Do you wish to purchase that dream car but has refrained because you know that you cannot afford it or do not want to deal with years of paying off the car loan? Then Karur Vysya Bank used car loan is just the thing for you. KVB’s Flexi Mobile Loan has proficiency to fund second hand cars as well as brand new vehicles. Once the request is made, a KVB staff member will come to your place to explain everything in detail and take you through the process.
|Maximum Loan Sum||
INR. 75.00 Lakhs If you need a higher amount, it will be taken into consideration based on certain merits.
|Margin||25 percent- For used cars (not Older than 5 Years)|
|Maximum Payment Tenure||60 Months (Second hand Vehicles)- EMI|
|Rate Of Interest Per Annum||BR + 3.25%|
|Main security||Hypothecation of car bought out of bank balance.|
|Collateral security||Optional (NSC/KVP/LIC Policies, Bank Deposits, Land & Building etc.,)|
|Warranty||Voluntary. An Appropriate Sponsor with adequate net worth , satisfactory to the Bank (if possible spouse or family members or friends)|
|Indemnification Coverage for the Mortgagor||Obtainable to the degree of Loan sum with BAGIC, billed by the Borrower. (As per choice of the loan applicant)|
|Processing costs||INR. 4000 + ST for Loans up to INR. 1 Million INR. 8000 + ST For loans above INR 1 Million|
|Additional Terms & Conditions||
Karur Vysya Bank’s Flexi Mobile Loan can be used to finance a pre-owned car, with borrowers paying a competitive interest on the loan amount. This interest varies from case to case, depending on the date of loan sanction, with borrowers who have availed a loan after April 1, 2016 eligible to pay interest according to MCLR benchmarks. Existing borrowers can choose their interest computation mode.
Karur Vysya Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
MCLR based rates came into effect following RBI’s new guidelines. Karur Vysya Bank modifies these rates based on its operating costs, repo rate, CRR, etc. The table below highlights the current rates.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
Used car loan interest rates – May 2016
Individuals who have availed a car loan under the MCLR platform will be required to pay an interest equivalent to 13.65% per annum. This rate is computed using a simple formula:
Effective interest rate = MCLR for 1 year + 3.60%
Karur Vysya Bank Base and Prime Lending Rates (For existing borrowers)
|Base Rate||10.40% per annum (effective 05/10/2015)|
Karur Vysya Bank interest rate for used cars (Based on Base Rate)
Customers who availed a Flexi Mobile Loan before April 1, 2016 can choose to stick to their existing interest mode or move to an MCLR based platform. Individuals who prefer the old mode of computation will be required to pay an interest of 13.65% per annum (BR + 3.25%).
Note: Karur Vysya Bank reserves the right to modify/change interest rates without prior intimation. Rates mentioned here are as of June 7, 2016. Borrowers should check current rates while applying for a loan.