount|
|Duplicate NOC issuance charges||Rs.500 per vehicle, per issuance|
Under the retail banking umbrella, IndusInd Bank offers excellent auto financing solutions for purchasing private and commercial vehicles. With a wide range of vehicle models and brands covered, you can use an IndusInd Bank vehicle loan to buy your dream car or you can expand your business by taking a car loan for commercial use.
Taking a car loan from IndusInd Bank is quite convenient since the bank promises a hassle-free documentation process, fast processing of your application, and complete transparency. You get to choose from tenures ranging from 12 months to 60 months. This way, you can make sure that the car loan you take is best suited to your needs.
Your car loan is repaid in equated monthly instalments (EMI). An EMI is the amount that you have to pay each month to IndusInd Bank once you take a vehicle loan. Your EMI includes both, the principal amount and the interest rate.
When you make you repayments, you will realise that in the beginning, a major portion of your EMI goes towards paying the interest. As the loan tenure progresses, the amount you pay towards servicing the interest decreases and a major portion of your instalment goes towards servicing the principal amount.
Why does this happen?
Well, as you make payments each month, the amount you owe as principal decreases. Since interest is calculated on the outstanding principal, the interest slowly decreases over the course of the loan.
You can use BankBazaar’s car loan calculator to help determine the EMI you need to pay each month. All you need to do is put in the loan amount, tenure, and the interest rate applicable. You also have the option of choosing whether you want to make prepayments on your loan. Once you put in the required details, hit calculate. The calculator will provide you with the EMI you need to pay each month as well as an amortisation table which details how much of your EMI goes towards paying off the principal and how much goes towards interest payments.
Let’s use an example to understand this better. If you take a car loan of Rs.4 lakh and it is to be repaid in 36 months (February 2019 – February 2022) at an interest rate of 11% p.a. from IndusInd Bank, the EMI you need to pay each month is Rs.13,095.
The amortisation schedule will look like this:
|Year||EMI amount (Rs.)||Interest amount (Rs.)||Principal amount (Rs.)||Balance due (Rs.)|
The total interest to be paid towards an IndusInd Bank Car Loan of Rs.4 lakh will be Rs.71,440.
There are multiple factors that affect the interest rate of your car loan. Some of these factors are:
Your CIBIL score is one of the most important factors that will be considered by the bank before they approve your car loan application. If your credit score is good, the bank will be more willing to offer you a favourable interest rate. A poor score may lead to you having to pay a high rate of interest or it could also lead to your loan application being rejected.
At the end of the day, if you meet the required eligibility criteria and have a good credit score, getting a car loan from IndusInd Bank will not be too much of a problem.
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