Syndicate Bank Car Loan Interest Rates 27 May 2019

Syndicate Bank offers car loans at an attractively low interest rate of 10.35% and it is calculated based on monthly reducing balance. The interest rate is linked to the base rate which fluctuates periodically. Hence, the total interest payable is Base Rate plus 0.65%. Repayment tenure is very flexible as the borrower can choose to repay the car loan amount in up to 84 EMIs. For new cars, a customer can repay up to 7 years and for used cars the repayment tenure is 5 years.

* Estimated Value

Syndicate Bank was initially known as “Canara Industrial and Banking Syndicate Limited” and was established in 1925 in Udupi, Karnataka. It was renamed as Syndicate Bank in 1964. The car loan scheme offered by Syndicate Bank is called “SyndVahan” which is available to borrowers for the purchase of used as well as new vehicles. Borrowers can avail up to 95% of the ex-showroom value of the car. Some highlights of this auto loan scheme are: high loan quantum, low income eligibility constraints, flexible repayment tenure, etc.

How to Calculate my Syndicate Bank Car Loan Interest Rate

Calculating Syndicate Bank Car Loan Interest is based on a simple formula which is:

EMI (E) = [P x r x (1+r)^n]/[(1+r)^n-1]

Here, the values connoted “E”, “P”, “R” and “n” stands for is EMI, the principal amount of the loan, the applicable rate of interest and the loan tenure, respectively. “R” is the interest rate that is applicable on the loan amount, per month. Therefore, in order to get the monthly rate of interest, the formula used on the annual interest rate is 10.35/(12 x 100).

For example: If you take a car loan for Rs. 4,00,000 at an interest rate of 10.35% with a loan tenure of 7 years, the projection of EMI and interest payable would be as follows - EMI payable per month would be Rs. 6,713, total interest payable would be Rs.1,63,895/-, and the total payment made by you at the end of the loan term will be Rs. 5,63,895.

In the following example, you will get a clear idea of break-up of EMI on a loan amount of Rs. 5 lakhs for a loan term of 3 years at an interest rate of 10.35%. EMI per month is calculated from Oct 2016 to Sept 2018.

The first three months the projection will be as follows:

EMI	Principal	Interest Amount	Total EMI Payment (Principal + Interest)	Balance Due
Oct 2016	Rs. 11,903	Rs. 4,312	Rs. 16,216	Rs. 4,88,097
Nov 2016	Rs. 12,006	Rs. 4,210	Rs. 16,216	Rs. 4,76,091
Dec 2016	Rs. 12,110	Rs. 4,106	Rs. 16,216	Rs. 4,63,981

The following projection shows the total yearly EMI and repayment schedule for the loan term of 3 years, beginning from October 2015:

Year	Principal	Interest Amount	Total EMI Payment	Balance Due
2015	Rs. 36,019	Rs. 12,629	Rs. 48,648	Rs. 4,63,981
2016	Rs. 1,53,725	Rs. 40,865	Rs. 1,94,591	Rs. 3,10,256
2017	Rs. 1,70,413	Rs. 24,178	Rs. 1,94,591	Rs. 1,39,843
2018	Rs. 1,39,843	Rs. 6,100	Rs. 1,45,943	Rs. 0

In this scenario, loan EMI per month would be around Rs. 16,216 and the Total Interest Payable would be Rs. 83,772. Therefore, the total payment that you will have to make by the end of the loan tenure is Rs. 5,83,772.

Factors Affecting Syndicate Bank Car Loan Interest Rates

• Co-Applicant - If you have a co-applicant for the car loan, your chances of getting the car loan approved at lower interest rate is really high. This is because of the fact that the co-applicant’s income will also be added to calculate the overall income eligibility and repayment capacity. Having a co-applicant who has good income as well as a strong credit history can help you to avail a car loan at an attractive rate of interest from Syndicate Bank. A co-applicant can be your spouse, children, siblings, or parents. This enhances your opportunity of negotiating a lower rate of interest on the loan since the risk involved in lending the money is minimized.
• Debt-to-Income Ratio - Syndicate Bank scrutinizes an applicant’s income earned and relative debt outflow in order to evaluate their repayment capacity and creditworthiness. If you have a healthy income outflow compared to your net annual earnings, you can get a quick car loan approval. In such a situation, you can negotiate with the bank for a lower rate of interest.
• Loan margin- The loan margin or down payment made by you on the overall price of the car of your choice also influences the interest rate applicable on the car loan offered by Syndicate Bank. This is because down payment on the car and interest rate are inversely proportional, i.e., the bigger the down payment the lower is the interest rate applicable on the car 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.
• Existing Customers - Existing customers of Syndicate Bank have better chances of getting a lower rate of interest on their car loan. Since you already have a record of repayment and documents related to income, etc. the chances for getting your car loan application approved at a lower interest rate is high.
• CIBIL Score - CIBIL score of an applicant greatly influences the Bank’s decision regarding car loan approval and assignment of interest rate on the loan. A good credit rating helps a borrower to get a lower rate of interest on the car loan sanctioned by the Bank since the risk related to defaulting on the loan will be lower.

How CIBIL Score Affects my Syndicate Bank Car Loan Interest Rates

Syndicate bank and other banking and non-banking institutions have access to the CIBIL score of an applicant. The CIBIL TransUnion Score is a 3 digit number which ranges from 300 up to 900. This is scrutinized in-depth so that the Bank can evaluate an individual’s eligibility for a loan as well as the risk involved in lending out credit to an applicant. The credit history of an individual clearly portrays all his outstanding dues, income earned, repayment history, defaults on credit payments, etc. An individual who has a good credit history will have a high CIBIL score and are considered creditworthy by the concerned bank. A person having a CIBIL Score of 700-750 and above is considered an ideal CIBIL score by most banks, to approve a loan to. Higher scores ensure greater probability of procuring car loans at an attractive rate of interest since it reflects a lower risk on loan defaults. Hence, borrowers with a high CIBIL score can easily avail loans compared to those with low CIBIL scores.

Key Points to Note About Syndicate Bank Car Loan Interest Rates

• Syndicate Bank’s SyndVahan Car loan scheme is offered only to individuals who earn a net annual income of at least Rs. 2 Lakhs or more.
• Repayment can be made in up to 84 EMIs.
• Interest rate is linked to Base Rate and overall interest rate is equal to prevailing base rate plus 0.65%.
• Those who are eligible to avail a SyndVahan scheme are: Proprietors, Individuals, Partnership firms, Trusts, Agriculturists, Societies and any other legal entity. This does not include Hindu Undivided Families, Directors/Employees of Corporates, etc.
• Borrowers who are employed under PSUs/Govt/BlueChip Companies can get a concession of 1% on the prevailing interest rate in the SyndVahan scheme.