Established in 1929, South Indian Bank is a renowned private-sector bank and one of the oldest in the country. With its headquarters based in Thrissur, Kerala, the bank boasts an extensive nationwide network that comprises 983 branches, four service branches, one extension counter, and 18 regional offices. Additionally, customers have access to over 1200 ATMs as well as 120 cash deposit machines across India.
South Indian Bank offers a range of financial products, which include car loans for new and used cars. The bank also offers reimbursement loans for cars that are not more than three months old from the date of purchase.
South Indian Bank car loan, known as Mobi Loan is quite attractive to borrowers, due to its relatively low-interest rates. The well-structured loan processing system, which provides all the details of fee and other charges enable you to calculate the total cost of the loan and repayment norms easily.
South Indian Bank extends car loans up to 95% of the on-road cost for new cars subject to a maximum of Rs.1 cr and 75% of the car value for used cars.
South Indian Banks car loan tenure depends on the category of your car purchased with the loan. The bank provides a maximum tenure of 7 years for a new car, which means 84 EMIs and the maximum tenure for used cars is 5 years, 60 EMIs
You should pay the prescribed margin money along with your car loan application. The margin money for a new car loan is between 10 to 20% of the on-road price of the car. The same is 25% of the cars on-road price for a used car loan.
The car purchased out of the car loan from the bank will be the primary security and South Indian Bank doesn't ask for any additional security.
South Indian Bank extends the flexibility to its customers to continue either with the current rate of interest, determined by base rate or migrate to the new MCLR-based interest rate.
South Indian Banks floating interest rate for new cars is between 8.80% to 9.25% and the floating interest rate for used cars is between 13.30% to 13.75%. The bank also provides car loans at a fixed rate of interest.
South Indian Bank charges 1% of car loan value subject to a maximum of Rs.10000/-, as a processing fee.
South Indian Bank doesn't charge for foreclosures of individual car loan borrowers, who availed car loans at floating interest rates. The foreclosure charges for loans sanctioned to non-individuals at a fixed rate of interest will be:
2% of the prepaid value in case of 12 months loan tenure
1% of prepaid value for loans of tenure above 1 year.
South Indian Bank levies penal charges of 2% for defaulted payments
The applicant should have a minimum bureau score of 740 and -1 to 5 without credit history for the applicant and co-applicant.
A proper understanding of diverse factors that influence the car loan interest rates of South Indian Bank will help you opt for an appropriate loan product that fits your requirement perfectly.
Following are some of the important factors that call for attention and consideration
Quantum of Loan
The borrowers requirement for a higher loan value will push up the rate of interest and it's vice-versa when it comes to lesser loan requirements.
Type of vehicle
The rate of interest for a new car will be lesser and it will be more for a used car loan.
Inflation
The floating interest rates are directly proportional to inflation and follow its trend all the way. The interest rate for loans sanctioned based on fixed interest rates will not change due to inflation.
Type of interest rate (Floating rate or Fixed rate)
Floating rates are generally cheaper as compared to fixed rates of interest which factor in many costs incurred by the bank for lending the funds.
Financial credentials of the applicant
The repaying capacity of the applicant or creditworthiness of the applicant is a vital factor that determines many aspects of a car loan. The bank will review the repaying capacity of the applicant thoroughly and the risk factors will decide the interest rate.
Repayment period
The repayment period or tenure of the loan is the period agreed upon by the borrower to repay the loan. If the loan amount is lower and tenure is also short, the risk is considered to be lower and hence the interest rate drops down.
Margin money
It reduces the risk of the lender, and the lesser risk brings down the rate of interest.
South Indian Bank car loan is a great option for anyone looking to purchase a car on loan, provided they meet the following eligibility criteria:
Salaried individuals, aged 18 to 60 years.
Self-Employed individuals and Businessmen.
Professionals who earn a net monthly income of Rs.60000/-.
NRIs can apply individually or jointly with his/her resident spouse.
Individuals who earn their income mainly from agricultural sources.
Pensioners/ Senior Citizens/ HNIs without pensions are also eligible.
The salaried individuals should have been in employment at least for 2 years, and a minimum of one year in the current employment. The business applicants should have been in the business at least for 3 years
South Indian Bank provides the option to apply for car loans both online and offline as well. You need to go to the nearest branch of the bank to get an application and the duly filled application along with the required documents can be submitted to the branch.
You can also download the application from the banks website and the duly filled application along with the required documents can be submitted online. The representative from the bank will contact you and extend all the assistance for the speedy processing of your application
Identity Proof
Address Proof- Aadhaar Card / Passport / Latest utility bills / Lease or Rental agreement / Title deed of the residence.
Income Proof
Salaried individuals ITR / Form 16 for the last 2 years / Salary Certificate / Salary slip.
Self employed persons ITR / AFS / for the last 2 years.
Bank statement for 12 months for all the above.
Vehicle documents
Proforma Invoice from the dealer
Passport-size photo of the applicant.
A better credit score will empower the car loan applicant to bargain for a competitive rate of interest. The documents that portray a good financial standing will also help to negotiate a better interest rate. In essence, a better credit history can do the job. You need to convince the bank that a car loan to you has no risk at all.
You can also go for a higher downpayment or a shorter loan tenure to get the desirable interest rate.
You can visit the nearest South Indian Bank branch or apply online through the website of the bank
Rs.100000/- is the minimum quantum of a car loan from the South Indian Bank
The minimum tenure of a car loan from SIB is 12 months
Salaried individuals. Self-employed, Partnership firms, Companies, Societies and Trusts can apply for the car loan.
Maximum car loan from SIB is Rs.1 cr for new cars and Rs.50 lacs for used cars
SIB charges 1% of the loan value subject to a maximum of Rs.10000/- as a processing fee.
The SIB margin money for a used car loan is typically 25% of the on-road cost of the vehicle.
The applicant for a loan should be 18 years old and not more than 60 years.