*Please note quotes shown will be from Our Partners

Car Loan

About Indian Bank

With over 20,000 employees and 2500 branches all over India, Indian Bank is one of the biggest public sector banks in India. Headquartered in Chennai, Indian Bank is an Indian state-owned financial services company, providing a multitude of financial services to the Indian population. Indian Bank, with its list of financial services, is serving the nationals with financial assistance to help them meet their dreams that seems difficult to achieve just because of monetary restraints. One of the several loans offered by Indian Bank is the private car loan.

Indian Bank Car loans: Overview

Indian Bank values an individual’s dreams of owning a car. In order to help the individuals live their dream of owning a car of their choice of model and make, Indian Bank car loan exists. Indian Bank’s IB Vehicle Loan is a specially designed loan scheme that gives car buyers freedom to choose their favorite car and then get it financed for the maximum value. Indian Bank car loan scheme-IB Vehicle Loan is appreciated and much availed by the intended car buyers for its attractive features like higher loan amounts, flexible loan tenures, and lowest interest rates. Over the years, as per customer’s response, IB vehicle loan has proved to be one of the best loan product offered by Indian bank.


Indian Bank values an individual’s dreams of owning a car. In order to help the individuals live their dream of owning a car of their choice of model and make, Indian Bank car loan exists. Indian Bank’s IB Vehicle Loan is a specially designed loan scheme that gives car buyers freedom to choose their favorite car and then get it financed for the maximum value. Indian Bank car loan scheme-IB Vehicle Loan is appreciated and much availed by the intended car buyers for its attractive features like higher loan amounts, flexible loan tenures, and lowest interest rates. Over the years, as per customer’s response, IB vehicle loan has proved to be one of the best loan product offered by Indian bank.


Types of Bank Car Loan from Indian Bank


Indian Bank offers car loan schemes for an individual looking for finance options to purchase a new car as well as an individual wishing to purchase a pre used car. To meet  the diverse needs of the car buyers, Indian Bank offers new car loan and pre used car loans as well.
 

  • Indian Bank Loan for a New Car


Indian Bank New Car Loan is a loan plan designed to meet the dreams of several people wishing to drive and own a new car. Indian Bank car loan helps individuals to manage finances for buying new passenger cars, SUVs and Multi Utility Vehicles (MUVs). Indian Bank provides car loan for new car on floating interest rate and easy terms & conditions.
 

  • Indian Bank Pre-Owned Car Loan

Indian Bank has planned special terms and conditions for pre-used car loan. The car loan offered by the Indian Bank for owning a pre-owned car is a boon for several individuals who wish to have an old or pre used car, but are procrastinating due to financial reasons. The Used Car Loan plan by Indian Bank is offered for buying passenger cars, Multi Utility Vehicles (MUVs) or SUVs. To apply for a Indian Bank car loan, the intended car buyer has to ensure that the used cars against which he needs mortgage amount should not be more than three years old.


Features of Indian Bank Car Loan
 

  • Indian Bank Car Loan can be availed by: Pensioners, NRIs, Indian Bank staff, professionals, businessmen, and salaried employees are qualified for an Indian Bank car loan. Employees of other banks with an experience of at least three years are also eligible for applying for the Indian Bank car loan.
  • Maximum Indian Bank Car Loan Amount: Indian Bank offers car loans for new four-wheelers up to an amount of Rs 2 crores.
  • Fees and charges: 0.229% of the total loan amount is charged as processing fees. The processing fee for Indian Bank Car Loan cannot exceed a maximum of Rs.10191/-.
  • Loan margin: Loan margin is 15% for new four-wheelers and 40% for pre-used cars
  • Tenure for loan by Indian Bank: Repayments for car loans can be made with maximum loan tenure of 84 months. This period does not include any moratorium or holiday period.
  • Security: The new vehicle needs to be hypothecated to the bank as security for the car loan.

Eligibility of the Indian Bank Car Loan

To be eligible to apply for Indian Bank Car Loan for a new car or pre-used car, an individual has to meet the requirements of pre-defined eligibility criteria. The Indian Bank has set its car loan amount eligibility criteria on the basis of different parameters like age of the applicant, employment type of the applicant, source of regular income of the applicant, on road price of the car and CIBIL Score of the applicant.
 

  1. Criteria for Nationality: The applicant must be an Indian resident, or must have relevant documents to corroborate NRI status.
  2. Criteria for Minimum & Maximum Age: Indian Bank has pre-defined the conditions of minimum and maximum age bracket for intended Indian bank car loan borrowers.
  • Minimum Age: The applicant’s age should be no less than 21 years to avail car loan offered by Indian Bank
  • Maximum Age: The applicant’s age at the time of loan maturity should be no more than 65 years.
  1. Criteria for Income: Car loan amount eligibility is based on applicant’s regular income as well. Applicant’s minimum gross monthly income should be no less than Rs.20000.
  • Salaried employees can get up to 20 times their gross monthly salary. They can also include their spouse’s income in the gross amount. The net take home pay after deduction of EMI should be at least 40% of the gross pay.
  • Self-employed businessmen and professionals can get approved loan amounts equal to their 20 months’ income. The loan amount will be calculated based on their repayment capacity and the average income that was earned in the past two years.
  1. Criteria for Employment type: The following individuals are eligible for a Indian Bank Car Loan-          
  • Non-salaried group: Established professionals & self-employed, businessmen  
  • Salaried group: Regular employee with minimum 6 months completed service
  • Farmers and agriculturists.
  • Business concerns (Corporates & Non Corporates)
  • NRIs

Steps to check eligibility for Indian Bank Car loan at Paisa Bazaar?


It is simple, easy & quick to use this eligibility calculator tool. By following simple & easy steps, anyone can directly know if or not he is eligible to avail Indian Bank car loans. Here is what you need to do -


Step 1: The first step to check your eligibility at PaisaBazaar.com, click on Indian Bank Car Loan eligibility calculator. By clicking on this link, you would be redirected to the page of the online eligibility calculator tool.


Step 2: You would be asked few basic questions, as in what type of car are looking to buy; the city you are currently living in, make or model of the car that you want to buy, time for buying the car, loan amount you want to borrow, tenure of car loan, employment status, etc.


Step 3: Once you enter all the essential details for calculating Indian Bank Car loan eligibility, you would automatically get to see the eligibility status.


Reasons to use Indian Bank Car Loan eligibility calculator at Paisa Bazaar


There are a lot of reasons to use Indian bank Car Loan, some of which are:
 

  1. You can save your crucial time: By using Paisa Bazaar’s Indian Bank Car Loan eligibility calculator, you can save your crucial time of personally making a visit at the Indian bank branch and waiting to take appointments with the bank representatives. With this tool, anyone can instantly check his eligibility while sitting at his place in just few minutes and can take decisions accordingly.
  2. It does not demand efforts: Indian Bank Car Loan eligibility calculator by Paisa Bazaar is automatic, and a person does not have to try and test his eligibility for every other car loan scheme. With this calculator, one gets to see all the suggestions for all the other alternative loan products that you can consider while availing car loan. 
  3. It makes it easy to compare: Comparison helps in availing good deals on car loans. You can easily make comparison for different car loans offered by Indian Bank and compare them from different car loan plans offered by other banks to find the most suited car loan plan. It is by doing comparison that you can find best car loans in India.

Applicable Interest Rates on Indian Bank Car Loan

Indian bank car loan interest rates are of floating type and are considered too competitive as compared to other car loan products provided by various leading Indian Banks. Due to floating nature, the Indian Bank car loan interest rates are subject to fluctuate with market conditions as well as change in the MCLR of the bank.
 

  • Current Indian Bank car loan Interest rates for new vehicles are 9.95% (floating)
  • Current Indian Bank car loan Interest rates for used vehicles: 11.30% (floating)

Processing fee for Indian Bank Car loan:
 

  • One time processing fee charged while applying for the Indian Bank car loan is 0.229% (not exceeding Rs.10191)

Documents required for applying for an Indian Bank car loan

A prospective Indian Bank car loan borrower needs to submit the following documents while applying for a Car loan. These documents for Indian Bank Car Loan that are required to be submitted are:
 

  • Filled-in application form with a passport size photo attached.
  • Identity Proof, which can be any of the following:
  • Voter’s ID
  • PAN Card
  • Driving License
  • Passport
  • Proof of Residence, which can be any of the following:
  • Electricity Bill
  • Telephone Bill
  • Passport
  • Property Tax Receipt
  • Voter’s ID
  • Proof of business address (for businessmen and industrialists)
  • Proof of Employment.
  • Salary Certificate
  • Proof of any other sources of income
  • Balance sheet for the previous 3 financial years (for self-employed businessmen and professionals)
  • Past 3 years’ income tax returns
  • Past 3 years’ wealth tax returns (if applicable)
  • Driving License
  • Quotation provided by the authorized dealership for the said vehicle

The Indian Bank car loan EMI

Car loan EMI, which is an abbreviation for equated monthly installment, is a crucial factor related to car loan, which must be carefully considered by the applicant. The EMI is the monthly payable amount which is agreed to be paid by a borrower, so he must precisely ensure that this EMI does not create an unnecessary financial burden on his life.


Note: The ratio of the rate of interest to the principal amount in the monthly car loan payment varies throughout the tenure of the Indian Bank car loan. The interest is a much larger component in the repayment amount at the beginning of the loan tenure, but keeps decreasing as time passes. This varying ratio affects the borrower in case if they wish to make a partial prepayment of the loan amount.


How to calculate EMI for Indian Bank Car loans?


To calculate EMI for Indian Bank car loans, a person needs to have information about:
 

  • Car loan interest rates
  • Total loan amount to be paid
  • Tenure for the car loan

Calculation Method 1: To calculate EMI for Indian bank car loan, you need to apply the following formula:
 

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


Where P refers to the Principal loan amount; R refers to the Car loan interest rates offered by Indian Bank; and N refers to the Loan tenure, in months (or, the number of installments applicable)


Using this formula and the Indian Bank Car loan details, you can compute the monthly EMI.


Calculation Method 2: If you do not want to exhaust your energy on the 1st method of calculating, then there is one much easier and quicker way to calculate Car Loan EMI. Paisa bazaar offers an online tool for car loan EMI Calculator which can be used before applying for the Indian Bank car loan. To use the Paisa Bazaar’s EMI Calculator for car loan online, you would need Indian Bank car loan details:
 

  • Details of exact amount of car loan to be borrowed,
  • Offered rate of interest on car loan by Indian Bank, and
  • Details of car loan tenure for which you intend to borrow the money.

USEFUL TIP: You can also use the Indian Bank Car Loan EMI Calculator to figure out the right loan amount and tenure for yourself. For that you would need to try different permutations and combinations of loan amount, rate of interest as well as loan tenure.
 

Here is how to use Car Loan EMI Calculator:
 

Step 1: Using the slider, fill the details about principal amount of the Indian Bank car loan that you wish to apply for.


Step 2: In the step 2, you need to fill the details about interest rate for the car loan that has been offered to you by the bank. To fill this, you can either use the slider or directly enter the figure in the box.


Step 3: This part is about the loan tenure. Using the slider or by directly mentioning the figure, you have to mention the total number of years (in months or in years) for which you would like to take the loan.


Step 4: As soon as you enter the details in the 3 required columns, you would get the results for monthly EMI to be paid in the right side of the calculator.


Another aspect of this EMI calculator is that you can simply change any or all the values in the three sections and view the changed EMI immediately.

What are some important things to remember while applying for car loan?

Before an applicant make up his mind for availing Indian Bank Car loan, there are certain factors he must consider, as he would be agreeing for a long term financial commitment. So before you apply for an Indian Bank Car loan, keep certain factors into consideration, to make sure that you have taken a well though decision. Some of those factors include:
 

  • Interest Rate applicable on Indian Bank car loan
  • Car loan EMI
  • Tenure for a car loan
  • Processing Fees charged by Indian Bank for car loan
  • Prepayment Charges on Indian Bank Car loan
  • Down Payment charges

Applying for the Indian Bank Car Loan at Paisa Bazaar


With its numerous online calculation tools, Paisabazaar.com has made the process of applying for new car loan or pre-used car loans simpler. Interested Car loan borrowers can find out exclusive car loan deals at PaisaBazaar.com. Further, for the comfort of the loan borrowers, PaisaBazaar.com has streamlined the process of applying for the Indian Bank plans for car Loan. Borrowers can easily check their worthiness for Indian Bank Car Loan, calculate EMI on Indian Bank car loan, search for the best car loan plans in India, compare car finance plans and even apply for Indian Bank Car Loans online only at Paisa Bazaar. Car loan borrowers can even enjoy the benefit of pre-approved car loans if they have all the required documents.

With PaisaBazaar’s online EMI calculator, the customers can easily manage their car loan repayments. Customers can make good use of the online EMI Calculator to check EMI on Indian Bank pre used car loan or Indian Bank new car loan. Also, the Indian Bank Car Loan EMI calculator by PaisaBazaar can be used to try different permutations & combinations of car loan interest rate or tenure for a car loan to find the scheme that is best suited for the borrower (depending upon personal & budget requirements).

Indian Bank Car Loan FAQs

Q: What is the maximum loan tenure that one can opt for in a car loan from Indian Bank?


Ans: The maximum loan tenure that is applicable for car loans from Indian Bank are:
 

  • For new vehicles – 7 years
  • For old vehicles – 5 years

Q: Which make and model of cars is financed by an Indian Bank car loan?


Ans: There is no limit on the make and model of the car that you wish to get financed from Indian Bank. All cars made and sold in India are eligible for an Indian Bank car loan.


Q: Is any collateral required for a car loan from Indian Bank?


Ans: For loans up to Rs. 10 Lakh, the applicants are not required to provide any security; only the hypothecation of the vehicle to the bank is required. But for loan amounts that exceed Rs. 10 lakh, collateral equivalent to the exceeding amount is required.


Q: Can used cars also be financed with an Indian Bank car loan?


Ans: Yes, used cars not older than 3 years can be financed under the Indian Bank car loan scheme. The maximum tenure period for the loan and rates of interest applicable may vary.


Q: Can I have a co-applicant for Indian Bank Car Loan? How will it improve the chances of getting my Indian Bank car loan approved?


Ans: To enhance your Indian Bank car loan eligibility amount, you may opt for a co-applicant. Your co-applicant can be your spouse, children, parents, or a friend. By adding a co-applicant in the Indian Bank car loan application, the chances of repaying loan gets high, and bank easily approves even more amount of loan.


Q: What is credit history? How can Indian Bank get to know my credit history?


Ans: Credit history refers to an individual’s record of past repayments for mortgages and credit card bills. Indian bank can easily get to know about any individual’s credit score via central bank of data available with the Credit Bureau of India Limited (CIBIL).This CIBL score is a crucial score, which every financial institution considers while approving for any loan to identify an individual’s repayment track record for any dues.


Q: How can I compare bank car loan quotes from multiple banks?


Ans: To ensure that you are taking the best car loan made available by different financial institutions, you can easily compare bank car loans online at PaisaBazaar.com. With PaisaBazaar’s car loan comparison tool, one can easily get to know about the best suited loan within minutes.


Q: What is prepayment charge? Why do I have to look at pre-payment charges of Indian bank car loan while comparing it with other bank car loans deal?


Ans: Any lender or financial institution pre decides loan amount repayment period at the time of availing loan. For example, if you have agreed upon 7 years for loan tenure of your car loan offered by Indian bank, and later after 5 years, you want to repay it all and save the interest amount then that situation is prepayment of loan. Several banks charge loan prepayment penalty charges from individuals, the percentage of which varies upon different conditions. While comparing your Indian Bank car loan online, do ensure that interest saved by pre-paying exceeds the prepayment fee paid.


Q: How are fixed interest rates different from floating interest rates?


Ans: A fixed rate of interest is a constant interest which remains same throughout the loan tenure, irrespective of the market conditions. On the other hand, floating interest rate fluctuates depending upon market condition and can occasionally decrease or increase.


Q: Does PaisaBazaar charge any extra amount if I apply for Indian Bank Car Loan online from its website?


Ans: No, PaisaBazaar.com does not only offers  the ease of using and applying for car loans, but also provides free of cost services. Any individual or intended loan taker need not to pay any extra amount while availing car loan or any other loan.

Q: To apply for an Indian Bank Car loan at PaisaBazaar, I will have to provide my personal information. How secure and safe is it?


Ans: PaisaBazaar.com has a secured network and we assure you of your privacy. No information is shared with any third party other than the financial institution that you decide to apply to. We have adopted sound technology practices to ensure completely secure environment for all your data.


Q: For what all reasons can Indian bank reject my car loan application?


Ans: To get an Indian bank car loan approved, the first and foremost requirement is to meet the basic eligibility criteria for Indian Bank Car Loan which are pre-defined by the bank. Also, you should have a decent credit score and no payment defaults under your name. If you have a low credit score, multiple loans and default payments then your loan application might be turned down.


Q: From where can I get my car loan application form for Indian Bank?


Ans. You can download Indian Bank Car Loan application form from the official website of Indian Bank. Alternatively, you can also visit nearest Indian bank branch to initiate the process of the Indian Bank car loan.


Q: To apply for Indian Bank car loan, is it necessary to have an Indian bank account?


Ans. To apply for car loan provided by Indian Bank, it is not crucial to have an Indian Bank account.


Q: What is the process to apply for an Indian bank car loan?


Ans: To apply for the Indian Bank car loan, an intended borrower has to follow a three stage process that comprises of:
 

  • Car Loan Application – The borrower has to apply for car loan and submit loan application form along with all the required documents.
  • Car Loan Processing – Indian Bank approves the loan and decides the loan quantum
  • Car Loan Disbursals – Once the Indian Bank approves loan amount, the representatives disburse car loans and credit it to the account of car dealer (in case of new car) and customer (in case of used car).

Q: Can I apply for a car loan online?


Ans: You can easily apply for a car loan online at PaisaBazaar as well as the official website of Indian Bank.