Founded in the year 1925, Syndicate Bank holds the honor of being one of the oldest commercial banks in India. Originally known as Canara Industrial & Banking Syndicate Limited, Syndicate Bank got its new name in 1969 after it merged with 20 other banks like the Maharashtra Apex Bank and the Southern India Apex Bank Limited. Syndicate Bank has been conferred with various awards for excellent performance and service and currently operates with a wide spread network of over 3300 branches. The spectrum of services offered by the bank include finance, insurance, consumer, corporate & investment banking, wealth management, private equity, mortgages and credit cards.
For those wishing to purchase a second hand vehicle, Syndicate Bank offers the perfect financial aid. The SyndVahan Used Car Loan by Syndicate Bank comes with a host of advantages like flexible repayment period, low interest rate, high loan amount and more.
Following are some of the noteworthy features of the SyndVahan Used Car Loan.
The quantum of loan available for second hand vehicles will be either (i) 70% of the value of the car, or (ii) thrice the applicant’s net annual income or (iii) Rs 3 lakh, whichever of the three is less.
The maximum tenure available for the SyndVahan Used Car Loan is up to 60 months.
The SyndVahan Used Car Loan can be availed by individuals, proprietorship, partnership firms, agriculturists, trusts, societies and other legal organizations. This loan is however is not available to HUFs and directors or employees of corporates. In order to apply for this loan, eligible applicants must have an annual income of not less than Rs 1 lakh. Also, income of the applicant’s spouse or any major children will be taken into consideration for loan eligibility.
Purchasing a new or used vehicle can be a lot easier after securing financing from Syndicate Bank. The bank facilitates the purchase of two and four wheeler vehicles through its SyndVahan loan scheme. Interest rates are now being calculated on the MCLR basis, or the base rate basis. Customers who have already taken this loan can shift to the MCLR platform if they so wish.
Syndicate Bank Marginal Cost of Funds Based Lending Rate (MCLR)
New borrowers of the SyndVahan vehicle loan will be charged interest based on the new MCLR system, which was implemented after an RBI order mandated the same. The new MCLR system rates reflect the current economic conditions, as they take into account factors like CRR (Cash Reserve Ratio), current repo rate, operating costs, etc.
|Marginal Cost of Funds Based Lending Rate (MCLR) Tenure / Period.||Benchmark Rates (MCLR)|
Used car loan interest rates for May 2016
There are some factors that affect the final interest rate payable by a customer to the bank, such as the tenure chosen, the negotiations with the bank representative, etc. The bank, at its own discretion, can add a percentage of interest over and above that of the MCLR.
Syndicate Bank interest rate for used car loan
These interest rates mentioned below are for the base rate system, and existing customers can shift to the MCLR based system if they wish.
|Base Rate + 0.65% p.a.||for four wheelers.|
|Base Rate + 2% p.a.||for two wheelers.|
Note: Rates mentioned above are accurate as of June 7, 2016. Syndicate Bank can change these rates without any prior intimation to the public. It is strongly advised that any customer contact the bank and check the prevailing rates as on the date of loan requirement.Documentation Required for Syndicate Bank Used Car Loan
Customers must submit the following documents in order to apply for the SyndVahan Used Car Loan.