The Nainital Bank Limited (NBL), also called as Nainital Bank, is a scheduled business bank incepted in 1922 by Mr. Govind Ballabh Pant and Shah Community. Started off as part of the Bank of Baroda, this bank has branched out predominantly in Uttarakhand and UP. Simultaneously it has opened around 120 branches in Delhi, Haryana and Rajasthan. Currently, it boasts of a total business of INR 550 crores (USD 860 million), and is attributed the status of a scheduled bank by the Reserve Bank of India.
Aside from personal banking such as personal loans, home loans, car loans , savings account, as well as corporate banking, rural and agricultural banking, NBL offers online and mobile banking facilities. Nainital Bank’s auto loan scheme is known as Suhana Safar Scheme for funding of automobiles. It is available for brand new and second hand cars too.
Who is eligible to apply for the Nainital Bank Used Car Loan?
Purpose of loans stated under the NBL Guidelines are:
You can avail up to INR 10 lakh loan to buy an old car, which should not be more than 35 percent of the current appraised price of the car. Note that, loan sum offered for new vehicles is INR 25 lakh. The interest rates are subject to change though the latest base rate is 10.25 percent and for used car loans, it is 10.50 percent with an added 0.25 percent. You can check with the bank if there are any special seasonal offers at the time of your application. Apart from this, no extra reductions are usually permitted.
The loan tenure for used car can be as long as three years, which makes it easy for the borrower to repay the EMIs without burning a hole in his/ her monthly budget. There is a slight change in this regulations for farmers and other agricultural laborers. The payment schedule is generally fixed for every six months, taking the harvesting pattern into consideration.
Individuals looking to purchase a used car can finance it using Nainital Bank’s Suhana Safar Scheme. Interests for this loan scheme are determined on the basis of sanction date, with an MCLR system in place for new borrowers.
Nainital Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
An MCLR based benchmark was introduced following a directive from the RBI. This benchmark changes regularly, with factors like current operating costs, CRR, repo rate, etc. impacting rates.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
Used car loan interest rates
Nainital Bank can choose to modify its MCLR benchmark rates, with the final interest computed after considering certain parameters. New car loan applicants will be required to pay an interest which consists of a spread over and above the MCLR rate. This spread varies from case to case, typically falling in the 1 to 4% range.
Nainital Bank Base and Prime Lending Rates (For existing borrowers)
|Base Rate||9.75% (effective October 21, 2015)|
|Prime Lending Rate||14.75% (effective September 24, 2012)|
Nainital Bank interest rate for used cars (Based on Base Rate)
Existing customers who refrain from migrating to the MCLR based system will continue paying interest determined by the base rate. The current applicable rate is 10% per annum. This is computed through a simple formula.
Interest rate = Base Rate + 0.25% = 10%
Note: Interest rates mentioned above are applicable as of June 8, 2016, with these rates subject to change without prior intimation. Individuals should check the rates with the bank while applying.