As India’s fastest expanding commercial banks, RBL Bank has established its presence across the country through its ever-growing network of ATMs and branches. With a clientele of more than 14, 00,000 and a total business of over Rs. 31,000 Crores, RBL Bank offers a wide variety of banking services inclusive of corporate banking, institutional banking, retail banking, commercial banking, agricultural and development banking. RBL Bank also provides state-of-the-art online banking services and mobile banking services to customers on secure platforms.
The retail arm of RBL Bank includes a variety of products ranging from fixed deposits, accounts, credit cards, loans, insurance, demat and investments. RBL Bank offer one of the best car loan products with flexible repayment tenures and multiple loan amount options at competitive interest rates. Owning a car, SUV or MUV is no longer a hassle as customers can easily procure a RBL Bank car loan with quick processing and approvals. RBL Bank also offers the fast track car loans to salaried customers, enabling them to make instant applications using the RBL web portal. Customers can get financing for up to 90% of their new car value, when they apply for a RBL Bank car loan.
Salaried customers and self-employed professionals can easily apply for a RBL Bank car loan at affordable interest rates. With good credit scores and higher down payment amounts, borrowers can get excellent deals on their car loans. The interest rate for a RBL Bank car loan is generally fixed depending on the base rate of the bank. Customers availing RBL Bank car loans can determine their monthly installments with fixed interest rates and need not worry about market fluctuations.
|Interest Rate||13% - 14%|
|Loan Processing Charges||1% of the loan amount|
|Issue of Duplicate Interest and Principal Certificate||Rs 250|
|Cheque Bounce Charges||Rs 250|
|Loan Foreclosure charges||If the car loan is closed before 12 months, then the charges would be 5% of the outstanding principal amount. After a 12-month period, a charge of 3% would be levied.|
|Late Payment Charges||2% additional interest on the overdue amount every month|
|Prepayment before 6 months||No charges levied.|
|NOC issuance charges||Rs 250|
|Cheque swapping charges||Rs 250|
|Charges for issuing CIBIL report||Rs 50|
|Loan Tenure||12 to 60 months|
|Quantum of Loan||Up to 90% of the car value|
Any customer availing a RBL Bank car loan can conveniently repay back the loan using equated monthly installments or EMIs. The amount that has to be paid by a customer on a monthly basis to RBL Bank after availing a car loan is called the EMI. The EMI amount is a total of the principal amount and the fixed interest rate charged by the bank. At the beginning of the loan term, borrowers have to pay huge portions of the monthly installment as interest charges, with only a small portion dedicated towards the principal amount. As the RBL Bank car loan tenure progresses, the principal amount increases and then there will be a reduction in the interest rate.
|RBL Bank Auto Loans||Interest Rates|
|Small/ Compact Vehicles priced Rs 1-3 lakhs||13.50%|
|Mid-Size / Large Vehicles||12.50%|
|Premium / Super Premium/ SUV||12.00%|
The EMI for a RBL Bank car loan can be calculated as follows -
EMI (E) = [P x r x (1+r) ^n]/ [(1+r) ^n-1]
P = The Principal Loan Amount
R = The Interest rate charged per month. RBL Bank charges a fixed interest rate ranging between 13% and 14%, depending on the type of vehicle financed.
N = The number of years opted for the repayment of loan.
For a principal amount of Rs. 1, 00,000 given at an interest rate of 13% and a loan tenure of 1 year, an estimate of the total sum of EMIs that has to be paid by the borrower is Rs. 1, 07,181 out of which the interest will be around Rs. 7181.
In the following example, for a car loan amount of Rs. 4,00,000 to be repaid in 36 months at an interest rate of 14% from RBL Bank (Calculations based on EMIs - paid in advance):
|Year||EMI Amount||Interest Amount||Principal Amount||Balance|
|2015||Rs. 41,013||Rs. 13,684||Rs. 27,330||Rs. 3,72,670|
|2016||Rs. 1,64,053||Rs. 44,708||Rs. 1,19,344||Rs. 2,53,326|
|2017||Rs. 1,64,053||Rs. 26,885||Rs. 1,37,167||Rs. 1,16,159|
|2018||Rs. 1,23,039||Rs. 6,881||Rs. 1,16,159||Rs. 0|
The total interest to be paid towards a RBL Bank Car Loan for an amount of Rs. 4, 00,000 would be Rs. 92,158.
There are multiple factors affecting the car loan interest rate given to customers by RBL Bank. Some of the popular factors playing an important role have been explained below -
Down Payment - Paying a huge down payment towards a new car loan, helps customers get lower interest rates from lenders. Though making a lump sum payment might be difficult task for customers, this will definitely benefit the borrower and help in reducing the total cost of the car loan. Banks tend to reduce the interest rates if customers make a huge down payment towards the car loan.
Loan Amount - The loan amount automatically reduces if the customers make a higher down payment. The borrower does not have to pay higher monthly installment amounts as the lending institution will lower the car loan interest rates, for a smaller quantum of loan. Higher loan amounts usually attract higher rates of interest.
Income - The income of the individual also helps determine the interest rate being offered by the bank for a car loan. The lender looks into the financial capacity of an applicant to ensure that he can comfortably repay back the car loan. If an applicant meets the required income eligibility criteria and also makes a high down payment amount, the bank will definitely offer an affordable, if not low interest rate.
Debts - Borrowers are always advised to clear off all their debts before they avail any type of new loan. Lenders will always look at the customer’s repayment patterns, debt management and general money management to sanction a car loan. The debt to income ratio is an important factor for banks to approve a car loan at affordable interest rates. The lower the number of debts, the possibility of getting a low interest rate is increased.
Credit card spending and repayment patterns, debt, liability and general financial management contribute towards creating a good credit score. It is important for customers to furnish a good CIBIL score to ensure that they get an attractive deal with regards to car loan interest rates. A low credit score translates into irregular repayments of pending dues and liabilities, which does not present a good picture in front of the loan approver. Since the credit score represents the applicant, it is compulsory to have a good score and a clean credit record to get lower interest rates, thereby reducing the total cost of the loan.