In today’s world, a car is more of a necessity than luxury. With banks providing car loans and used car loans, it is very easy to bring home your dream car. It provides you with the upfront money that you need to get a car. If you are planning to buy a used car, South Indian Bank is more than ready to help. The bank offers minimal interest rates and does not include any hidden charges.
Type of Vehicle – You can buy any type of used vehicle including private cars, taxis, commercial vehicles and agricultural vehicles.
Cost of Vehicle – South Indian Bank provides you with the basic cost, accessories, taxes, duties, onetime tax and the insurance premium for the first year period.
Repayment Mode – The maximum time period provided by South Indian Bank for repayment of loan is 5 years.
Loan Amount – The minimum loan sanctioned is Rs. 2 lakh and there is no fixed upper limit set for the loan amount.
Guarantor – In case, there is no collateral security, the average worth of the signatories to the loan document should add up to twice the loan amount. If the borrower is married, then the spouse should also be a part of the loan application as a co-borrower.
Individuals who have availed a Mobi Loan to purchase a pre-owned car will be eligible to pay differential interests, depending on a number of factors. One such factor is the MCLR, with all new borrowers automatically falling under its purview.
South Indian Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
MCLR rates for the current month are highlighted in the table below. These rates are liable to change on a regular basis.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
Used car loan interest rates
Parameters like the gender, occupation and purpose of vehicle can impact the final interest payable, with the table highlighting the rates for multiple purposes.
|Loan availed with collateral||MCLR (1 year) + 0.30%|
|Loan availed without collateral (borrower from non-priority sector)||MCLR (1 year) + 0.80%|
|Loan availed without collateral (borrower from priority sector)||MCLR (1 year) + 0.55%|
South Indian Bank Base and Prime Lending Rates (For existing borrowers)
|Base Rate||10.00% per annum (effective 11/11/2015)|
|Prime Lending Rate||15.00% per annum (effective 11/11/2015)|
South Indian Bank interest rate for used cars (Based on Base Rate)
Individuals who have availed a loan before MCLR guidelines were issued can continue paying an interest according to their existing plan or migrate to MCLR. Interest rates for borrowers who do not switch will depend on factors like tenure and banking history of borrower. South Indian Bank could add a certain percentage over and above the current base rate, with the final rate decided at its own discretion.
Note: Interest rates mentioned here are for the month of June (2016). These rates are subject to change at the sole discretion of SIB, without prior notice. Eligible borrowers should check rates prevailing at the time of their application.
How long will it take to process the loan application?
It takes three days to process the loan application once all the documents are submitted.
Is foreclosure of loan allowed?
Yes. Borrowers can choose to pre-pay the loan any time after 6 months of availing the loan. A fee on the outstanding loan amount will be charged as prepayment penalty.