Vijaya Bank was established in 1931 in Mangalore, Karnataka. In 1958, it became a scheduled bank. Vijaya Bank’s merger with nine smaller banks led to its accelerated growth towards becoming a large pan India bank between the years 1963 to 1968. On 15th April 1980 the bank was nationalized, and it currently has a wide network of 1512 branches, 48 Extension Counters and 1528 ATMs, across all 28 states and 4 union territories in India. Along with providing personal and corporate banking services, Vijaya Bank also offers used car loans under its retail lending scheme. The bank offers vehicle loans for the purchase of second hand/ used cars, which are not older than 5 years since manufacture.
The Vehicle Loan from Vijaya Bank can be used by individuals to purchase a pre-owned car at competitive interest rates. Interest rates for this loan depend on a number of factors, with the bank recently adopting an MCLR platform which takes current operating costs into account.
Vijaya Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
The table below highlights the current MCLR benchmark rates at Vijaya Bank for the month of May. These rates are typically designed to highlight current economic conditions, with changes expected on a regular basis.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
Used car loan interest rates – May 2016
Borrowers under the MCLR platform will be expected to pay an annual interest of 10.05% towards clearing their loan. This figure is computed as follows:
Interest rate = 1 year MCLR + 0.60% = 10.05% per annum
Vijaya Bank Base Rate (For existing borrowers)
|Base Rate||9.65% per annum (effective October 8, 2015)|
Vijaya Bank interest rate for used cars (Based on Base Rate)
Patrons who availed a car loan before MCLR benchmarks came into force have an option to choose their interest platform. Those who wish to continue with the old benchmark will be charged an interest which is typically a few percentage points over the base rate. The final interest rate depends on a number of factors and could vary from case to case.
Note: All rates mentioned here are as of May 2016. These rates are subject to change at the sole discretion of Vijaya Bank and borrowers should check rates with the bank before applying.
Vijaya Bank EMI calculator can be found on the bank’s website - in the home page as well as in the vehicle loan page. It’s easy to use and permits the user to add multiple values, i.e., a maximum of 3 different values to compare the EMI repayment for each individual value. The values to be entered are - loan amount, interest in percentage, installments or loan tenure that the customer wishes to opt for. Loan tenure or installments range from 1 to 480. Once these values are entered, click on “Compute” and in the “result” box the EMI that has to be paid per installment is shown.