• Custom Free
     

    Check Eligibility

  • Karnataka Bank Car Loan Interest Rates

    Loading your search...
  • Karnataka bank offers a car loan scheme to individuals who wish to buy new cars or used cars, at interest rates ranging from 9.60% to 14.25%. The interest rates differ based on the profession of the applicant, type of car, income of the individual loan amount, relationship with the bank, and so on.

    Karnataka Bank Car Loan

    Features New Car Loan/Used Car Loan

    Interest rates

    9.6% to 14.25% p.a.

    Loan Tenure

    Up to 84 months for

    Quantum of Loan

    • New vehicle: Up to Rs.75 lakh
    • Old vehicle: Up to Rs.20 lakh

    Processing Charges

    Nil – Rs.1,000

    Other Charges

    Foreclosure Charges

    2% of the outstanding principal balance.

    Issuance of NOC

    Rs.250 per certificate

    Delayed EMI payment

    Rs.250 – Rs.500

    Credit score charges

    Rs.100

    Factors affecting Karnataka Bank Car Loan Interest Rates

    Given below are some of the elements that affect the car loan interest rate offered to loan applicants:

    • Profession: The car loan interest rates vary based on whether you belong to the salaried class, non-salaried class, or other professions. The bank has laid down the rates for the different employment categories.
    • Loan amount: The amount being borrowed by the bank, whether it is below Rs.75 lakh or below Rs.20 lakh, is taken into consideration when the bank fixes an interest rate.
    • New/existing bank customer: Existing Karnataka Bank customers are typically offered an car loan interest rate which is 0.10% p.a. lower than the rate offered to new customers for the same loan.
    • New/used car: The interest rate offered to you also depends on whether you wish to finance a brand new car or a used car. The rates will vary accordingly.
    • Credit score: Banks always look into the credit score of a loan applicant before approving the loan. Only applicants with a good credit score i.e. a score above 700 will be given a loan. Also, lower the credit score, chances are the interest rate offered will be higher.

    FAQs

    1. Do Karnataka Bank car loan interest rates depend on the type of car?
    2. Yes, banks do consider the car model being financed. Karnataka Bank looks at whether it is a new car or a used car. Additionally, loans for electric cars are come with separate interest rates, typically lower than those offered for petrol or diesel cars.

    3. Is there a margin for the car loan scheme?
    4. Yes, the bank has fixed a margin for new vehicles as 15% and for used vehicles as 25% to 30%.

    5. Is it necessary to have a third-party co-obligator?
    6. Yes, in cases where an individual has applied for the loan, a third-party co-obligator or guarantor is required.

    7. Can I get a loan after purchase of the vehicle?
    8. Karnataka Bank offers car loans for the purchase of new as well as used cars which are not older than 5 years starting from the date of registration of the vehicle.

    9. Is there an age criteria to apply for the loan?
    10. Loan applicants are required to be at least 18 years of age to apply for a car loan with Karnataka Bank.

    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.

    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.