Karnataka Bank provides Used Car Loan for the purchase of second hand vehicle not older than 3 years from the date of its registration. Karnataka Bank Limited is a scheduled commercial Bank which provides a wide range of banking and financial services for Corporate Banking as well as Personal Banking. It grew in strength through the conglomeration of Sringeri Sharada Bank Ltd., Chitradurga Bank Ltd. and Bank of Karnataka and now has presence with a network of 655 branches in 20 states and 2 Union Territories.
Karnataka Bank’s Car Finance product can be utilised to purchase a pre-owned car, with this loan coming at competitive interest rates. Interest on this product is computed based on MCLR (for new customers) or Base Rate (for existing customers).
Karnataka Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
Operational MCLR benchmark rates at Karnataka Bank are mentioned in the table below. These rates are a reflection of current fiscal trends, taking a number of factors into account.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
Used car loan interest rates – May 2016
Karnataka Bank charges an interest equivalent to 14.45% of the loan amount on its used car loan. This rate is indicative of a 1 year MCLR.
Karnataka Bank Base and Prime Lending Rates (For existing borrowers)
|Base Rate||10.25% per annum, effective 05/10/2015|
|Prime Lending Rate||15.75% per annum, effective August 3, 2011|
Karnataka Bank interest rate for used cars (Based on Base Rate)
Individuals who have purchased a pre-owned car financed by Karnataka Bank will have to pay an interest of 14.50% per annum. They can, however, migrate to the MCLR platform, depending on their convenience.
Note: Interest rates mentioned here are valid as of June 7, 2016. These rates are subject to change at the sole discretion of Karnataka Bank, without prior intimation. Applicants should check prevailing rates while applying for a used car loan.
Select car loan scheme as “KBL car finance for second hand vehicle”, then select loan amount and loan tenure in years ranging from 1 year to 3 years. Once these values are entered, interest rate is automatically filled in. Click on the option to “calculate EMI” which is available at the end of the form and based on the information that has been entered, the EMI field is automatically filled in with the amount. The final repayment value provided are indicative figures and may be subject to change.