Lakshmi Vilas Bank Car Loan Interest Rates

1. Credit Score - Your credit history is recorded by the banks and maintained by credit bureaus. A good credit score translates to you being a good customer. Banks will be relaxed in lending you money as you have proved to be a good customer in the past. A good score puts you in a position to bargain for better interest rates. A low score leads to you being rejected for a loan. In case you secure a car loan with a low credit score, the banks may levy higher interest rates, and stricter terms and conditions on your loan.
2. Income - Income is a major criterion when getting a loan sanction. Lakshmi Vilas Bank requires you to be earning at least Rs. 12 lakh annually to avail of a car loan. You can also add your spouse's income to make up the eligibility criteria. More income means that you will be able to repay the loan. Banks can be assured that you have enough money to repay the loan. This is a favorable situation for your loan and your interest rates. Banks may also lend at lower rates to lower income brackets as the burden of the loan is more.
3. Down Payment - A smaller down payment means you have a larger loan amount to clear during the tenure of your loan. This is a riskier situation for the banks as they have a bigger sum to recover in case you default completely on the loan. Therefore, with a larger down payment, banks will have to bear less risk. This could work in your favor for better loan rates.
4. Loan Tenure - A short loan tenure will result in your EMI being higher but you will be paying lesser EMIs and will clear your loan faster. The total interest you pay in 2 years is significantly lesser than if you took a loan for 4 years. Furthermore, a shorter tenure is less risky for the bank. There's lesser time for a number of misfortunate events and market fluctuations to take place. The terms and conditions on your loan, including your interest rate could be negotiated when you take a loan for a short tenure. On the other hand, a longer tenure results in you paying more interest.
5. Car model and age - In case you default on your loan, banks will have no other choice but to seize the vehicle and resell it to recover the loan money. Car models depreciate differently. Some cars may retain value even after a long time, but others can see a drop in value almost immediately after purchase and use. Choosing a car model which retains its value will be favorable. While buying second-hand cars, the age and condition of the car play a pivotal role in getting a car loan. If a used car is in mint condition and is below 4 years old, the bank will be able to recover a good amount in case of defaulting on the loan. When you make your loan more favorable to the bank, you can bargain to make the loan more favorable to yourself as well. In case the car's value depreciates fast or the used car isn't in a very good condition, the banks may impose a higher interest rate.

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Lakshmi Vilas Bank Frequently Asked Questions (FAQs)

• Who can apply for an LVB Car Loan?

  Salaried individuals working for a state or central government body, public sector, private companies, self-employed individuals, businessmen, farmers and agriculturists can apply for an LVB car loan.

• What are the other eligibility criteria I will have to fulfil while applying for an LVB car loan?

  The eligibility criteria you will have to fulfil while applying for an LVB car loan:

  1. The minimum annual salary of the applicant should be Rs.1.2 lakh p.a., and the minimum net monthly income being Rs.5,000.
  2. The maximum age of the applicant should not be more than 65 years as on the date of the maturity of loan.
• What type of vehicles can I purchase if I avail a car loan from LVB?

  You can purchase not only a new car, but also pre-owned vehicles, jeep, and van for yourself by applying for a car loan from LVB. However, it is important to understand that you can avail a car loan from LVB if you wish to use the vehicle for private use only.

• How can I apply for a car loan from LVB online?

  You will have to visit the official website of LVB to apply for a car loan.

  1. Under the "Retail" drop-down menu, find "Retail Assets" and then click on "Retail Loans".
  2. Under "Personal Vehicle Loan", you will be able to see "Know More" and "Apply Online". Click on "Apply Online".
  3. You will then have to fill in a few personal details and click on "Submit".
  4. The bank officials will get back to you and discuss your eligibility and application process.
• Can I apply for a car loan from LVB offline?

  Yes, you can visit the nearest branch of LVB along with the relevant documents and approach a bank official to assist you with the process of applying for a car loan. Provide relevant details and submit your documents. The bank will verify the documents provided by you and if they are valid, the loan amount will be disbursed to your bank account within few days.

• Is there any toll-free number provided by LVB which I can use to contact customer care service?

  Yes, you can contact the customer care on the toll-free number 1800 - 425 - 2233 provided by the bank in case of any query. You can contact this number which is available 24x7 in case of any car loan query. A customer care executive will get in touch with you and ensure your query is resolved at the earliest.

• I want to purchase a pre-owned car. How old should the car/van/jeep should be so that I can avail a car loan from the bank?

  The pre-owned car, jeep, or van should not be more than 4 years old from the date of registration and should be in a perfect working condition. You can avail up to 40% of the cost of the vehicle as loan amount under the car loan provided by LVB.