Indian Bank Car Loan – myITreturn Help Center

Interest Rate Range	Processing Fee Range	Loan Amount	Tenure Range
9.95% Fixed	0.229% (max. ₹ 10,191/-) One time fee	2Crs Max	7 Years

Documents Required

KYC-PAN, address & ID proof
Income proof, bank statement and one photograph

What you'll love

No guarantor required

Eligibility Criteria

Age at least 18 and less than 60
Minimum income required Rs.3,00,000 per annum

Think about

Application available only in branch

About Indian Bank Car Loan

Indian Bank is one of the premier public sector banks in the nation. August 1907, it had been based on 15. According to 31 March 2017, the lender has a group of employees. In accordance with 31 March 2017, Indian Bank reported a entire company of Rs.3,14,654 crore and a net gain of Rs.1,405.68 crore. From auto loans to education loans and home loans, Indian Bank provides a range of loan strategies in an attempt to provide the citizens of the country simple access to credit.

Features of Indian Bank Car Loan

Borrowers should submit a hypothecation of their car to be purchased as collateral to the bank.
For car loans surpassing Rs.10 lakhs, an extra security equivalent to the borrowed sum has to be offered in the kind of Fixed Deposit receipts, LIC coverage, mortgage of immovable property or NSCs.
The eligible customers for a car loan from Indian Bank include salaried employees, self-employed individuals, businessmen, professionals, pensioners, NRIs, and workers of other banks with NOC from companies worried with minimum 3 years work experience.
The loan tenure for a car loan from Indian Bank ranges from 12 to 84 months based on the loan amount and the sort of loan - new or used car loan.
Indian Bank is one such car loan lender in the nation. The lender provides auto loans for the purchase of secondhand and new two-wheelers and four-wheelers. Here are some characteristics of an Indian Bank car loan:
Used auto loans from Indian Bank may be used to purchase second-hand/pre-owned cars which aren't over 3 years old. The cars must be certified valuer or by a respectable automobile engineer.
The interest of an Indian Bank car loan starts at 9.95% p.a.
The best loan amount an individual can obtain from the bank is Rs.200 lakh for four-wheeler loans.

Documents Required to Apply for an Indian Bank Car Loan

In order to apply for a car loan from Indian Bank, the applicant must download the application form from the bank website or get it from the nearest bank branch. Submit the duly-filled and signed form along with the necessary identity proof, age proof, income proof, and address proof. Here is a list of documents required to apply for a car loan at Indian Bank:

Recently taken passport-size photographs.
Identity proof - PAN card, voters ID, Driving License, Passport or Aadhaar card.
Address proof - Ration card, voters ID, Passport, property tax receipt or utility bills such as electricity or telephone bills. Businessmen and industrialists have to submit proof of business address.
Income proof/employment proof - The latest salary slip and bank statement.
Proof of other income such as rent or interest on investment, if any.
Income proof of businessmen and self-employed individuals - Last 3 years' balance sheet, income tax or wealth tax returns of the past 3 years.
A copy of the applicant's driving license.
Quotation for the car to be purchased from an authorised dealer.

Applicants can visit the bank website to locate the nearest Indian Bank branch in their locality using the Branch Locator tool.

Indian Bank Car Loan Interest Rate

Indian Bank offers car loans at floating interest rates. Indian Bank auto loan rate for new automobiles is 9.95% and used cars is 11.30%.
The interest rate of a car loan depends on the following factors:
Credit score: A lawyer having a high credit score of 700 and over can find a lower interest rate than an individual having a bad credit score.
Existing customers: Banks reward the loyalty of the clients by offering a very low interest rate on loans to present clients with a pre-established relationship with the lender.
Loan tenure: A brief loan payable generally means a greater EMI but lower interest payment whereas a very long loan tenure means a lower EMI and higher interest payments.

Indian Bank Car Loan Eligibility

Before applying for a car loan, applicants must make it a point in order to avoid loan rejection to check their car loan eligibility on the bank website. Loan rejections may have a negative impact on an individual's credit score. Indian Bank car loan eligibility standards are as follows:

Age: The applicant must be 21 to 65 years of age.
Income: Salaried or self-employed applicants must have a minimum annual income of Rs.2.4 lakh.
Credit score: Individuals with a credit score of 700 or above are eligible for an Indian Bank car loan.
Occupation: The applicant must have a minimum work experience of 2 years in the same field.

Those who have bad credit scores can improve it by paying their credit card bills on time and making EMI payments on the due date.

Indian Bank Car Loan EMI Calculator

With the advent of technology, it has become easier to calculate car loan EMI using the free online car loan EMI calculator available on the bank website or a reliable third-party website. It is easy and simple to use. Enter car loan details such as the loan amount, interest rate, and loan tenure into the tool and click on the ‘Calculate’ button. The result will be displayed in the form of an amortisation table which represents the loan repayment schedule.

The EMI result will consist of a breakdown of the principal amount, interest payment, EMI, outstanding due after each payment, etc. Varying combinations of the loan tenure, loan amount, and interest rate can be entered into the tool to get revised loan repayment schedules. Depending on the car loan EMI, borrowers can choose an affordable loan amount and a suitable loan tenure.

Indian Bank Car Loan FAQs

Is there a prepayment charge on car loans offered by Indian Bank?
Car loan prepayment is not allowed at Indian Bank. Prepayment is the option to prepay a part or whole of the loan amount before the end of the loan tenure. Usually, borrowers opt for this feature so as to get rid off their car loan in a short period of time and to save up on interest.
Does Indian Bank offer car loan top-up?
Yes, borrowers can avail an additional top-up car loan at Indian Bank provided they meet the eligibility criteria set by the bank.
What is a foreclosure charge?
In case a borrower wants to repay the loan amount before the end of the loan tenure, the bank charges a fee called the foreclosure fee. It is usually a percentage of the outstanding loan amount that the borrower is ready to repay before the end of the repayment period. Indian Bank allows borrowers to foreclose their auto loans after 1 EMI.
What is a processing fee?
Banks charge borrowers a small percentage of the principal loan amount as fee to process their car loan called the processing fee. Some banks waive off the processing fee on special occasions or for existing customers. Indian Bank charges a processing fee of 0.229% of the loan amount, subject to a maximum of Rs.10,191 plus tax.
What is the maximum repayment period of an Indian Bank car loan?
Indian Bank offers car loans for a maximum loan tenure of 84 months/7 years depending on various factors such as the type of the loan, loan amount, and the eligibility criteria of the applicant.
Why is it important to calculate car loan EMI?
A car loan is repaid is through equated monthly installments which consist of the principal and interest amounts over a specified period of time called the loan tenure. Car loan EMI calculation depends on factors such as the car loan amount, loan tenure, interest rate, processing fee, and prepayment. Borrowers can find out how much their car loan will cost them on a monthly basis based on the car loan EMI calculation. What’s more, depending on the car loan EMI results, applicants choose a suitable loan tenure so as to save up on interest payments. Likewise, borrowers can opt for an affordable car loan depending on the car loan EMI results.
What is a debt-to-income ratio?
It is the ratio between a borrower’s income and the loan EMI that he or she has to pay each month. It is advisable to maintain a low debt-to-income ratio so as not to default on a car loan. Borrowers must ensure their EMI payments don’t exceed more than 50% of their loan EMI. A high debt-to-income ratio may lead to skipped or delayed EMI payments which can have a negative effect on the borrower’s credit score.
What is car loan EMI formula?
Car loan EMI is calculated based on the below formula:

E = P*r* (1+r)^n/([(1+r)^n]-1), where E is the equated monthly installment, P is the principal loan amount, r is the interest rate, and n is the loan tenure.
What is a good credit score?
A credit score of 700 and above is considered to be a good credit score. An applicant with a good credit score has higher chances of loan approval than an applicant with a bad credit score. Similarly, a good credit score may also increase the chances of getting a low-interest rate car loan. The credit score of an applicant represents his or her creditworthiness.
What is minimum income requirement for a car loan at Indian Bank?
Applicants must have a minimum net annual income of Rs.2.4 lakh to be eligible for a car loan from Indian Bank. The income criteria of an applicant represent his or her capacity to repay the loan without defaulting.

Applicants must have a minimum net annual income of Rs.2.4 lakh to be eligible for a car loan from Indian Bank. The income criteria of an applicant represent his or her capacity to repay the loan without defaulting.

GST of 18% is applicable on all banking products and services from the 1st of July, 2017.