• Karnataka Bank Car Loan

    Karnataka Bank Car Loan

    Published On : 2021-06-18

    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.

    Documentation needed to apply for an Karnataka Bank Car Loan

    • 1. Residence proof
    • 2. Signed application form with photograph
    • 3. Photo ID and age proof
    • 4. Last 6 months bank statement
    • 5. Documentation for salaried applicants:
      • Last 3 months salary – slips
      • Form 16 or Income Tax Returns
    • 6. Documentation for self-employed applicants:
      • Last 3 years Income Tax Returns with computation of Income
      • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

    Karnataka Bank Car Loan Interest RatesUpdated on 29 Nov 2021

    Karnataka Bank Car Loan Details
    Interest Rate (Monthly reducing balance) 9.90%
    Loan Tenure 7 Years
    Processing Fees 0.25% with a minimum of Rs 250.00
    Guarantor Requirement Guarantor required

    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.

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    Karnataka Bank Car Loan Reviews

    • Karnataka Bank
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with karnataka bank recently, they have given me sufficient loan amount and there rate of interest they have charged was nominal for me and there processing fee they have charged me nominal only.As i am privilege customer they have not charged me processing fee.
      Was this review helpful? 6
      , bangalore
      Reviewed on Apr 21, 2019
    • Karnataka Bank
      Karnataka Bank
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      Got my car loan with KARNATAKA bank recently,They have given me loan amount on based on vehicle price,and the rate of interest they have charged me was nominal,till now i have not faced any issue,their service is very prompt,i got impressed with their service and the loan is still ongoing.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 26, 2019
    • Karnataka Bank
      "Best Banking sevice"
      0.5 5.0/5 "Blown Away!"
      Got my car loan from Karnataka bank , where the rate of interest is promising one They took few days for approval and documentation. Where i use to pay monthly through ecs . And there is no processing fees.Overall am satisfied with Car loan from Karnataka bank
      Was this review helpful? 2
      , new delhi
      Reviewed on Sep 04, 2018
    • Karnataka Bank
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Got the car loan from the Karnataka bank and they have disbursed the loan amount within a day time and they have approved Rs,7,50,000 within a day time. The customer support service and the response part is good with the Karnataka bank. The rate of interest and the charges are average with the Karnataka bank.
      Was this review helpful? 2
      , bangalore
      Reviewed on Mar 28, 2018
    • Karnataka Bank
      "Very Good bank"
      0.5 5.0/5 "Blown Away!"
      I have closed the car loan with the Karnataka bank limited and the customer service is very good one. I would like to say that the online banking services are really an excellent one with the Karnataka bank limited.
      Was this review helpful? 1
      , bangalore
      Reviewed on Nov 23, 2017
    • Karnataka Bank
      "Good"
      0.5 5.0/5 "Blown Away!"
      I had closed my car loan with Karnataka Bank before 2 to 3 years. It was a good experience. The interest rate was normal and the processing charges is nominal. Documentation process is easy. I have a purchased a new vehicle. I have taken 80% of loan.
      Was this review helpful? 3
      , bangalore
      Reviewed on Nov 16, 2017
    • Karnataka Bank
      "Smooth process"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with Karnataka bank and has been a good experience till ate and will be closed by the year 2018. It has been a smooth process with them during the loan term. I have an interest rate of 11% on my loan which is nominal. Its a best bank to bank with.
      Was this review helpful? 1
      , bangalore
      Reviewed on Nov 11, 2017
    • Karnataka Bank
      "Postivness overloaded"
      0.5 5.0/5 "Blown Away!"
      I have been having a long standing relationship with this bank, owing which I asked them for a Rs.6 Lakh worth a car loan. To my surprise the loan got approved immediately and the cash reached the account by next day. Which is something extraordinary. I have been given interest rate of 9% which is pretty decent too.
      Was this review helpful? 1
      , coimbatore
      Reviewed on Oct 13, 2017
    • Karnataka Bank
      "Very good service"
      0.5 5.0/5 "Blown Away!"
      I directly met the Karnataka bank branch manager and spoke about the car loan. They have disbursed my car loan within 8 days of time. The required loan amount has been approved by Karnataka bank. The rate of interest of interest is nominal with Karnataka.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jul 06, 2017
    • Karnataka Bank
      "Excellent services"
      0.5 4.5/5 "Excellent!"
      Karnataka bank is very much beneficial also they have offered me a car loan with a good deal. The interest rate and charges was nominal and they were quick in the process also. The after loan features are also good and I had no hassles with the bank in this process.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jun 17, 2017
    • Karnataka Bank
      "Fantastic"
      0.5 5.0/5 "Blown Away!"
      I have an OD account with Karnataka bank through which I had recently taken a car loan. The documentation process very fast and my loan was disbursed within 3 days of time. They offered me an interest rate of 10.25% and they didn't charge me any processing at all. It was overall a fantastic experience.
      Was this review helpful? 4
      , chennai
      Reviewed on Oct 21, 2014
    • Karnataka Bank
      "Normal banking service"
      0.5 5.0/5 "Blown Away!"
      My friend was working with KARNATAKA BANK that is the only reason I have took this CAR LOAN with them. He is working as the branch maanger . Interest rates also floating same as other bank. I could not feel any particular feature with this bank. What other bank providing the same service provided by them also . No suggestions
      Was this review helpful? 3
      , bellary
      Reviewed on Aug 21, 2014
    • Karnataka Bank
      "Good service!"
      0.5 5.0/5 "Blown Away!"
      I have recently availed a car loan from Karnataka Bank. I personally approached the bank for applying the loan. I am very much satisfied with their services and the rate of interest was very good comparatively to other private banks in the market.
      Was this review helpful? 4
      , belgaum
      Reviewed on May 27, 2014
    • Karnataka Bank
      "Satisfied with Service"
      0.5 5.0/5 "Blown Away!"
      Karnataka bank CL overall satisfied with service approval process took in just 2 days interest rate was also good customer service and response from them was perfect no suggestion and disadvantages overall it was perfect I am satisfied with services.
      Was this review helpful? 13
      , bangalore
      Reviewed on May 17, 2014
    • Karnataka Bank
      "fantastic job"
      0.5 4.0/5 "Great!"
      Karnataka bank gives a very ggod customer service swith regards to Car Loan.There is no processing charges. No hidden charges.The bank will not charge if we pre-close the loan. They are very transparent in what ever they say. However if there were more branches of Karnataka Bank then it would had been much better.
      Was this review helpful? 9
      , chandigarh
      Reviewed on May 02, 2014
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