Lakshmi Vilas Bank Car Loan

Overview About Lakshmi Vilas Bank Personal Vehicle Loan

Lakshmi Vilas Bank was founded in 1926 to cater to trading businesses, industry and agriculture in Karur. It was incorporated under the Indian Companies Act. Eventually, it obtained its banking license from RBI in 1958. It turned into a scheduled commercial bank with permission to operate as a fully functional commercial bank. The bank operates through a network across India with 401 branches (plus 7 extension counters) supervised by 11 Regional Offices.

Lakshmi Vilas aims to develop financial services and products that are based on quality and value for their customers and society. The bank is driven to bring sound and dynamic banking services while striving for excellence as an organisation.

Why choose Lakshmi Vilas Bank Personal Vehicle Loans?

Lakshmi Vilas provides loan for the purchase of new cars, vans, jeeps and two-wheelers. They also give loans for used cars, vans and jeeps which are not over 4 years old from the date of the first registration. The loans are simplified to provide utmost convenience to their customers. They offer quick processing and hassle-free service along with attractive benefits on their vehicle loan.

Features of Car Loans from Lakshmi Vilas Bank

• Speedy processing and hassle-free service
• Simplified scheme norms
• Easy repayment tenures
• Get a loan for new vehicles with a margin of 15% of the invoice value.
• Get a loan for used cars in good working condition with a margin of 40% of the cost of the vehicle.

Lakshmi Vilas Bank Car Loan Interest Rates

Initially the interest rate was based on the Base Rate system introduced by the RBI in 2010. However, in order to make this lending rate system more effective, the Marginal Cost Based Lending Rate or MCLR has been introduced. This helps to standardize the interest rate on all loan products, including car loans. Existing Lakshmi Vilas 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.

Lakshmi Vilas Bank Marginal Cost Based Lending Rate (MCLR) for New Borrowers:

MCLR rates are subject to change from the next reset date, as per RBI regulations. Currently, Lakshmi Vilas Bank follows the following MCLR rates as per tenure of the loan:

Lakshmi Vilas Vehicle Loan Amount

• New four wheelers - You can avail a loan of up to 25 times your net monthly income or 85% of the cost of the four wheeler according to the invoice. The invoice will include road tax and insurance and accessories up to Rs. 25,000. The maximum loan amount is capped at Rs. 25 lakhs.
• Used four wheelers - You can get a loan of up to 60% of the cost of a used vehicle. The maximum loan amount you can avail of is Rs. 10 lakhs.
• Two wheelers - You can take a loan that covers 75% of the cost of the vehicle but not exceeding 6 times your net monthly income. The minimum amount is set at Rs. 10,000 and capped off at Rs. 1,50,000.

Lakshmi Vilas Bank Repayment tenure

The tenures available for loan repayment are set according to the type of vehicle you purchase.

Eligibility criteria for a Car Loan from Lakshmi Vilas Bank

If you fulfill the following criteria, you will be eligible to avail of a car loan from Lakshmi Vilas Bank.

• The maximum age on the date of maturity of the loan cannot exceed 65 years.
• Salaried people earning at least Rs. 1,20,000 per annum, who are either of the following:
  • Permanently employed in Central/State Government service
  • Public Sector Undertakings/Corporations
  • Private Sector companies or establishments that are reputed.
• Others earning at least Rs. 1,20,000 per annum, who are either of the following:
  • Professionals
  • Self-employed and businessmen
  • Agriculturists
• For four wheelers - salaried individuals net monthly income should be at least twice the EMI of the loan.
• For two wheelers - for all borrowers, the net monthly income should be Rs.5,000/- with necessary proof

How to calculate EMI on Lakshmi Vilas Bank Car Loans

Use the calculator available on BankBazaar.com to estimate your EMI amount so you can better plan to take a loan. You will also be presented with an amortization schedule which will give you a picture of your loan repayment schedule. You will be able to see a clear overall picture of your loan over the course of the tenure so that you can make a wise and affordable choice. At BankBazaar.com, we strive to make sure you don’t experience excessive financial strains unknowingly. To use the calculator is simple and self-explanatory.

• Access BankBazaar.com
• Select the tab “Finance Tools”
• Select the option of “Car Loan EMI Calculator” under that.
• Input your details
  • Loan amount you are seeking
  • Tenure
  • Interest rates offered by the bank you’ve chosen
  • Any processing fee amount
  • You also have the option of stating if you would like to make prepayments on your loan
• Hit calculate to see the details of your loan that include your EMI and amortization schedule.

Lakshmi Vilas Bank Car Loan FAQs

1. What type of vehicles does Lakshmi Vilas Bank finance?

   You can get a car loan from LVB to purchase a car, van or jeep.

2. Can I avail of a loan to finance a used vehicle?

   Yes, you can also buy used cars, vans and jeeps. The car should not be more than 4 years old from the first registration date. It should also be in good working condition.

3. Where can I get a Car Loan Application form?

   You can find the application form online when you opt to apply for the car loan on the Lakshmi Vilas Bank website. The forms are also available at any Lakshmi Vilas Bank branch.

4. How do I apply for an Lakshmi Vilas Bank Car Loan?

   To apply for a car loan from Lakshmi Vilas Bank, you can choose either of the two methods listed below.

   • Visit the nearest Lakshmi Vilas Bank branch.
   • Apply on the Lakshmi Vilas Bank Website.
5. How do I apply online for a LVB car loan?

   To apply for a car loan on the Lakshmi Vilas Bank website, locate Support Services on the right hand side menu. You can see an option to “Apply online”. You will be directed to a page that gives you information about applying online. You can click on “Apply online” to be directed to the application form. Fill out the form. You will have an option to choose your product type. Choose “advances” and then “personal vehicle loan”. Enter all your details and click on submit.

6. Can I check the status of my Lakshmi Vilas Bank loan application online?

   Yes, you can track your loan status online. Follow the same link “apply online” under Support services. Opt to “Track Status”. Fill in your application number and date of birth. Submit these details to see the status of your loan.

7. Who is eligible to apply for an LVB car loan?

   The eligibility requirements are given below.

   • Salaried individuals employed permanently in Private Sector Companies of repute, Reputed Establishments, State or Central Government, Public Sector Undertakings or Corporations.
   • Self-employed.
   • Businessmen.
   • Agriculturists.
8. What is the minimum income required to be eligible for this loan?
   • Salaried individuals should be earning Rs. 1.2 lakhs per annum through salary and other income. The loan EMI should not exceed half the net monthly income.
   • For others, the annual income should be at least Rs. 1.2 lakhs.
9. What are the age limits for the Lakshmi Vilas car loan?

   Lakshmi Vilas Bank sets the age limit as 65 years under all categories of borrowers. The borrower should not exceed 65 years by the date of loan maturity.

10. What are the Credit score requirements for the LVB four wheeler loan?

    Credit score requirements have not been mentioned by Lakshmi Vilas. However, the bank has the authority to enquire about your score. The usual limits are 750 and above. Banks may relax it to 550 under certain terms and conditions.

11. What is the maximum car loan quantum offered by Lakshmi Vilas Bank?

    The maximum loan amount for new vehicles is Rs. 25 lakhs. The maximum loan amount for used vehicles is Rs. 10 lakhs

12. How is the eligible car loan quantum calculated?

    The loan amount you are eligible to receive will depend on your income.

    • For new cars - LVB can sanction up to 25 times the net monthly income or 85% of the cost of the car. This cost will include road tax, insurance and up to Rs. 25,000 for accessories.
    • For used cars - LVB can sanction 60% of the cost of the vehicle.
13. What is the minimum car loan tenure a Lakshmi Vilas Bank four wheeler vehicle loan?

    Lakshmi Vilas Bank has not specified any minimum time period for repayment.

14. What is the maximum loan tenure for a Lakshmi Vilas Bank car loan?
    • For new cars the maximum tenure is 72 months.
    • For used cars, the maximum tenure is 36 months
15. What is the interest rate offered on Lakshmi Vilas Bank Car Loan?

    The current base rate of LV Bank is 10.55% per annum. The interest rates on car loans are given in the table below.

Type of vehicle	Breakdown	Effective Interest Rate
New Vehicle	BR+0.50%	9.85 % p.a.
Used Vehicle	BR+3.00%	13.55 % p.a.

16. Are there any processing fees on Lakshmi Vilas Bank Car Loans?

    The processing charges levied by Lakshmi Vilas Bank are as follows.

Loan Quantum	Processing fee
Up to Rs. 2 lakhs	0.50% of the loan amount
Above Rs. 2 lakhs - Rs. 1 crore	1.10% of the loan amount
Above Rs. 1 crore	1.20% of the loan amount

17. What are the document charges on car loans?

    The document charges levied by Lakshmi Vilas Bank are as follows.

Loan Quantum	Processing fee
Up to Rs. 25 lakhs	Nil
Above Rs. 25 lakhs - Rs. 1 crore	Rs. 1.000
Above Rs. 1 crore	Rs. 2,000

18. What security or collateral is required by Lakshmi Vilas Bank?

    Hypothecation of the vehicle is required.

19. What are the margin requirements for new vehicles?

    The margin required by Lakshmi Vilas Bank is 15% for new cars.

20. What is the margin limit for used vehicles?

    40% is set aside as the margin requirements on pre-owned cars.

21. What are the penalties for late payments?

    Charges for late payment could include a fee and an increase in the rate of interest.

22. Can I make payments on my car loan online?

    You can pay you online through net banking.

23. How do I make the payments through net banking?

    Follow these simple steps to make payments on your car loan from the comfort of your own home or office.

    • Login to your online bank account.
    • Click on the Loan re-payment option
    • From the list of outstanding loan accounts, select the car loan account.
    • You can view the loan details here.
    • Select the account from which you would like the amount to be deducted.
    • Enter the amount to be credited to the selected loan account and
    • Click on ‘Make Payment’
    • You will need to confirm the transaction using your Transaction Password.
24. Will the Lakshmi Vilas Loan cover accessories bought for the car?

    Lakshmi Vilas allows up to Rs. 25,000 only for accessories. The maximum loan amount inclusive of accessories cannot exceed 25 lakhs.

25. Can I calculate my loan EMI amount before applying for a car loan?

    Yes, LVB and BankBazaar provide EMI calculators online that allows you to input your loan details to find out your monthly instalment amount.

26. How do I use the EMI car loan calculator?

    Locate the Calculator under “Support Services” on the LVB website. Input the following details:

    • Loan Amount
    • Interest Rate
    • Loan term
    • When you click on ‘Search”, you can see the EMI amount and the number of instalments you will have to pay.
27. Does Lakshmi Vilas Bank provide commercial vehicle loans?

    Yes, LVB provides loans to buy vehicles for commercial purposes that includes buses, multi-axle vehicles, paid passenger vehicles, oil tankers, LPG bullet tankers, JCB, Rig Units, Road Rollers, Bulldozers, Harvesters, Poclain Unit, and other earth movers. This loan is separate from the personal vehicle loans.

28. What is the processing time for car loans?

    Lakshmi Vilas Bank ensures quick processing of car loan applications along with it being hassle-free.

29. How do I contact the Lakshmi Vilas Bank Customer Care for car loan queries?

    The Lakshmi Vilas Bank customer care helpline can be reached on their toll free number: 1800-425-2233.