South Indian Bank Car Loan Interest Rates

South Indian Bank offers a car loan scheme that is available at an interest rate 8.75% p.a. for new cars and 12.7% p.a. to 16.7% p.a. for used cars.

Updated On - 09 Sep 2025
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South Indian Loan Interest Rate

Individuals can avail this product to buy new vehicles or second-hand vehicles, to take over existing vehicles, or to get a reimbursement of newly bought cars.

Loan applicants are required to have a minimum credit score of 700. The processing fee for the loan scheme is 1% of the loan amount, subject to a maximum of Rs.10,000.

Features

SIB Car Loan for new cars

SIB Car Loan for used cars

Interest rate

8.75 % p.a. onwards

12.7% p.a. to 16.7% p.a.

Loan tenure

From 1 year to 7 years

Loan amount

From Rs.1 lakh to Rs.1 crore

Processing fee

1% of the loan amount

Prepayment charges

Nil - 2% of prepaid amount

Foreclosure charges

1%

Lowest EMI per lakh

Rs.817 (at 9.5% p.a. for a 7-year tenure)

Rs.901 (at 12.7% p.a. interest for a 7-year tenure)

Other charges

Type of charge

Fees

Penal charges for late payment of EMI

Additional interest at 2%

Charges for furnishing copy of credit score report

Rs.50

No due certificate

Nil

Solvency certificate

  1. Up to Rs.10 lakh: Rs.100 - Rs.1,000
  2. Above Rs.10 lakh: Rs.1,000 per lakh and part thereof

Factors affecting South Indian Bank Car Loan Interest Rates 

The interest rate charged depends on several factors as those explained below:

  1. Profession: The bank enquires if you are a salaried individual, pensioner, self-employed professional, self-employed non-professional, or an agriculturist. The bank will look at the source of income and decide the rate of interest and maximum loan amount that can be offered to the individual.
  2. Tenure: Borrowers usually opt for a longer loan tenure as the amount of EMI that is to be paid each month is less. However, with a longer tenure, the interest amount that is paid is also higher.
  3. Credit score: Usually a credit score above 700 is considered to be good as the loan applicant is considered to be less risky financially. The higher the credit score, higher the chance of procuring a loan at a reasonable interest rate.
  4. Loan amount: The car loan amount, which depends on the on-road price of your car and other charges, will also determine the interest rate charged for your loan. The higher the loan amount, the lower the interest rate.

FAQs about South Indian Bank Car Loan Interest Rates

  • How do I apply for a South Indian Bank Car loan?

    You can apply for a South Indian Bank car loan by visiting the bank's website, filling in the form available on the website, and submitting it. Alternatively, you can visit the nearest branch of the bank and apply for a car loan of your choice directly.

  • What kind of vehicles does South Indian Bank provide loans for?

    South Indian Bank provides loans for most types of vehicles either for personal use or for official purposes and also for vehicles that are used for agrarian purposes.

  • Who can avail this car loan scheme?

    Resident and non-resident Indians, agriculturists as well as proprietors of partnership firms, societies, private companies, public companies, etc. can apply for this loan scheme.

  • Is there an age limit to avail this scheme?

    Individuals between ages 18 years and 65 years can apply for the South Indian Bank car loan.

  • Is there a margin for the SIB car loan?

    The margin mentioned for new vehicles, by the bank, is 10% to 20% and for used vehicles is 25%.

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