Karnataka Bank Car Loan Interest Rates

Eligibility Criteria

The eligibility criteria that must be met to avail a car loan from Karnataka Bank are mentioned below:

1. You must be at least 18 years old.
2. NRIs can avail the loan.
3. Agriculturists who have agricultural properties can avail the loan.
4. You must have filed ITR.
5. Societies, associations, trusts, firms, and companies.

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:

1. 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.
2. 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.
3. New/existing bank customer: Existing Karnataka Bank customers may be offered an car loan interest rate which is lower than the rate offered to new customers for the same loan.
4. 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.
5. 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.

A good credit score can help you secure lower interest rates on loans and credit cards.

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