The Lakshmi Vilas Bank was a private-sector bank in India founded in 1926. The bank caters to the needs of industries, trading businesses, and the agriculture sector. The Lakshmi Vilas Bank merged with Singapore's, The Development Bank of Singapore (DBS) in 2020.
The Lakshmi Vilas Bank, now under DBS, provides a personal vehicle loan with highly competitive interest rates, enabling you to purchase your preferred car without delay.
The Lakshmi Vilas Bank car loan is tailor-made to meet individual customer needs. Some of the key features and benefits are mentioned below:
Easy application norms.
Hassle-free service and speedy processing.
A new vehicle loan is offered with a margin of 15 per cent of the invoice value.
Used car loans are offered with a margin of 40 per cent of the vehicle's cost.
Convenient repayment tenure.
Currently, Laxmi Vilas Bank offers personal vehicle loans at an interest rate of up to 10.3 percent. However, the interest rate will vary occasionally and depend on market conditions.
Here are some of the factors which can affect Bank Car Loan interest rates:
Credit Score: A borrower's credit score is an important factor that will impact the interest rate for a car loan. The banks will view a higher credit score positively, resulting in a lower interest rate.
Loan Amount: The loan amount will also have an impact on determining the interest rate. A higher loan amount might attract a higher interest rate.
Loan Tenure: The duration of the car loan will impact the interest rates. The longer the tenure, the higher the interest, as it represents a greater risk for the bank.
Down Payment: The initial down payment made by the customer will impact the interest rate offered by the bank. In simpler words, the higher the down payment, the lower the loan amount, leading to a lower interest rate.
Employment and Income: The interest rates will vary per the borrower's income and employment status. High-income individuals and salaried employees may avail of a lower interest rate.
Economic Conditions: The overall market and economic conditions will impact the interest rate. Moreover, RBI's monetary policies and other macroeconomic factors will affect the interest rate.
Type and Age of the Vehicle: The bank can offer different interest rates for different types of cars based on factors like the vehicle's age, make, model, and resale value. The used car loan interest rate will also vary compared to a new car loan.
Interested customers can opt for a personal car loan from Lakshmi Vilas Bank online or offline. Refer to the following steps for online application:
Visit the DBS bank website.
If you are an existing Lakshmi Vilas Bank customer, you can use your credentials to link your account with the DBS account.
Click 'More' and select the 'Personal Vehicle Loan' option from the dropdown.
Fill in the details and click on submit.
As for customers who prefer an offline mode of application, you can visit the nearest branch and fill out the application form. The team will happily help you through the process and offer you the best interest rate for your car loan.
The eligibility criteria for a car loan are as follows:
Permanent employees of reputed organisations.
Professionals, self-employed persons, entrepreneurs, or agriculturists.
Applicants are to have a minimum age of 21 and a maximum of 65.
Minimum annual income for four-wheelers - Rs 1,20,000.
Minimum net monthly income for two-wheelers - Rs 5,000.
Net monthly income must be twice the monthly instalment fixed for the loan.
The income of a spouse or another family member may be included, subject to verification.
Here is a list of documents required for applying for a car loan:
Application form with signature and attached photo.
Age proof and photo identification.
Proof of residence.
Bank statement for the past six months.
Required documents for employed applicants:
Salary slips for the past three months.
Form 16 or Income Tax Returns.
Required documents for self-employed applicants:
Income Tax Returns for the past three years, including income computation.
A CA audited and certified the balance sheet and profit and loss account for the past three years.
Taking a car loan has its own set of advantages and disadvantages. Read below to learn more -
Advantages:
Easy and hassle-free financing option.
You can pay for your favourite car in instalments.
Low down payment and maximum financing options.
Disadvantages:
Failing timely repayment can impact the credit score.
The longer the tenure, the higher the repayment amount will be.
The borrower will have to revisit the RTO to cancel Hypothecation post-repayment of the loan.
This loan can be used to purchase a new or used vehicle. You can borrow and repay a specific amount over a set period, along with the pre-determined interest amount.
Yes, you can get a car loan with bad credit, but you must pay a higher interest rate and a more significant downpayment.
Yes, you can pay off your car loan early. However, some banks may charge a prepayment penalty.
The bank will report the untimely payments to Cibil, affecting your credit score. Failure to meet EMI payments can also lead to the vehicle being repossessed by the lender.
Yes, you can refinance the car loan to get a lower interest rate or better terms. However, you must meet the lenders terms to do so.
The car loan tenure will range from two to seven years. The borrowers can opt for tenure based on the EMI amount.
The borrower needs a good credit score and income proof.
The interest rate will vary based on the applicant�s credit score, stable income, and other factors. The higher the credit score, the lower will be the interest rate.
Yes, the income of a spouse or another family member may be included, subject to verification.
Yes, some banks offer up to 100 per cent financing on the car of your dreams. However, the interest rate may be on the higher side.