IndusInd Bank is a leading private sector bank offering various financial products and services. One of their popular offerings is car loans, designed to help customers purchase their dream vehicle easily.
IndusInd Bank offers car loans at competitive interest rates with flexible repayment options, making it an ideal choice for those seeking a hassle-free car-buying experience.
IndusInd Car Loans presents various options, making it appealing for individuals seeking to purchase new and used vehicles. Some of the major features of the loan policy of IndusInd Car Loans are:
Low-interest rates: The loan policy of IndusInd Car Loans offers competitive interest rates, making it an affordable option for borrowers.
Minimal documentation: The loan application process is simple and easy, with minimal documentation requirements.
Quick disbursal: The loan disbursal process is fast, ensuring borrowers can receive their funds quickly and without delay.
Flexible repayment options: Borrowers can choose from various repayment options, including flexible repayment schedules of up to 60 months.
No prepayment charges: No charge on prepayment of fees, a cost-effective option for borrowers who wish to pay off their loans ahead of schedule.
Low processing fees: IndusInd Car Loans charges low processing fees, making it a cost-effective option for borrowers.
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.
Employment stability: The length and stability of your employment history can impact interest rates, as lenders prefer borrowers with steady employment.
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 time you have to repay the loan, and longer terms may result in higher interest rates.
Age of the vehicle: Newer cars have higher resale values, and lenders view them as less risky.
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.
To apply for a car loan from Indian Bank, follow these simple steps:
Determine your eligibility: The eligibility criteria for Car Loans for personal use are below. The applicant must (for salaried individuals):
be above 21 years and below 60 years of age.
have a minimum income of 2,50,000 per annum.
have lived in the city where the car is being purchased for a duration of at least three years.
have lived in the provided address for a minimum period of 1 year.
has been employed with his current employer for at least one year.
The applicant must (for self-employed individuals) -
be aged below 65 years.
have a credit score of 600 or above - no caution or negative profile.
have a minimum income of 2 lakhs per annum.
have been in business for a minimum of 3 years.
Gather required documents: Below are the documents required for salaries and self-employed individuals respectively:
Borrower's identity - Passport-size photo
Proof of identity and residence - Drivers license/ Voters ID/ Passport/ Aadhaar card/ PAN card
Proof of Income - Salary slips of 3 months immediately prior to the date of application/ Latest 2 yrs. IT returns
Once you have a clear budget, choose the car you want to purchase.
Check the loan amount: The maximum loan amount provided by IndusInd Bank is 90% of the car's on-road price.
Apply online or visit the IndusInd Bank website and apply for a car loan.
After reviewing the application and the documents, the bank will approve the loan application within 2-3 working days.
After approval, visit the nearest IndusInd Bank branch with the required documents and sign the loan agreement.
Once the loan agreement is signed, the bank will disburse the loan amount directly to the dealer or seller of the car.
Here are the advantages and disadvantages of taking out an Indian Bank car loan:
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:
Car loans often come with high-interest rates.
Repossession: The lender can repossess your car on the failure of repayment, leaving you without a mode of transportation.
Depreciation: Cars depreciate in value quickly, and you may find that you owe more on your loan than the car is worth.
No, providing collateral or security is not necessary to obtain the loan.
No, an IndusInd Bank account is not required for a car loan.
Yes, IndusInd Bank offers alternative schemes.
It is possible to obtain a loan using an existing car as collateral. However, the car must be hypothecated to IndusInd Bank after the loan sanction process and before the disbursement of the loan amount.
Post-dated cheques or via ECS.
New Car Loan: 7.5% p.a. to 14% p.a. & Used Car Loan: 10% to 20% p.a.
The loan application takes 48 hours to be processed.
An EMI stands for Equated Monthly Installment, a fixed amount of money that a borrower must repay to a lender at a specified interval.
To track the status of your IndusInd Bank car loan, you can call the customer care number at 1800-102-3333.
You can visit the Loan section of IndusInd Banks official page or the nearest branch.