Karur Vysya Bank is a leading private sector bank which was incorporated in India in 1916. It is headquartered in Karur, India. The bank offers a wide range of banking and financial services and products to its large customer-base. Karur Vysya Bank has a distinct presence across India through its network of approximately 629 branches and 1645 ATMs.
Karur Vysya Bank offers the car loan scheme called “Flexi Mobile Loan” through which all eligible borrowers can purchase the car of their choice at affordable repayment options. This product is popular among car loan borrowers since it offers attractive features such as lower fees and charges, insurance coverage, etc. This auto loan is provided to all resident individuals, for the purpose of purchase of a new or used car which is not more 5 years old, for business or personal use, except for car hiring.
Karur Vysya Bank’s Flexi Mobile Loan scheme provides eligible customers the opportunity to avail a higher loan quantum to own the car of their choice. The loan tenure, EMI and related repayment options are very customer-friendly and flexible, and has various other additional benefits.
|Interest Rate||11.40% (BR + 1.00%, i.e. 10.40% + 1%)|
|Maximum Loan Amount||Rs.75.00 Lakhs|
|Minimum & Maximum Car Loan Tenure||Minimum Tenure - 12 months Maximum Tenure - 60 Months (5 years)|
|Processing Fees/Charge||0.40%- 1.00% of the sanctioned loan amount; Or For Loans up to Rs.10.00 Lakhs - Rs.4000.00+ Service Tax For loans above Rs.10.00 Lakhs - Rs.8000.00 + Service Tax|
|Amendment Charges||0.25% on loan amount|
|EMI per Lakh (for 5 year loan tenure)||Rs. 2337*|
*Estimated value of EMI, when paid in advance.
Karur Vysya bank offers highly flexible repayment options, especially in the form of Equated Monthly Installments (EMIs), through which customers can pay back the loan amount in easy monthly installments. By paying the comparatively low interest rate levied on the auto loan by the bank for a loan term chosen by the borrower, he/she can own his/her dream car. If you opt for a longer loan tenure, then there could be a reduction in the interest rate that has to be paid out to the Bank.
If you wish to know how EMI on your car loan is calculated, here is the basic formula that is applicable:
EMI (E) = [P x r x (1+r) ^n]/ [(1+r) ^n-1]
P stands for the principal or the loan quantum,
R is the rate of interest applicable per month [Therefore, for an annual interest rate of 11.40%, the rate of interest will be 11.40/ (12 x 100)],
N is the number of monthly installments made/ no. of months taken for car loan repayment.
For example: If you take a car loan for Rs. 13,00,000 at an interest rate of 11.40% with a loan tenure of 5 years, an estimate of the total interest payable would be Rs. 4,11,510. Therefore the total payment due by the end of the loan tenure will be Rs. 17, 11,510.
In the following illustration, for a car loan amount of Rs. 12,00,000 to be repaid in 3 years at an interest rate of 11.40% from Karur Vysya Bank (Calculations based on EMIs paid in arrears), the EMI per month from Oct 2016:
|EMI||Principal||Interest Amount||Total Payment||Balance Due|
|Oct 2016||Rs. 28,114||Rs. 11,400||Rs. 39,514||Rs. 11,71,886|
|Nov 2016||Rs. 28,381||Rs. 11,133||Rs. 39,514||Rs. 11,43,505|
|Dec 2016||Rs. 28,651||Rs. 10,863||Rs. 39,514||Rs. 11,14,854|
|Year||Principal||Interest Amount||Total Payment||Balance Due|
|2015||Rs. 85,146||Rs. 33,396||Rs. 1,18,542||Rs. 11,14,854|
|2016||Rs. 3,65,798||Rs. 1,08,372||Rs. 4,74,170||Rs. 7,49,056|
|2017||Rs. 4,09,748||Rs. 64,421||Rs. 4,74,170||3,39,307|
|2018||Rs. 3,39,307||Rs. 16,320||Rs. 3,55,627||Rs. 0|
Total interest amount to be paid for a Karur Vysya Bank Car Loan amount of Rs. 12, 00,000 for 3 years would be Rs. 2, 22,510. Therefore, the total payment made by the end of the tenure is Rs. 14, 22,510. The interest rate decreases until the loan is repaid and the principal loan amount repayment increases with the tenure.
In most cases, the interest rate stipulated by the bank remains the same. However, there are certain factors that can affect your Karur Vysya Bank car loan interest rate. These can also impact the loan amount sanctioned to the prospective borrower, along with the EMI to be paid-out. Few of these factors are given below.
An initial check made by the bank on the creditworthiness of an applicant, is the individual's credit score. The credit history reflects the borrower’s repayment capacity, debt-to-income ratio, etc. Therefore, the CIBIL Score is a detrimental factor affecting the interest rate levied on a car loan. In order to be able to negotiate with the bank for a lower rate of interest, the borrower should have a high CIBIL Score. The CIBIL TransUnion Score generated by the Credit Information Bureau of India, is a 3 digit number ranging from 300 - 900. Most lenders check the CIBIL score of its loan applicants while processing their loan applications and consider this against other important factors before deciding to offer a car loan or not. Higher scores ensure that you can get an auto loan at a lower rate of interest.