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  • Vijaya Bank Car Loan Interest Rates is Rated as "Excellent!" by 9 Users

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    Vijaya Bank Car Loan Interest Rates

    Vijaya Bank was established in 1931 in Mangalore to promote banking practices and entrepreneurship amongst the farmers in Dakshina Karnataka. After becoming a scheduled bank in 1958, Vijaya Bank has grown into a leading national level bank and currently has a network of 1512 branches. Additionally, Vijaya Bank also has 1528 ATMs and 48 extension counters across various states in the country. Offering an array of banking products and solutions, Vijaya Bank leverages the latest technology to offer world class services to customers. Vijaya Bank’s portfolio consists of cards, mobile banking, internet banking, phone banking, savings, deposits, loans, remittances, etc.

    Apply for Car Loan Online

    The Vehicle Loan scheme from Vijaya Bank can be availed for the purchase of new cars by all types of applicants. Vijaya Bank generally sanctions up to 85% of the vehicle or the invoice value and the applicant is required to put in the rest. Vijaya Bank car loans can be taken for a period of up to 84 months at a floating rate of interest. Customers have to submit the required documentation and application form to Vijaya Bank to get a car loan sanctioned without any hassles.

    Vijaya Bank Car Loan Interest Rates 2018

    Vijaya Bank provides auto finance for all types of car models at attractive interest rates. Customers aged between 21 and 70, who are Government employees, Corporate or private organisation employees, pensioners, Professionals and self-employed businessmen are eligible to procure a Vijaya Bank Car loan. The interest rates offered for a Vijaya Bank car loan are floating rates, which are determined depending on the current base rate of the bank. Since car loans carry floating interest rates, customers do not have pay any foreclosure charges, when they prepay their loans.

    Base Rate of Vijaya Bank - 9.65%

    New Car Interest Rates - FLOATING
    Loan Tenure of up to 84 months Base Rate (9.65%) + 0.40% = 10.05%

    Annual Percentile Rate for Car loans - Individual Customers

    Vehicle loan for up to Rs 2. lakhs 10.25%
    Vehicle loan - Above Rs 2. lakhs 10.30%
    Loan Tenure Maximum Tenure - 84 months
    Loan Margin 15% for new cars
    Processing Charges Ranging from 0.1% to 0.55%, depending on the loan amount.
    Quantum of Loan Up to 85% of the cost or invoice value. 100% of the invoice value or cost of the vehicle will be given during the following scenarios - Salaried Employees - If the salary mandate is provided by the employer and the applicant’s salary is remitted through Vijaya Bank. If the mortgage of a property secured to an existing home loan is provided as security.

    How do you calculate Interest Rates for a Vijaya Bank Car Loan?

    A customer can conveniently repay a Vijaya Bank car loan through equated monthly installments or EMIs, taken according to their financial situation. The equated monthly installment is the total amount that has to be paid by the borrower, on a monthly basis to Vijaya Bank after obtaining the car loan. The EMI amount includes the principal amount and the floating interest rate offered by Vijaya Bank. When the loan tenure begins, borrowers will have to pay huge portions of the monthly installment as interest charges, with a small portion allotted for the principal amount. As the car loan tenure advances, the principal amount to be repaid increases significantly, with the interest rate amount reduced.

    The EMI for a Vijaya Bank car loan can be calculated as follows -

    EMI (E) = [P x r x (1+r) ^n]/ [(1+r) ^n-1]


    P = The Principal Loan Amount

    R = The Interest rate charged per month. Vijaya Bank charges a floating interest rate of up to 10.05% for all types of customers, which is calculated as the base rate plus 0.40%.

    N = Number of monthly installments i.e. the number of years opted for the repayment of loan.

    For a principal amount of Rs. 1, 00,000 given at an interest rate of 10.05% and a loan tenure of one year, an estimate of the total sum of EMIs that has to be paid by the borrower is Rs. 1, 05, 527, out of which the interest will be around Rs. 5527.

    In the following example, for a car loan amount of Rs. 4,00,000 to be repaid in 60 months at an interest rate of 10.05% from Vijaya Bank (Calculations based on EMIs paid in advance):

    Year EMI Amount Interest Amount Principal Amount Balance Due
    2015 Rs. 25,526 Rs. 9,920 Rs. 15,606 Rs. 3,84,394
    2016 Rs. 1,02,104 Rs. 35,625 Rs. 66,479 Rs. 3,17,915
    2017 Rs. 1,02,104 Rs. 28,627 Rs. 73,477 Rs. 2,44,438
    2018 Rs. 1,02,104 Rs. 20,893 Rs. 81,211 Rs. 1,63,227
    2019 Rs. 1,02,104 Rs. 12,344 Rs. 89,759 Rs. 73,467
    2020 Rs. 76,578 Rs. 3,111 Rs. 73,467 Rs. 0

    The total interest to be paid towards a Vijaya Bank Car Loan for an amount of Rs. 4, 00,000 would be Rs. 81893.

    Factors affecting Vijaya Bank Car Loan Interest Rates

    Interest rates for a Vijaya Bank car loan might be determined based on various factors and also on the customer’s profile. Some of the key factors which might affect interest rates are as follows -

    Down Payment - The down payment amount given by a borrower towards a car loan plays an important part in determining the interest rates. Making a huge down payment might be difficult, but definitely benefits the borrower in the long run. Banks will give better deals on car loans and will give lower interest rates if the customer makes an acceptable amount as the down payment. A lump sum down payment amount also lowers the monthly installment amount during the loan tenure.

    Income - The income criteria of an applicant is generally given more weightage than any other factor. Banks look into the annual income earned by an applicant and decide on a car loan deal based on that. Even the interest rate offered might go up or down based on that. Customers can always add a co-applicant to improve their income criteria, when they apply for a Vijaya Bank car loan.

    Market Fluctuations - Interest rates tend to vary with market conditions and also due to any sudden changes. The inflation rate is a major factor that affects car loan interest rates. The interest rate might increase if the inflation rate goes up and vice versa. Interest rates might also change due to rate revisions done by the Reserve Bank of India on a periodic basis.

    Car Model - Sometimes the car model selected by the borrower might affect the interest rates offered by the lending institution. Since the hypothecation of the new vehicle is mandatory while availing a car loan, banks will always take into consideration, the car model before deciding on a particular interest rate for the customer. The reputation and the resale value of the car model chosen are also additional factors that will be considered. This is generally given a thought because, in case the borrower is not able to repay the vehicle loan back, the lender might seize the car and sell the car to recover the loan amount. So when an individual chooses a car model, he must make sure that it fits right into his budget and repayment capacity.

    How does CIBIL score affect Vijaya Bank Car Loan Interest rates?

    Having a good CIBIL score is a key criteria to get a low interest rate for any new car loan. Banks generally give preference to customers who have a good score with a steady income and regular payment patterns. These type of applicants are seen to be more reliable and will not have any hassles repaying the car loan. Banks will offer the best possible deal and low interest rates to customers with good scores. Customers who carry a low score might not be able to get an affordable car loan interest rate and might sometimes face rejections from lenders.

    Key Pointers to know about Vijaya Bank Car Loan Interest Rates

    • Vehicle loans taken using floating interest rates might vary depending on market fluctuations and customers should be aware of these constant changes.
    • The floating interest is always determined depending on the prevailing base rate of Vijaya Bank and might be updated periodically by the lender.
    • Vijaya Bank gives the same floating interest rate for all types of borrowers for car loans and does not vary the rate depending on the car model or the selected loan tenure.

    Car Loan Reviews

    • Vijaya Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken a car loan with Vijaya bank and my experience was good, the loan amount was based on my requirement and the rate of interest was nominal when compared to others. Customer service was good and the tenure period for this loan is 5 years.
      Was this review helpful? 1
      , bangalore
      Reviewed on Nov 29, 2018
    • Vijaya Bank Car Loan
      0.5 5.0/5 "Blown Away!"
      I am holding the car loan from VIJAYA BANK from past 2years. The rate of interest for my loan is 9.5%. And i pay the dues monthly through the SBI and they withdraw my money from that bank.I feel i am happy to take a car loan from this bank.
      Was this review helpful? 3
      , bangalore
      Reviewed on May 02, 2018
    • Vijaya Bank Car Loan
      "Experience is good"
      0.5 4.0/5 "Great!"
      My car loan is from Vijaya Bank and the banking services are good. Though a government sector bank, the process was without any delay and it was clear. The interest rate and charges was also reasonable. I receive the disbursement on time and as promised.
      Was this review helpful? 1
      , nagpur
      Reviewed on Sep 04, 2017
    • Vijaya Bank Car Loan
      0.5 5.0/5 "Blown Away!"
      My car loan is running in Vijaya bank. I got this four wheeler loan from government sector bank. The interest rate is 10.5% and it is same in almost all the banks. Actually the loan got approved in just two days and I got the amount in third day. So it went simple.
      Was this review helpful? 1
      , pune
      Reviewed on Aug 09, 2017
    • Vijaya Bank Car Loan
      0.5 4.0/5 "Great!"
      I got the car loan with Vijaya bank and the interest rate was nominal one with them. The loan amount got disbursed to my account within twenty days of time. Customer service is fine with them and the documentation charges were around 1000 Rupees to 2000 Rupees.
      Was this review helpful? 3
      , bangalore
      Reviewed on Jun 29, 2016
    • Vijaya Bank Car Loan
      "Excellent !!!!!"
      0.5 5.0/5 "Blown Away!"
      On the same day my car loan was approved by vijaya bank the day i approached them. Interest rate was 10%with 0% processing fee. Documentation process was fine like within half hour all the process was completed which was too fast.
      Was this review helpful? 5
      , lucknow
      Reviewed on Dec 09, 2015
    • Vijaya Bank Car Loan
      "Quick Disbursal!"
      0.5 5.0/5 "Blown Away!"
      Lot of documents were collected for the car loan process with Vijaya Bank. The vehicleâ??s on road price is 5 .73L. I made a down payment of 90K and the remaining amount is done through loan. I completed the loan amount and need to visit the branch for collecting paper works.
      Was this review helpful? 5
      , noida
      Reviewed on Nov 26, 2015
    • Vijaya Bank Car Loan
      "Need To Improve Responsiveness.."
      0.5 1.0/5 "Really Bad"
      The experience with Vijaya bank was not that good. The response was very bad. I applied for a car loan, all the procedures were over in 3 days and my loan amount was sanctioned but they did not provide me the DD. I raised a complaint against the manager of the branched and then they issued it. As a penalty the manager paid the first monthâ??s interest rate.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Aug 01, 2015
    • Vijaya Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      Vijaya Bank provide very good customer service.I had applied for a Car Loan from the Bank.The entire process went very smoothly.The executive from Vijaya Bank gave me all the information about the documents that I need to submit. Interest Rate and fee are all good of Vijaya Bank.
      Was this review helpful? 16
      , bangalore
      Reviewed on Apr 30, 2014
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