Karnataka Bank Car Loan

Karnataka Bank Limited is a private sector banking institution based in the coastal city of Mangalore in Karnataka, India. As a premier bank, they have developed comprehensive range of customized products & services suitable for every kind of market, trade or perceived need - Business or Personal. They include, borrowing facilities, deposits, providing optimum returns on surplus funds or helping with overseas transactions. The products they offer to you are honest in intent and quality in content. It offers you the individuality with respect to your needs and to your earnings. And most of all, it comes with understanding you and your special individual needs. Continue reading to view more details about this loan.

At least 21 years old

Less than 60 years old

Salaried or self-employed
with regular income

Earn more than the minimum
income required

Salaried with Regular Income

Loan capped @
85% of the ex-showroom price

EMIs of other loans lower
your eligibility

Pay off your credit card bills

Choose longer tenure loan up to 7 years

Overview of Car Loans from Karnataka Bank

A car is a reliable asset which helps you save money in the long-run since it is more affordable than paying for a rented car, hiring a cab or even using public transport systems. A car offers you and your family convenience and luxury compared to travelling in a congested bus or auto. It is also reliable in terms of ease of access, especially in times of emergency. With the availability of various car loan schemes from multiple banks and financial institutions in India, owning a car has become much easier.

Karnataka Bank is a leading scheduled commercial bank in India, which was established in 1924. It currently has 684 branches spread across India and a customer base of 6.7 million people. One among it’s wide portfolio of financial products and services, is the KBL car finance. This car loan scheme provides loans for both new and used cars and is available at an affordable interest rate and various other exclusive features.

Why choose Karnataka Bank Car Loans?

Karnataka Bank car finance is offered to an eligible individual, for the purchase of new cars/ used cars at affordable interest rates. It has no hidden charges, lower fees and charges, flexible loan repayment options, etc., which makes it a much sought-after loan option.

Features of Car Loans from Karnataka Bank

• The loan amount for a new car loan is maximum 85% of the on-road price of the vehicle (includes cost of vehicle, Road Tax, motor insurance, and registration charges), subject to a maximum of Rs.75 lakh.
• The loan amount for a used car loan is maximum of Rs.20 lakh.
• The maximum loan tenure applicable on purchase of a new vehicle is a period of up to 84 months (7 years) and 34 months for a used vehicle.
• Margin requirement of Karnataka Bank new car loan is 15% of the on-road price of the vehicle and for an old car loan is 25-30% of the value of the second-hand vehicle.
• The security that has to be offered to the Bank in order to avail the car loan is the hypothecation of vehicle to be purchased or a third party guarantee/co-obligation.

Karnataka Bank Car Loan Interest Rates

All the loans which are sanctioned post April 2016 has to follow the new lending rate system – MCLR (Marginal Cost Based Lending Rate). This is a tenure based benchmark. Existing Karnataka Bank car loan borrowers have the option to continue with the interest based on the Base Rate or to migrate to the new MCLR lending rate system. MCLR rates are subject to change from the next reset date, as per RBI regulations.

Eligibility Criteria for Karnataka Bank Car Loan

• The age limit for borrowers is 18 years and above.
• Applicants must be an income tax assessee.
• Agriculturists with properties can apply for a car loan from the bank.
• In addition to salaried and self-employed individuals, companies, firms, trusts, societies, and associations can avail a car loan from the bank in the name of the business or its managing directors, partners, trustees, executives, and presidents.
• Non-Resident Indians (NRIs) are also eligible for a car loan from the bank.

Karnataka Bank Car Loan Eligibility Calculator

To find out whether you meet the eligibility criteria for a car loan from Karnataka Bank, use the free online car loan eligibility calculator. Visit the bank website and click on the 'Apply Online' tab. You will be directed to a page with the eligibility calculator. Fill an online form with details such as type of loan, resident type, name, occupation, income, gender, date of birth, purpose of the loan, etc. Click on the 'Get Loan Quote' button and find out how much car loan you are eligible for from Karnataka Bank. Checking car loan eligibility beforehand can help you avoid loan rejection which in turn, can affect your credit score.

Document required to apply for Karnataka Bank Car Loan

Applicants are required to submit the duly-filled and signed application form along with the following documents to the bank in order to complete the application process for a Karnataka Bank car loan:

• Photo ID proof (PAN Card, Aadhaar Card, Passport, Voter ID, Driving License)
• Address Proof (Utility bills, Ration Card)
• Last 2 years’ Income Tax Return, Form 16
• Salary slips of 1 year in the case of salaried applicants
• Quotation from the authorized showroom

How to apply online for a Karnataka Bank car loan?

Rather than wait in queue at a bank branch to interact with a bank representative with regard to your car loan requirement, you can visit the bank website and apply for it online from the comfort of your home or office. First, check your car loan eligibility before applying for it. After ensuring you meet the eligibility criteria set by the bank, click on the 'Apply Online' tab on the right-hand side of the page. Submit a duly-filled car loan application form online. The necessary age, identity, income, and address proof documents can be uploaded online as well. The bank will take 2 to 4 working days to process your application.

How to track Karnataka Bank car loan status?

Visit the bank website to check your car loan application status. Click on the ‘Check Status’ tab on the left-hand side of the page. Enter your tracking number and email ID or mobile number. Then click on the 'Show Details' button. Your Karnataka Bank car loan status will be displayed on the screen or sent to you via email or text message to your mobile. You can also visit the bank branch at which you applied for a car loan to check your application status.

Karnataka Bank Branch Locator

You can apply for a car loan at one of the branches of Karnataka Bank. In order to locate the nearest bank branch in your locality, use the online ‘Branch Locator’ that is available on the bank website. Just enter your city and state into the tool and click on the ‘Search’ button. You will get the address, phone number and map directions to the nearest bank branch.

How to calculate EMI on Karnataka Bank Car Loans?

By calculating your equated monthly installments (EMIs) in advance, you can make important decisions about your available car loan options as well as execute a good financial plan/ budget for yourself. Since it is very hard to manually calculate your repayment options and amortization schedule, a potential borrower can use the online car loan EMI calculator offered by BankBazaar.com. This tool can be found under the ‘Finance Tools’ section on BankBazaar’s main page. The next few steps involve keying-in vital information such as the desired amount of car loan, interest rate, tenure and processing fee, either manually or by using the sliders and then clicking on “Calculate”. Within a few seconds you can access your EMI details as well as your amortisation schedule. This tool is available to all users free of charge and can be used multiple times to arrive at an EMI value that suits your budget. Ultimately, a car loan EMI calculator assists a customer to choose the right car loan option for himself/ herself.

Karnataka Bank Car Loan EMI Calculator

Calculating the EMI of your proposed car loan can help you choose an affordable loan amount and a suitable loan tenure. Finding out how much your car loan will cost you on a monthly basis can help you create a monthly budget in order to maintain a low debt-to-income ratio. A high debt-to-income ratio wherein your EMI is more than your income can result in you defaulting on your car loan. To avoid such a scenario, it is advisable to calculate your proposed car loan EMI before applying for it. The official website of Karnataka Bank offers a free online car loan EMI calculator that you can use any number of times for free of charge. Karnataka Bank Car Loan EMI Calculator is simple and easy to use. Just enter your proposed car loan amount, loan tenure, and interest rate into the tool and click on the ‘calculate’ button. You will get a breakdown of your EMI, interest payable, and the total cost of the loan.

Karnataka Bank Car Loan FAQs

1. What types of four wheelers can be purchased with Karnataka Bank Car Loan?

   All kinds of new four wheelers can be purchased using Karnataka Bank Car Loan. Second-hand/used/pre-owned vehicles not more than 5 years from its date of registration, can also be purchased with Karnataka Bank Car Loan.

2. What is the eligibility criteria to apply for a Karnataka Bank Car Loan?

   The following class of customers can apply for a Karnataka Bank Car Loan.

   • The customer must be an income tax assessee
   • A company, association, trust, firm, societies availing the loan in the name of its executive, managing partner, managing director, president, secretary, managing trustee or its name
   • Non Resident Indians
3. What is the maximum loan quantum that will be offered for new four wheelers to be purchased with Karnataka Bank Car Loan?

   New car loan - maximum 85% of the on-road price of the vehicle (includes cost of vehicle, Road Tax, motor insurance, and registration charges), subject to a maximum of Rs.75 lakh.

4. I am planning to purchase an used vehicle with Karnataka Bank Car Loan. What is the maximum loan quantum that will be offered?

   The loan amount for a used car loan is maximum of Rs.20 lakh.

5. Will costs of insurance and road tax will be included when computing the loan quantum for Karnataka Bank Car Loan?

   No, costs of insurance and road tax will not be included when calculating the loan quantum for Karnataka Bank Car Loan.

6. What is the maximum tenure offered for the purchase of used cars under Karnataka Bank Car Loan scheme?

   Borrowers can choose a maximum tenure of up to 34 months for the purchase of second-hand vehicles with Karnataka Bank Car Loan.

7. I am planning to purchase a new car with Karnataka Bank Car Loan. What is the maximum tenure option that I can choose?

   For the purchase of new cars, Karnataka Bank offers a maximum tenure option of up to 84 months.

8. Can NRIs apply for Karnataka Bank Car Loan?

   Yes, Karnataka Bank Car Loan is offered to Non Resident Indians also.

9. What is the security for Karnataka Bank Car Loan?

   The following is prescribed as security for Karnataka Bank Car Loan.

   • Hypothecation of the four wheeler to be purchased
   • Third party guarantee or co-obligation in case of an individual applicant
10. Where can I get an application form for Karnataka Bank Car Loan?

    Customers can download a copy of the application form for Karnataka Bank Car Loan from the bank’s web portal. Alternatively, customers can also collect the application form for car loan from the nearest bank branch.

11. What is the interest rates for KBL Car Loan?
    • New vehicle loan up to Rs.75 lakh - 9.10% p.a. (existing customers with a good track record can get 9% p.a.)
    • Old vehicle loan up to Rs.20 lakh - 13.50% p.a.
    • How do I calculate the EMI for Karnataka Bank Car Loan?

      To calculate the EMI amount for Karnataka Bank Car Loan, you can use the online car loan EMI calculator tool offered by BankBazaar. You will need to input details like principal amount, tenure and interest rates to find out the monthly instalment amount and amortization schedule.

    • What extra charges will I incur when applying for a Karnataka Bank Car Loan?

      Other charges that you will incur when applying for a Karnataka Bank Car Loan include processing fees, stamp duty, repossession charges and other incidental charges as applicable. Do enquire with Karnataka Bank about the current charges for car loans as rates and charges are subject to frequent change.

    • How long does Karnataka Bank take for processing car loan applications?

      Karnataka Bank Car Loan applications will be generally processed within 7 working days provided the customer has submitted all required documents and has completed all required formalities.

    • How is the loan quantum calculated for Karnataka Bank Car Loan?

      The loan quantum is calculated based on a variety of factors including the applicant’s class (if self employed or salaried), applicant’s age, repayment capacity and the guarantee offered by the borrower.

    • What documents related to an used car do I have to submit while applying for Karnataka Bank Car Loan?

      If an applicant is planning to purchase an used car with Karnataka Bank Car Loan, he has to submit the following documents.

      • Registration certificate of the vehicle. Original RC must be submitted at the time of disbursement.
      • Agreement of sale between buyer and seller
      • Prescribed transfer form, executed by the seller for onward submission to the RTO
      • Particulars of the vehicles to be purchased
      • Copy of receipts of up to date deposit of taxes including road tax
      • Recent quotation of the vehicle from an authorized dealer
    • Will Karnataka Bank Car Loan borrowers get customer support from the bank during the loan process?

      Yes, Karnataka Bank Car Loan borrowers can contact the customer service cell of the bank anytime by using the toll-free number 1800 425 1444, or the email id. Customers can also contact the nearest bank branch for assistance during the loan process.

    • Will my CIBIL scores be considered for Karnataka Bank Car Loan approval?

      Yes, though CIBIL scores are not generally insisted upon, having a good CIBIL score will increase the chances of car loan approval. Karnataka Bank considers the credit repayment history and CIBIL score of the customer before approving a car loan.

    • I am a salaried applicant. What documents do I have to submit when applying for a Karnataka Bank Car Loan?

      Salaried applicants should submit the following income documents when applying for a Karnataka Bank Car Loan.

      • Latest salary slips
      • Latest Form 16
      • IT Return statements
      • Bank account statements showing salary credit
    • What income documents should agriculturists submit when applying for a Karnataka Bank Car Loan?

      Agriculturists must submit documents related to cropping pattern and land holding. They must also submit other income documents like bank account statements, if applicable, when applying for a Karnataka Bank Car Loan.

    • What documents should a customer submit when applying for Karnataka Bank Car Loan?

      An applicant must submit the following documents while applying for a Karnataka Bank Car Loan.

      • Income Proof
      • Identity Proof
      • Address Proof
      • Duly-filled application form
      • Letter from a guarantor, if applicable
      • Quotation for the vehicle from a recognized seller
    • Do I have to present a guarantor for Karnataka Bank Car Loan?

      Yes, individual applicants must present security in form of third-party co-obligation or guarantee.

    • Can existing customers of Karnataka Bank apply for a Car Loan?

      Yes, existing customers of Karnataka Bank and borrowers of other credit products can apply for KBL car loan.

    • Does Karnataka Bank offer financing for two-wheelers under the same scheme as well?

      Karnataka Bank offers loan for two-wheelers under KBL Easy Ride scheme.

    • What income documents does a self-employed applicant have to submit when applying for a Karnataka Bank Car Loan?

      Self-employed applicants must submit income tax return statements, balance sheet, profit and loss statements, bank account statements and proof of business establishments.

    • How can I apply for a Karnataka Bank Car Loan?

      Customers can visit any of the nearest Karnataka Bank branch to apply for a Karnataka Bank Car Loan. Customers will be asked to fill out an application form and present all necessary documents to proceed with the car loan process.

    • Can a borrower make a joint application for Karnataka Bank Car Loan?

      Yes, customers can apply either singly or jointly for Karnataka Bank Car Loan. Any of the immediate family members (like spouse, children and parents) can be made as co-borrowers in case of joint application.

    • How can I make the EMI payments for Karnataka Bank Car Loan?

      Customers can choose from any of the following methods to make EMI payments for Karnataka Bank Car Loan.

      • Internet Banking
      • Post Dated Cheques (PDCs)
      • Electronic Clearing System (ECS) Debit facility
      • Standing instruction to Karnataka Bank account to remit the amount directly to loan account.
    • What are the various stages involved in a Karnataka Bank Car Loan?

      Karnataka Bank Car Loan process consists of the following stages.

      • Application - the customer makes an application and submits all required documents
      • Sanction - a loan quantum is approved by the bank based on applicant’s profile
      • Disbursement - the amount is disbursed to the borrower or the dealer