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  • Indian Bank Used Car Loan

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  • Indian Bank Used Car Loans

    Established in 1907, Indian Bank is a premier financial institution providing diversified banking solutions across India. Indian Bank also has a strong international presence with branches in Singapore and Sri Lanka and correspondent branches in over 70 countries. The specialized banking arm of Indian Bank comprises of branches exclusively for handling forex transactions, import, NRI businesses and remittance services along with a few branches to focus on MSME banking. Indian Bank has won awards and accolades for its participation in the development of rural areas by coming up with innovative schemes and also tailor made banking solutions catering to the rural populace. Keeping in tune with the latest technological developments, Indian Bank has turned into an e-banking institution implementing core banking services, computerized businesses, internet banking and tele-banking facilities. Indian Bank offers a wide spectrum of products like loans, deposits, insurance, foreign exchange and wealth management services to retail customers, corporates, SMEs, agriculturists and NRIs. As a very popular loan product, Indian Bank used car loans are available to customers at very affordable costs and flexible repayments.

    Features of a Indian Bank Used Car Loan

    Indian Bank used car loans can be taken for cars aged not more than 3 years and the car loan will be sanctioned only if the application is accompanied by an evaluation certificate from a reputed automobile engineer.

    Quantum of Loan

    Indian Bank sanctions up to 20 times the gross monthly income for salaried professionals. The take home pay should be more than 40% of the gross income after the deduction of EMI amount for the proposed loan, along with the inclusion of other deductions. The spouse’s income can also be clubbed along with the primary applicant’s income to calculate the eligibility criteria for an Indian Bank used car loan.

    Businessmen and entrepreneurs are sanctioned used car loans based on their average annual income for the last three years and also depending on their repayment capacity. The maximum loan amount than Indian Bank will approve for a used car loan is Rs 2 Crores.

    Loan Margin

    Borrowers are expected to cover a loan margin of 40% of the total cost of the used car financed by Indian Bank.

    Loan Repayment

    Salaried individuals can repay their used car loans with a maximum loan tenure of 84 months and all other type of borrowers can select their loan tenures up to a period of 60 months.

    Processing Charges

    Indian Bank charges a processing fees of 0.225% of the loan amount with a maximum being Rs 10,000/-.

    Security for the loan

    Indian Bank requires borrowers to provide security for their used car loans as hypothecation of the vehicle financed. If the loan amount is above Rs 10 lakhs, then customers are required to provide an additional security equivalent to the exceeding amount in the form of fixed deposit receipts, LIC policies, NSCs or mortgages of immovable properties.

    Eligibility criteria for an Indian Bank Used Car Loan

    Salaried employees can apply for an Indian Bank used car loan provided they have a minimum work experience of three years.

    Businessmen and other self-employed professionals who have been in business for atleast three years are also eligible to apply for a used car loan.

    Individuals getting a pension and having the capacity to repay the used car loan also qualify for an Indian Bank used car loan.

    Applicants are required to show a minimum gross monthly salary of Rs 20, 000/- to get an Indian Bank used car loan sanctioned.

    Documents required

    1. Fully filled-in application form
    2. ID proofs - PAN Card / Passport / Voter’s ID / Driving License
    3. Proof of residence - Voter’s ID / Passport / Telephone Bill / Property Tax Receipt / Electricity Bill
    4. Proof of Business address for businessmen and entrepreneurs
    5. Proof of Employment.
    6. Salary Certificate
    7. Proof of additional income - Rent receipts, Interest on investments, etc.
    8. Balance Sheets for the last 3 financial years for Self-employed professionals
    9. Income Tax Returns for the last 3 years (if applicable)
    10. Wealth Tax (if applicable)
    11. Photocopy of Driving License
    12. Quotation for the vehicle financed from an authorized dealer

    Indian Bank Used Car Loan Interest Rates

    Indian Bank’s Vehicle Loan can be used to purchase a used car, with the interest on this determined on the basis of MCLR or Base Rate. Existing borrowers who were previously paying interest computed via base rate can migrate to the new MCLR based platform.

    Indian Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)

    MCLR based interest rates have been implemented following a directive from the RBI. These rates reflect current conditions, taking variables like operating costs, repo rate, CRR, etc. into account. The table below highlights the benchmark MCLR rates at Indian Bank.

    MCLR Benchmark Tenure (Period) Benchmark Rates (MCLR)
    Overnight 9.20%
    1 month 9.25%
    3 months 9.30%
    6 months 9.35%
    1 year 9.45%
    3 years 9.55%
    5 years 9.70%

    Used car loan interest rates – May 2016

    The tenure and relationship a borrower has with Indian Bank can play a key role in determining the final interest payable. The bank can add a certain percentage over and above the current MCLR, as per its own discretion.

    Indian Bank Base and Prime Lending Rates (For existing borrowers)

    Base Rate 9.65% per annum, effective 07/10/2015
    Prime Lending Rate 14.20% per annum, effective 08/06/2015

    Indian Bank interest rate for used cars (Based on Base Rate)

    Existing customers who wish to continue with their current mode of payment will be required to pay an interest according to the date of loan sanction. The table below highlights the applicable rates.

    Date of loan sanction Repayment period Interest rate (per annum)
    On/After 01/05/2012 All tenures BR + 3.25%
    Before 01/05/2012 3 years and below 11.95%
    Before 01/05/2012 More than 3 years 12.20%

    Note: Rates mentioned above are accurate as of June 7, 2016. Indian Bank has the power to change these rates without prior intimation and borrowers should check prevailing rates with the bank.

    EMI calculator for Indian Bank Used Car Loans

    Any individual looking to avail an Indian Bank used car loan, should first understand how much that loan would cost him. He needs to understand how much he will be spending on the loan in the long run to efficiently manage his finances. EMI calculators are the best tools to accurately project your loan repayments inclusive of the total expenditure on the EMIs and interest rates. BankBazaar’s used car loan calculators are designed to conveniently deliver repayment schedules only with a few inputs. The EMI calculator for used car loans is present under the “Finance Tools” menu on the BankBazaar homepage. Inputs like loan tenure, loan amount, interest rates and processing fees are required to be entered by customers looking to get a detailed repayment forecast.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Indian Bank Used Car Loan Reviews

    • Indian Bank Car Loan
      "Good Experience"
      0.5 4.0/5 "Great!"
      Indian Bank service is good, they just taken 2 days of time to sanction the car loan . Because I am an existing customer, but still the bank charged more interest around 9.5% for the loan amount of Rs. 4.5 lakhs with the loan period of four years.
      Was this review helpful? 2
      , itanagar
      Reviewed on Apr 14, 2019
    • Indian Bank
      Indian Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this Car loan a while back and the experience has been pretty good where the process did not took much time to complete. The loan amount and the interest rate with them had been fine and they had not taken any charges such as processing fee.
      Was this review helpful? 1
      , chennai
      Reviewed on Mar 26, 2019
    • Indian Bank Car Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      Got my car loan from Indian bank , where the rate of interest is high of promising one They took few days for approval and documentation. Where i use to pay monthly through ECS for 5 years . They issued the Demand draft after that only they asked for sign for the approval . And there are no processing fees.Overall, I am satisfied with CAR loan from Indian bank.
      Was this review helpful? 3
      , bangalore
      Reviewed on Jul 18, 2018
    • Indian Bank Car Loan
      "Parameters are very rigid"
      0.5 1.0/5 "Really Bad"
      Parameters are very rigid as Indian bank does not deviate from its norms. They always want to to be on the safer side,even though i hold my salaried account with them they are not considering my profile which is unfair they are not giving a chance to me. They simply stated that credit score is not good there by refused to offer the loan
      Was this review helpful? 0
      , coimbatore
      Reviewed on Sep 30, 2017
    • Indian Bank Car Loan
      "Very good services"
      0.5 4.0/5 "Great!"
      I have taken a car loan from Indian Bank and the services are good. The process was quick and the documentation was not much and manageable. The interest rate and processing charges was also pretty reasonable. I got the loan on time and the after loan process is good.
      Was this review helpful? 0
      , kolkata
      Reviewed on Sep 26, 2017
    • Indian Bank Car Loan
      "Excellent service"
      0.5 3.5/5 "Pretty good"
      I got the car loan with the interest rate of 9.4% and I have submitted all my required documents, within a day time I got the loan from Indian bank. My friend is employed in Indian bank through his referral, I got the loan with INDIAN Bank. The rate of interest is very much nominal with INDIAN Bank.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 07, 2017
    • Indian Bank Car Loan
      "Very good service "
      0.5 4.0/5 "Great!"
      It was a good experience with Indian Bank related to the car loan application process.They have processed the loan within a days time.The interest rate applied was quite common.They have not applied any additional charges in the loan process.
      Was this review helpful? 3
      , chennai
      Reviewed on Mar 15, 2016
    • Indian Bank Car Loan
      "Perfect Bank"
      0.5 5.0/5 "Blown Away!"
      Indian Bank was perfect for my car loan. Though the process was long. It took 15 days. But I was given what they have promised. There was no hidden charges or a increase in rate of interest. It was a excellent experience.
      Was this review helpful? 4
      , chennai
      Reviewed on Nov 06, 2015
    • Indian Bank Car Loan
      "Better service"
      0.5 4.0/5 "Great!"
      My car loan was approved from INDIAN bank in the month of July, 2015. Since I am holding my savings account with them they were really helpful. They have offered me 10.50% interest rate for my car loan with zero processing fee. Their customer service team are really supportive.
      Was this review helpful? 2
      , pune
      Reviewed on Aug 28, 2015
    • Indian Bank Car Loan
      "Good"
      0.5 4.0/5 "Great!"
      Interest rate and processing fee charged were very good enough.The car loan disbursement was done within 10 days as the bank manger was my friend. Documentation was good but all the process was completed by myself by visiting the bank directly. No customer service is given by the bank. Only the eligible enough customers can approach the bank for the process.
      Was this review helpful? 1
      , rajahmundry
      Reviewed on Jun 29, 2015
    • Indian Bank Car Loan
      "Very friendly. "
      0.5 5.0/5 "Blown Away!"
      I never thought that a government bank would be so friendly. The staff were very kind and they assisted me in all the documentation procedures and the processing was very fast. I took my loan in a branch in Vellalore and the branch was pretty new. The premise was very neat.
      Was this review helpful? 3
      , coimbatore
      Reviewed on Nov 25, 2014
    • Indian Bank Car Loan
      "Very friendly. "
      0.5 5.0/5 "Blown Away!"
      I never thought that a government bank would be so friendly. The staff were very kind and they assisted me in all the documentation procedures and the processing was very fast. I took my loan in a branch in Vellalore and the branch was pretty new. The premise was very neat.
      Was this review helpful? 1
      , coimbatore
      Reviewed on Nov 25, 2014
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