IDBI Bank is a leading public sector bank offering its customers a diverse set of financial products and services. The bank is known for its customer-centric approach and innovative solutions that cater to the needs of different segments of society.
IDBI Bank's car loans, called "Auto Loan," is one such product that has gained popularity among both individuals. Some of the salient features of IDBI Bank's car loans include attractive interest rates, flexible repayment options, and quick processing times.
Below are some of the key features which make IDBI bar loan stand out in the market:
Attractive Interest Rates: IDBI car loans come with very attractive interest rates, making them quite affordable for borrowers.
High Loan Amounts: Loan amount offered up to 90% of the car's ex-showroom price.
Flexible Repayment Tenure: A repayment tenure of up to 7 years makes it easier for borrowers to repay the loan at their own pace.
Speedy Loan Processing: Loans are sanctioned and disbursed within 48 hours of document verification.
Relationship Managers: The bank assigns relationship managers to help borrowers get the best loan deals and navigate the loan process.
Easy Loan Application: IDBI bank offers easy loan application processes, either online or in-person, making it convenient for borrowers to apply for a loan.
To make an informed decision, you must first know the determinants that may affect your Car Loan Interest Rate. Here's a list of a few of them:
Market Fluctuations: Interest rates are influenced by various market factors such as inflation, monetary policy, government policies, supply and demand, and economic growth.
Income Level: Your ability to repay the loan is determined by your income level, and lenders may offer lower interest rates to borrowers with higher incomes.
Individual's Credit Score: Lenders use your credit score to determine your creditworthiness, and borrowers with higher credit scores are more likely to receive lower interest rates.
Loan Tenure: The loan tenure is the length of time you have to repay the loan, and longer terms may result in higher interest rates.
Employment Stability: The length and stability of your employment history can impact interest rates, as lenders prefer borrowers with steady employment.
You can easily apply for the IDBI Bank car loan by following these steps:
Visit the official website of IDBI Bank and navigate to the car loan section.
Check your eligibility.
Fill up and submit the application form with personal details and upload the required documents.
On approval of the application, the bank may schedule a verification or appraisal visit to the borrower's residence or workplace.
After successful verification, the loan amount is disbursed to the borrower's account or directly to the car dealer.
You must meet these criteria to be eligible for a car loan:
For salaried individuals:
The applicant must be aged above 18 and at or below 70 (during loan maturity)
The applicant must have income proof, showing that the applicant has a minimum monthly income of 2,40,000 p
For self-employed individuals:
The applicant must be at least 18 years of age and a maximum age of 70 (during loan maturity).
The applicant must have income proof for the last 2 years. It should be backed by certified financials, balance sheets, bank statements, etc.
The applicant must have been in business for a minimum of 2 years.
Below is the list of documents required:
Age Proof: School Leaving Certificate/ Driving License/ Passport/ PAN Card/ LIC Policy
Address Proof: Passport/ Rental Agreement/ Employers letter / ITR / Sales Tax RC/ Form 18/ Driving license/ Election Id card/ Electricity Bill/ Title deed of the property
Identity Proof: PAN Card/ Passport/ Election Id card/ Employers ID Car/ Driving License
Income Proof: ITR for last 2 years; Bank Statement reflecting salary credits for 4 months/Latest 2 months' salary slips; Form 16
Bank Statement: Balance Sheet, Income Statement and ITR for last 2 years, Bank Statement for 6 months
Taking out a car loan can be a great way to finance a vehicle purchase, but it's important to understand both the benefits and drawbacks before making a decision.
Pros:
Longer repayment term: Longer repayment terms allow you to spread your borrowing costs over a few years.
Purchasing power: You can increase your purchasing power and buy a more expensive car than you can afford in cash.
Establishes credit: Making timely payments can help to build your credit score.
Ownership: On full repayment, the car is yours, and you have legal ownership.
Cons:
Repossession: The lender can repossess your car due to the failure of repayment.
Depreciation: Cars depreciate quickly, and you may find that you owe more on your loan than the car is worth.
The minimum interest rate for IDBI bank car loans is 7.50% per annum.
Minimum CIBIL score of 750 or above is considered creditworthy for auto loans.
If you are a salaried individual, then loans up to Rs.10 lakh are available. For pensioners, loans of up to Rs 50,000 are provided by IDBI Bank.
12 months and 60 months, respectively, are IDBI Bank personal loans maximum and minimum loan repayment terms.
Yes, you can get a car loan without an ITR. However, good credit is required for a car loan.
To track the status of your IDBI Bank car loan, you can call customer care on 1800 209 4324.
You can visit the Loan section of IDBI Banks official page or visit the nearest branch to see your car loan statement.
An EMI stands for Equated Monthly Instalment, which is a fixed amount of money that a borrower is required to repay to a lender at a specified interval.
No, it is not necessary to provide collateral or security to obtain the loan.
No, an IDBI Bank account is not necessary for a car loan.