About the Bank
South Indian Bank (SIB) initiated operations on 29th January 1929, as a private Limited Company under the companies Act of 1913. SIB is one of the oldest banks of South India headquartered at Thrissur. The Bank was established to meet the financial needs of a group of resourceful men who started working together at Thrissur. SIB was incorporated with the aim to provide an efficient, safe and service oriented repository of savings and to save the businessmen from the money lenders who charge high interest rates, by providing finance at reasonable interest rates.
South Indian Bank (SIB) is a private sector bank of India having 839 branches, 4 service branches, 42 extension counters and 1293 ATMs. The Bank has the third largest branch network among the Indian Private Sector Banks.
South Indian Bank car loan
South Indian Bank car loans are one of the best car loans in India, as it offers car loans at reasonable interest rates. Car loans offered by South Indian Bank are better known as Mobi Loan and can be availed for purchase of new car, second hand car and takeover of existing vehicle loans. Car loan provided by South Indian Bank come with transparent processing and no hidden charges. Car loans from South Indian Bank can be availed for purchasing a new or old vehicle for personal, agricultural or commercial use.
Further, South Indian Bank car loan caters to people from all employment segments and is offered to salaried, self-employed, agriculturists, NRI and pensioners. South Indian Bank plans come with a number of benefits like simple documentation, quick approval and car loan disbursals and competitive car loan interest rates.
Features of South Indian Bank car loan
Buying a car can be a huge investment for most of us and paying for it out of the pocket is not easy. Car loan makes buying your dream car an easy task. You can avail finance for the car you want to buy and repay the borrowed money with the accrued interest through the tenure of the loan. South Indian Bank offers both new and used car loan. South Indian Bank takes minimum time to disburse car loans, so that you can drive your dream machine as soon as possible.
Apply for a South Indian Bank car loan if you want to:
- Buy a new vehicle by availing a new car loan
- Buy a second hand vehicle by availing a used car loan
- Takeover or Balance Transfer of usual car loan
Car finance plans by South Indian Bank can be availed for the following vehicle types:
- Commercial or taxi vehicle
- Vehicles for Agriculture and allied purposes
Every bank has set different eligibility criteria for availing a car loan. Eligibility for South Indian Bank car loan is generally based upon the employment and income of the loan applicant. Any applicant having a minimum income as set by the bank can avail a car loan. The lenders usually look for the repaying capacity of the individual and a good income works in favor of the loan applicant by building the confidence of the lender. The cost of the car or valuation of the car is also taken into account while deciding the amount of the loan to be sanctioned.
So whether, you are applying for a South Indian Bank used car loan or a South Indian Bank auto loan for a new car, you must meet the eligibility criteria of the Bank as per requirement.
The target group for South Indian Bank car loan is as follows:
- Salaried Class - Employees of MNCs, State/Central Govt, IT Companies etc.
- Business Class - Self Employed, Business people
- Next Generation - Professionals with net monthly income of Rs.60000/-
- NRI - NRI individual/jointly with NRI or resident spouse.
- Agriculturist - Persons whose main source of income is Agriculture.
- Senior Citizen/Pensioner - Pensioners/HNIs without pension
South Indian Bank offers loans to people from all employment sectors and even to Non-Resident Indians and Pensioners.
Check your Car Loan Eligibility
Before you apply for a South Indian Bank, it is very important to check the eligibility criteria you will need to satisfy to avail the loan. Checking the loan requirements for South Indian Bank car loan before applying for it will help you know the criteria which you need to satisfy for the loan. In case you do not fulfill the eligibility criteria of the bank then you can take proper measures to do the same or go in for another car loan scheme. Checking your eligibility prior to applying for the loan also saves your time as you already know the eligibility conditions, the requirements, documentation and the terms and conditions of the loan.
The eligibility criteria also vary according to the car loan scheme you choose. Therefore, the minimum income requirements can vary in case of South Indian Bank loan for a new car loan and a pre-owned car loan. Also, check the required documents for South Indian Bank car loan, so that you do not waste time arranging them when you have to deposit the car loan application.
South Indian Bank car loan eligibility depends on which employment class you belong to, like salaried, self-employed, agriculturist, NRI or pensioner. It is best to check whether you are eligible for a South Indian Bank car loan or not before you apply for the loan.
You can check your South Indian Bank car loan eligibility using the eligibility calculator available on bank websites or other financial websites. You can also check your eligibility online at PaisaBazaar. The car loan eligibility calculator at PaisaBazaar is easy-to-use and can be used anytime and anywhere. You just need to enter a few details regarding your loan and the eligibility calculator checks your eligibility instantly. The inputs required by the eligibility calculator include, the amount you wish to borrow, the car model u intend to purchase, your monthly income and so on. Once you fill in all the required fields, the eligibility calculator checks your eligibility for the car loan and also tabulates a list of offers for you according to your requirements and eligibility. You can also apply for a car loan online at PaisaBazaar and save your precious time. Applying for the South Indian Bank car loan online at PaisaBazaar.com is simple. Our representatives are there to provide you any assistance you require in your South Indian Bank car loan online application process.
Check Your Eligibility for a Car Loan using our simple eligibility calculator tool at Paisa Bazaar.
South Indian Bank car loan products on the offer:
- Mobi Loan for a new vehicle- This car loan can be availed for buying a new vehicle for personal, commercial or agricultural use.
- Mobi Loan for a second hand vehicle- This car loan can be availed for buying a second hand vehicle for personal, commercial or agricultural use.
- Loan for takeover of existing vehicle loans- Apply for this car loan if you want to go in for takeover of any existing vehicle loan.
Salient features of South Indian Bank car loan
- Type of vehicle:
The vehicle type for which you can apply for a South Indian Bank car loan includes:
- Private vehicles
- Commercial or Taxi vehicle
Vehicles for Agriculture and allied purposes
- Cost of Vehicle
The cost of the vehicle includes the Basic Cost + accessories + Duties +Taxes + Octroi + Onetime tax +Comprehensive insurance premium for the first year period
- Repayment period
The maximum repayment period for South Indian Bank car loan is 5 Years in normal case and 7 years with 100% collateral security.
Age of the borrower must not exceed 75 years at the time of maturity of the loan.
The margin for the loan ranges from 5% to 15% for new vehicles. In case of second hand vehicles, this margin stands at 25%.
- Loan amount
Minimum loan amount sanctioned for South Indian Bank car loan is Rs.2.00 lacs. However, there is no upper ceiling limit for the car loan.
Collateral required for South Indian Bank car loan can be any one of the following: Deposit/Property/Gold/LIC/NSC.
- Where there is no collateral security, Aggregate Net worth of the signatories to the loan documents (in land & building) should be twice the loan amount.
No guarantor is required when there is 100% collateral or South Indian Bank deposit.
- Inspection & Documentation Charges
South Indian Bank car loan has no charges for inspection & documentation for the car loan.
- Upfront charges or loan processing charges
Upfront charges or processing fee for South Indian Bank car loan is 0.25% of the loan amount or Rs.5000/-whichever is less. This charge is only a one time charge.
- Pre-payment penalty
There is no pre-payment penalty associated with South Indian Bank car loan. This means that if the borrower wishes to foreclose the loan by paying the outstanding amount at one go then he can do so without any pre-payment penalty charge.
- Interest Rate
South Indian Bank car loan interest rate is floating in type. The car loan interest rates vary according to the base rate. South Indian Bank car loan interest rates also vary as per the loan purpose and collateral.
South Indian Bank account holders can enjoy the benefit of pre-approved car loans, where they will have to go through minimal documentation process.
- Applicable Interest Rates
MCLR for 1 year is 9.85%
South Indian Bank car loan interest rates are as follows:
Up to Rs.5 Lakhs- 10.85%
Above Rs.5 Lakhs -9.90%
Every loan applicant needs to submit the following documents along with the duly filled and signed car loan application form of South Indian Bank car loan.
- Passport size photograph
- Photo identity proof and age proof
- Address proof
- Last 6 months bank statement
- Income proof-
- For salaried applicants:
- Latest 3 months’ Salary – slips
Form 16 or Income Tax Returns
- For self-employed applicants:
- ITR of last 3 years
- Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
Make sure that you submit all the above mentioned documents with the South Indian Bank car loan application form to ensure a hassle-free loan application and approval.
The following factors affect the applicable interest rates on car loans:
1. Credit history
Credit history is the CIBIL score which is maintained by Credit Information Bureau (India) Limited. CIBIL collects and maintains financial records of an individual with respect to loans and credit cards. The loan and credit card bill repayments decide the credit score of an individual. If an individual pays back his loans and credit card bills on time, then he will have a good credit score than a person who delays or defaults on repayments. Whichever loan you apply for, credit history is an important factor which decides the interest rate at which the loan will be offered to you. A good credit score can help you negotiate for a loan at a lower rate of interest as the lender will have confidence on you pertaining to loan repayments. But, people who have a bad credit score will be offered loan at a higher interest rate.
2. Income group
If the borrower belongs to higher income group, then it is more likely that he will pay his EMIs on time and will not default on the loan. Such borrowers are offered loan at better interest rates than those belonging to the lower income group. A low debt-to-income ratio can help you get a loan at lower interest rate.
3. Amount of down payment
If you make a high down payment, then the bank will have to lend an amount which is lower. Lower the loan amount, lower will be the risk on the Bank’s part. As a result, the bank may give you loan at a lower interest rate than otherwise.
4. Tenure of the loan
The maximum tenure of a car loan is generally up to 7 years. In general, banks charge higher interest rate for loans of shorter tenure and lower interest rates for longer tenure loans. It is a personal choice if you want to go for a shorter tenure or a longer one. To make a better decision, you can calculate the total interest that you pay for the total period of loan for each loan before you make the final choice.
5. Car model
When you borrow a car loan, the vehicle you purchase acts as collateral for the loan and will be pledged to the bank for the loan tenure. If you do not pay back the loan, the bank has the authority to seize your vehicle and sell it to make up for the loss. Therefore, the bank has to consider the car model as a factor for determining the interest rate as on sale every car may not fetch a good resale value. Reputed car models usually have a higher resale value in comparison to the not-so-famous car models.
6. Car age
The age of car is also decides the interest rate on your car loan. If you borrow a car loan to purchase a second hand car, the risk on the part of the bank increases and the bank offers you a loan at higher rate of interest. Whereas, in case of a new car banks levy lower interest rate as new cars can be sold easily fetching good resale value as compared to an old car.
EMI or Equated Monthly Installments is the money you pay each month so that you repay the loan within the loan tenure. In simple words, EMI is exactly how much your loan cost you every month. When you borrow a loan, the lender gives you a certain amount which has to be paid back with interest in a given period of time. EMIs are paid every month, therefore you must borrow loan amount which you can comfortable pay back. In case of a car loan, the amount you borrow for purchasing the car has to be paid back within the tenure for a car loan. The car for which the loan is taken is kept as a security for the sanctioned loan amount and if you default on payment of the loan then the lender can take away your car. The lender seizes the car and resells it to make up for the loss. Therefore, you must borrow a loan which you can pay back with ease without straining yourself financially.
EMI is an important part of the loan as it is the money you will have to pay. So it is always best to select the EMI that is according to your monthly income which you can pay back comfortably.
South Indian Bank car loan EMI
Before applying for the South Indian Bank car loan, it is advised that you check the loan EMI. The car loan EMI will be determined by the amount of loan you borrow, the duration for which it is taken and the applicable interest rate. South Indian Bank car loan depends upon the following three loan parameters:
- Car Loan Amount:
The amount borrowed to purchase a car, old or new, is the car loan amount. The minimum loan amount sanctioned in case of South Indian Bank car loan is Rs.2.00 lacs. However, there is no upper limit for the maximum amount sanctioned for the loan. The Car loan amount eligibility depends upon the income of the applicant and the cost of the car.
- Car Loan Tenure:
The time given for repaying the borrowed amount is the car loan tenure. The maximum repayment tenure for South Indian Bank car loan is 5 Years in normal case and 7 years with 100% collateral security. These repayment tenures are flexible and the borrower has the freedom to choice the tenure which best suits him.
- Car Loan Interest Rate:
Interest is levied on the lent amount at a certain rate, and this rate is the loan interest rate. South Indian Bank car loan interest rate is floating in type. The car loan interest rates change according to the fluctuations in MCLR rate. South Indian Bank car loan interest rates also vary as per the loan purpose and collateral.
You must check the South Indian Bank car loan details, before you apply for the loan. Calculate EMI for South Indian Bank car loans using South Indian Bank car loan EMI calculator, before you apply for it so that you know the amount that you will have to pay every month as EMI.
Car loan EMI calculator
Calculate your monthly car loan payments using the car loan EMI calculator. An EMI calculator is an online tool which can be used anytime and anywhere. It is easy-to-use and requires inputs from the borrower pertaining to the three loan parameters, i.e., the loan amount, loan tenure and interest rate. A car loan EMI calculator can be used to calculate the amount you will have to pay when you borrow a loan of a certain amount, tenure and interest rate.
With PaisaBazaar’s car loan EMI calculator, you can quickly calculate your car loan EMI before availing car loan. You can also experiment with the loan parameters to reach an optimum loan amount that you can afford. Just enter a few details into the car loan EMI calculator and get instant results.
By using our EMI (Equated Monthly Installment) calculator, you can calculate the amount that you have to pay every month in order to pay back your loan, depending upon the Interest Rate, principal Loan Amount, and Loan Term. Car loan EMI calculator of South Indian Bank can be found on the Bank’s web portal or you can calculate the loan EMI on PaisaBazaar.com.
PaisaBazaar’s car loan EMI calculator can be used to calculate the loan amount, then check your eligibility for the loan and also get the best deals on car loans as per your requirements and eligibility. You can also apply for a car loan from South Indian Bank at PaisaBazaar.com. Applying for the car loan has been made simple and easy at PaisaBazaar.com.
- SIB car loan can be taken for the purpose of buying a new car, second hand car and takeover of existing car loans
- Maximum repayment tenure for the loan is 5 Years (7 years with 100% Collateral Security)
- Margin of the car loan is 5% to 15% for new car and 25% for second hand car
- Minimum loan amount is Rs.2 lac
- There is no upper limit for the loan amount
- One time upfront charges of 0.25% of the loan amount or Rs.5000/-(whichever is less)
- No prepayment penalty
1. South Indian Bank car loan can be availed for which type of vehicles?
A. SIB Car Loan can be availed for private, commercial/taxi vehicle, vehicles for agriculture/allied purposes.
2. What are the minimum and maximum loan amounts South Indian Bank car loan?
A. Minimum loan amount for the loan is Rs.2 lac with no upper limit.
3. What is the upper age limit for availing a South Indian Bank car loan?
A. The age of the loan borrower should not exceed 75 years on completion of the loan tenure
4. How much processing fees I need to pay for the South Indian Bank car loan?
A. You need to pay 0.25% of the loan amount or Rs.5000/-(whichever is less) as a processing fee for SIB Car Loan.
5. Can I foreclose my South Indian Bank car loan?
A. Yes, foreclosure is allowed but you need not to pay any penalty charges for foreclosure.
6. How to apply for a South Indian Bank Car Loan?
A. You can apply for a South Indian Bank car loan online on the bank’s website or through PaisaBazaar. South Indian Bank car loan online application process at PaisaBazaar.com is fast and simple. You may also visit any South Indian Bank Branch near you to apply for a loan.
7. Does South Indian Bank finance the purchase of second hand vehicles?
A. Yes, the Bank offers loans for purchase of both new and second hand vehicles.
8. What is the collateral for availing a South Indian Bank Car Loan?
A. The collateral required to avail a Mobi loan, can be NSC, Deposit, Property, LIC or Gold.
9. Is it mandatory to have a guarantor for South Indian Bank car loan?
A. No. Guarantor is not required in case you pledge 100% collateral or South Indian Bank deposit. A guarantor is required in the case where no collateral or security is deposited to the bank.
10. How much will I have to pay as prepayment penalty in case I wish to prepay my South Indian Bank Car Loan?
A. South Indian Bank does not charge any prepayment penalty from those who wish to foreclose their car loan before loan maturity.
11. What are the options for paying the loan EMIs in case of South Indian Bank car loan
A. EMIs can be paid through Standing Instructions or at South Indian Bank branch. You can also avail the online money transfer facility.
12. Can NRIs apply for a South Indian Bank Mobi Loan?
A. Yes, NRIs are eligible to avail a South Indian Bank Mobi Loan. An NRI can either borrow a loan by himself or along with his resident spouse.
13. Who all are eligible for a South Indian Bank Car loan?
A. The following persons are eligible to apply for the loan:
- Salaried persons employed under MNCs
- Central or State Government and IT Companies
- Businessmen or self-employed
- Non Resident Indians
- Pensioners, senior citizens, High Net worth Individuals (HNIs) without pension, etc.