If you really think about it, it's easier getting a loan for a car than a loan for bus fare!

    Karur Vysya (KVB) Car Loan Interest Rates

    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.

    Particular Charges
    Interest Rate 9.90% to 13.50%
    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+ GST For loans above Rs.10.00 Lakhs - Rs.8000.00 + GST
    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 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.

    How to calculate interest rate on my Karur Vysya Bank Car Loan

    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 9.90%/ (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

    EMI per year for 3 years (starting from October 2015 - September 2018):

    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.

    Factors Affecting Karur Vysya Bank Car Loan Interest Rates

    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.

    • Collateral Security - Pledging a collateral security with Karur Vysya Bank is an optional condition laid down by the bank. However, if you opt to pledge a valuable collateral such as Bank Deposits, KVP/NSC/LIC Policies, Land & Building etc., then the chances for a car loan approval at the lowest prevailing rate of interest is a high probability, provided that the other key factors are also favorable.
    • Guarantee - A reliable guarantor for your car loan can spike your chances of getting a favorable car loan approval and may also assist you in negotiating a lower rate of interest. The spouse or any other individual who meets the eligibility criteria can stand as the Co-obligor to your loan.
    • Loan Tenure - If the tenure you have chosen for your car loan is longer, it indicates higher risk of default payments to the bank. To negate this risk the bank might increase the interest rate applicable on the loan. By going for a lower loan tenure, the bank will be assured of quicker repayment so you can expect a lower interest rate.
    • Income- High-income earning applicants are more creditworthy since they have a higher repayment capacity, provided their debt to income ratio is well-balanced. In this scenario, it is easier for the borrower to negotiate with the Bank for a lower rate of interest.
    • Loan Margin - The extent of down payment made initially on the car by the borrower also affects the borrower's car loan interest rate. Higher the loan margin or down payment made by the borrower, greater are his chances of a favorable car loan package.
    • CIBIL Scores - An individual’s credit history is reflected in his/her CIBIL score. The credit score of an individual is one of the initial credit evaluation measures undertaken by banks. The Credit Information Report helps to generate this rating. Having a high CIBIL Score will influence the bank to lower the rate of interest that is applicable on the loan quantum of your choice. It is advisable to always check your CIBIL Score and pay off all dues before applying for a car loan.
    • Existing Customers - Those who are existing customers of Karur Vysya Bank have a higher probability of getting a car loan quickly, at lower rates of interest. Karur Vysya Bank offers various car loan benefits for established customers of the Bank and especially for those who have any deposits in Karur Vysya Bank.

    How CIBIL scores affect Karur Vysya Bank Car Loan Interest Rates

    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.

    Key Pointers on Karur Vysya Bank Car Loan Interest Rates

    • Borrowers can pledge a collateral security such as Bank Deposits, KVP/NSC/LIC Policies, Land & Building etc. This is an optional.
    • Third Party Guarantee can be given by a guarantor with good net worth, who is acceptable to the Bank, The spouse of the applicant or his/her friends or family members are preferred as co-obligors to the loan. This is also an optional condition for availing the car loan.
    • The loan margin applicable for purchase of new cars is 15%.
    • The maximum number of monthly EMIs that can be chosen by the borrower to repay the loan is 84 EMIs (applicable for purchase of new cars).
    • The Bank’s floating rate of interest is linked to the prevailing Base Rate.
    • In case of salaried employee, the employer must sanction the deduction of loan installments and interest from the salary. This is mandatory.

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