Karur Vysya Bank Used Car Loan
Karur Vysya Bank's used car loan, called the Flexi Mobile Loan, finances pre-owned cars up to five years old for personal or business use. Resident individuals can borrow with the vehicle hypothecated as security, repay over up to 60 months, and get assistance from a KVB representative at their location.
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.
Unique Features of KVB Used Vehicle Loan:
- It could be accessed by every resident Individuals (except those involved in a vehicle hiring business)
- The loan is approved to buy pre-owned car (not older than five years) which is for business or individual use, except for vehicle hiring.
- For queries on the Flexi Mobile Loan, borrowers can call Karur Vysya Bank's customer care helpline on 1860 258 1916 (India) or +91 44-66217600 (international).
Maximum Loan Sum | Contact the bank |
Margin | 40% - 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 | Rs.3,000 for loans up to Rs.10 lakh; Rs.7,500 for loans above Rs.10 lakh |
Additional Terms & Conditions |
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Note: The interest rates are effective from 9 September 2022.
Karur Vysya Bank Used Car Loan Interest Rates
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 eligible to pay interest according to MCLR benchmarks. Existing borrowers can choose their interest computation mode.
Karur Vysya Bank also publishes an External Benchmark Rate (EBR-R) linked to the RBI repo rate on its official interest rates page, in addition to the MCLR and Base Rate benchmarks described below.
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) |
Overnight | 8..85% |
1 month | 8.75% |
3 months | 8.95% |
6 months | 9.15% |
1 year | 9.25% |
Karur Vysya Bank Base and Prime Lending Rates (For existing borrowers)
Base Rate | 9.20% per annum (effective 9 September 2022) |
Note: The interest rates are effective from 9 September 2022.
Karur Vysya Bank interest rate for used cars (Based on Base Rate)
Customers who availed a Flexi Mobile Loan before April 1, 2017 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 12.45% per annum (BR + 3.25%).
Note: Karur Vysya Bank reserves the right to modify/change interest rates without prior intimation. Some rates on this page could not be reconfirmed against Karur Vysya Bank's live rate pages at the time of this revamp, as noted above. Borrowers should check current rates while applying for a loan.
Summary
Karur Vysya Bank's used car loan (Flexi Mobile Loan) helps resident individuals finance pre-owned cars up to five years old for personal or business use, secured by hypothecation of the vehicle. Borrowers can repay over tenures of up to 60 months through multiple payment modes, with optional collateral and a bank representative available to assist at their location. Check the current interest rates, margin and fees in the tables above before applying for a Karur Vysya Bank used car loan.
FAQs on Karur Vysya Bank Used Car Loan
1.What is the Karur Vysya Bank used car loan?
The Karur Vysya Bank used car loan is offered under the bank's Flexi Mobile Loan, which finances pre-owned cars for personal or business use. It is secured against the vehicle through hypothecation. A bank representative visits the borrower to explain the process and take the application forward.
2.Who is eligible for the Karur Vysya Bank used car loan?
The Karur Vysya Bank used car loan is available to resident individuals, except those engaged in a vehicle hiring business. The car being financed must be for personal or business use rather than for hire. Eligibility is assessed by the bank on a case-by-case basis.
3.What is the maximum age of a car eligible for the Karur Vysya Bank used car loan?
A car must not be older than five years to qualify for the Karur Vysya Bank used car loan. This applies to pre-owned vehicles bought for either personal or business use. Vehicles used for hiring purposes are not eligible under this scheme.
4.What is the maximum repayment tenure for the Karur Vysya Bank used car loan?
The Karur Vysya Bank used car loan can be repaid over a tenure of up to 60 months for second-hand vehicles. Repayment is made through Equated Monthly Instalments (EMIs). A longer tenure lowers the EMI but increases the total interest paid.
5.What security does Karur Vysya Bank require for a used car loan?
Karur Vysya Bank secures the used car loan through hypothecation of the vehicle purchased with the loan. This means the bank holds a charge on the car until the loan is fully repaid. Ownership transfers fully to the borrower once repayment is complete.
6.Is collateral security mandatory for the Karur Vysya Bank used car loan?
No, collateral security is optional for the Karur Vysya Bank used car loan. Borrowers may offer NSC, KVP, LIC policies, bank deposits, or land and building as optional collateral. The vehicle itself remains the primary security through hypothecation.
7.Is a guarantor required for the Karur Vysya Bank used car loan?
A guarantee is voluntary for the Karur Vysya Bank used car loan. Where offered, the bank expects an appropriate sponsor with adequate net worth, satisfactory to the bank, such as a spouse, family member or friend. The requirement is assessed case by case.
8.Can I insure the vehicle bought under the Karur Vysya Bank used car loan?
Yes, insurance cover up to the loan amount is available through BAGIC under the Karur Vysya Bank used car loan, as per the borrower's choice. This protects both the borrower and the bank's interest in the hypothecated vehicle. Borrowers should confirm the current insurance terms with the bank.
9.How is the margin calculated for the Karur Vysya Bank used car loan?
Karur Vysya Bank sets a fixed margin requirement for the used car loan, meaning the borrower funds a portion of the vehicle's value from their own resources. The current margin percentage for used cars is listed in the loan terms table above. This margin does not apply to any collateral offered.
10.How much take-home pay must I retain after my Karur Vysya Bank used car loan EMI?
Karur Vysya Bank requires borrowers to retain a minimum share of their gross pay as take-home income after the loan instalment is deducted. The exact threshold is stated in the loan terms table above. This is assessed as part of the bank's affordability check.
11.How can I repay my Karur Vysya Bank used car loan?
Karur Vysya Bank used car loan payments can be made by Demand Draft, NEFT, online banking, RTGS, or direct account credit to the seller. Salaried employees may also have the EMI and interest deducted directly from their monthly salary by their employer. Borrowers should confirm the preferred payment mode with the bank.
12.What is MCLR and how does it affect the Karur Vysya Bank used car loan rate?
MCLR, or the Marginal Cost of Funds Based Lending Rate, is an RBI-mandated benchmark that Karur Vysya Bank uses to price the used car loan for new borrowers. The bank revises MCLR periodically based on its operating costs, the repo rate, and the cash reserve ratio. The applicable used car loan rate is calculated as a spread over the 1-year MCLR.
13.What is the Base Rate and how does it apply to the Karur Vysya Bank used car loan?
The Base Rate is an older lending benchmark that Karur Vysya Bank still applies to certain existing used car loan borrowers. It is used together with a fixed spread to compute the interest payable by borrowers who have not migrated to the MCLR system. The current Base Rate is listed in the interest rate section above.
14.Can existing Karur Vysya Bank borrowers switch from Base Rate to MCLR?
Yes, customers who availed a Flexi Mobile Loan before 1 April 2017 can choose to remain on the Base Rate system or move to the MCLR-based platform. Borrowers who prefer to switch should contact Karur Vysya Bank directly to initiate the change. The interest computation method affects the rate charged on the used car loan.
15.Does the interest rate on the Karur Vysya Bank used car loan change over time?
Yes, the interest rate on the Karur Vysya Bank used car loan is linked to a benchmark, either MCLR or Base Rate, that the bank revises periodically. Karur Vysya Bank reserves the right to modify these rates without prior intimation. Borrowers should check the prevailing rate with the bank before applying.
16.Is there a cap on the loan amount for the Karur Vysya Bank used car loan?
Yes, Karur Vysya Bank sets a maximum loan amount for its used car loan, with higher amounts considered on a case-by-case merit basis. The current cap is listed in the loan terms table above. Applicants should confirm the exact figure with the bank before applying.
17.Does Karur Vysya Bank provide home visits to explain the used car loan process?
Yes, once a request is made, a Karur Vysya Bank staff member visits the applicant's location to explain the Flexi Mobile Loan process in detail. This includes guidance on documentation and the steps involved in applying. The service is intended to make the used car loan process more convenient for the borrower.
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