Indian Bank Used Car Loan

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.

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.

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

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.

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

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.

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)

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.

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.