• IndusInd Car Loan Interest Rates

    IndusInd Bank offers car loans for new cars as well as used cars at interest rates ranging from 7,5% p.a. to 20% p.a. The interest rate can differ from applicant to applicant based on whether the car is new or used, the model of the car, the income of the applicant, the profession of the person, and so on.

    Features New Car Loan Used Car Loan

    Interest rate

    7.5% p.a. to 15% p.a.

    10% to 20% p.a.

    Loan tenure

    Up to 60 months

    Up to 60 months

    Processing charges

    Up to 5% of the loan amount

    Quantum of finance

    Up to 100% finance

    Other Charges

    Documentation charges

    Up to 5% of the loan amount

    Overdue monthly interest

    Up to 5% of the loan amount

    Foreclosure charges

    2% to 5% of the outstanding principal amount

    Duplicate NOC issuance charges

    Rs.500 per vehicle per issuance

    Loan cancellation charges

    Rs.1,500 per cancellation

    Stamping charges

    As per the Stamp Act of the State

    Factors affecting IndusInd Bank Car Loan interest rates

    The car loan interest rate offered to you by the bank depends on several factors, some of which are mentioned below:

    • Loan amount: The bank will decide the interest rate to be offered based on the amount you choose to borrow. Higher the amount, higher the chances of getting a higher rate of interest.
    • Loan tenure: The longer the tenure of the loan, the lower the rate of interest. However, this also means that you will end up paying more in terms of interest. On the other hand, a shorter loan tenure means a higher rate of interest but the total amount of interest you end up paying is much lower.
    • Debt-to-income ratio: Your debt-to-income ratio also plays an important role in deciding the rate of interest you are charged for your car loan. The lower the number of existing debts and debt amounts, the higher the chance of getting a loan approved at an affordable rate of interest.
    • Age and make of the vehicle: The bank will run a check of the make and model of the car to ascertain its current value as well as resale value in the future. The age will also be taken into consideration while approving as well as determining the interest rate to be charged.
    • Discounts offered by dealers and manufacturers: IndusInd Bank has tie-ups with major car dealers and manufacturers and can help you get the best deal for your car. You can buy the car for an affordable price and get a car loan for a good rate of interest.
    • Relationship with the bank: IndusInd Bank could offer a lower rate of interest if you are a longstanding customer who has been timely with payments related to loans or other credit facilities.


    1. Who can act as the co-applicant of the loan scheme?
    2. Any person who can repay the loan according to the rules laid down by the bank and resides in the same city as the applicant can act as the co-applicant. The requirement could vary from applicant to applicant.

    3. Do I have to provide security for this loan scheme?
    4. The car being financed is the security for the loan and it has to be hypothecated to IndusInd Bank after the loan is sanctioned but before the loan amount is disbursed.

    5. Do I have to open an account with the bank to avail the car loan?
    6. It is not mandatory for you to open an account to get a car loan. However, you can avail many services offered by the bank if you have an account with the bank.

    7. Can I get the loan without furnishing my income documents?
    8. Yes, IndusInd Bank can process a car loan without the applicant providing income documents. The sales team will tell you about a special scheme that does not require income proof.

    9. How can I repay the loan?
    10. You can repay your car loan by giving post-dated cheques in favour of IndusInd Bank Ltd., by providing standing instructions, or with ECS through other banks.

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