Corporation Bank Car Loan Interest Rate 2024

The Corporation Bank, a well-known public sector bank in India, is facilitating car ownership through its new car loan offering. With attractive interest rates, individuals can now conveniently finance new and used vehicles with car loans. Effective from April 1, 2020, Andhra Bank and Corporation Bank have been merged into Union Bank of India.

Characteristics of the Corporation Bank Car Loan Schemes

The Corporation Bank car loan has a lot to offer to consumers.

• Easy Loan Availability: Whether you are buying a car for personal use or commercial use, the car loan facility can be availed by anybody. It can be availed by individuals, companies, and professionals.

• Available for Every Car: The car loan is applicable for new cars as well as used cars, given they're not older than 3 years.

• Competitive Interest Rates: Corporation Bank car loan offers competitive rates in the market.

• Loan Eligibility: The Corporation Bank car loan is available for individuals ranging in age from 18 to 75.

• Credit Score: Individual borrowers with a CIBIL score of 700 and above are not required to provide any guarantee for the Corporation Bank car loan.

• Quick Loan Sanction: Get the Corporation Bank car loan sanctioned within 2 working days, once the documentation process is completed.

• Easy Terms and Conditions: The Corporation Bank car loan comes with simple and straightforward terms and conditions.

• Flexible Repayment: The Corporation Bank offers flexible repayment services for loan borrowers.

• Instant Approval: Users can avail instant in-principal approval for the loan.

Corporation Bank Car Loan Rate of Interest 2024

The interest rates for Corporation Bank car loans are highly affordable and consumer-friendly.

• The minimum ROI for the new 4-wheelers starts from 8.85% and the maximum ROI goes up to 10.50%.

• The minimum ROI for the used 4-wheelers ranges from 12.9% to 13% as per the latest information from the bank.

• Under the Union Green Miles Scheme, for a new 4-wheeler electric car, the interest rates start from 8.8% and can go up to 10.40%.

• Similarly, for old 4-wheeler electric cars not older than 3 years, the interest rates range from 12.2% to 12.3%.

• No prepayment penalty is applicable if the loan is adjusted from a verifiable source owned by the borrower.

Corporation Bank Car Loan Interest Rate based on CIC Score

The loan tenure applicable for the Corporation Bank car loan is a minimum of 1 year and a maximum lasts up to 7 years. The following are the latest Corporation Bank car loan interest rates based on the CIC score of the borrowers.

• For individuals with a CIC score of 750 and above, the premium rate is 0.45% with an effective rate of interest (ROI) of 8.85%.

• Customers with a CIC score ranging from 700 to 749 are offered a premium rate of 0.60% and an effective ROI of 9.90%.

• Those with a CIC score between 650 and 699 have a premium rate of 1.00% and an effective ROI of 10.30%.

• For individuals with a CIC score below 650, the premium rate is 1.20% with an effective ROI of 10.50%.

These varying interest rates allow Corporation Bank to provide competitive loan options based on the customer's creditworthiness.

Factors that Change the Corporation Bank Car Loan Interest

The loan rates are based on various factors that affect the fluctuations in the rates offered to different consumers.

• The CIBIL Score- The credit score of the borrower is very important in determining the interest rates for the loan. A high credit score generally means low interest rates meanwhile a low credit score makes for higher interest rates.

• Income- The income of the applicant should ideally fall in the eligibility criteria and applicants having a lower debt-to-income ratio are highly preferred by the bank.

• Loan tenure- The longer the tenure you choose for repaying the loan, the higher the rate of interest you'll have to pay. If a shorter repayment tenure is chosen, it is most likely that you'll have to pay a lower ROI.

• Loan Amount- The loan amount is another deciding factor in assessing the Corporation Bank car loan interest rate. The higher the loan amount, the higher the interest rate.

• Customer Relations: If you're an existing customer of the bank you might get a little advantage over the others. The existing customers are generally offered lower interest rates than others.

Who is Eligible for a Corporation Bank Car Loan?

The eligibility criteria for a Corporation Bank car loan are straightforward.

• Individuals aged 18 years to 75 years can avail of the Corporation Bank car loan.

• The applicants should be Resident Indians or Non-Residents Indians(NRIs).

• Individuals can apply for the loan individually or jointly with a family member.

• The minimum income required for being eligible for the loan is INR 10,000 per month.

• The companies and firms can also apply for a Corporation Bank car loan for using the vehicle for business purposes, either by the employees or by the directors of the company.

• A good credit score is necessary to avail of lower interest rates.

How to Apply for a Corporation Bank Car Loan?

You can apply for a Corporate bank car loan by following a few simple steps. You can either apply for the loan by visiting your nearest corporate bank branch or by visiting the official website of the bank and applying online.

• For applying online, visit the official website of the Corporation Bank and click on Apply for Vehicle Loan.

• The next step is to fill out the loan form with the adequate details required.

• After filling in all the personal, income and assets and loan details, submit the documents required.

• Upon successful submission of the application form the bank will contact you for verification and further processing.

• Upon verification, the loan will be sanctioned to the applicants in 2 working days.

How to Negotiate for the Best Car Loan Interest Rates with Corporation Bank?

For availing of the best interest rates on the Corporation Bank car loan, the applicants can follow the following tips.

• Research and Compare: Research interest rates offered by other lenders to determine a reasonable range. You can use this information as leverage during negotiations with Corporation Bank.

• Maintain a Good CIBIL Score: Ensure that you've repaid your exciting loans and debts timely to maintain a good CIBIL score. A high CIBIL score increases the chances of getting a Corporation Bank car loan with lower interest rates from the bank.

• Consider a Co-Applicant: You can add a family member as your co-applicant. This will enable you to present a combined income of you and your co-applicant leading to a comparatively lower interest rate on the loan.

• Opt for a Higher Down Payment: Pay a higher down payment to the bank while applying for the loan. A higher down payment can lead to a lower interest rate from the bank.

• Choose a Shorter Loan Tenure: Go for a shorter loan tenure. Longer loan tenures may result in higher interest rates due to inflation.

• Negotiate with the Bank: If you have good credit, you fit the eligibility criteria perfectly and the bank still refuses to sanction you the loan at an eligible lower interest rate, you must negotiate with the bank. The bank cannot deny providing you with an applicable lower interest rate for your car loan.

Remember to approach negotiations with confidence, gather supporting documentation, and be prepared to negotiate for the best car loan interest rates with Corporation Bank.