Vijaya Bank Car Loan

About Vijaya Bank Car Loan

Vijaya Bank is a Nationalised bank in India with 1592 ATMs, 50 extension counters, and 1805 branches across India. It offers reasonable car loans with an affordable interest rate to people who wish to purchase their dream car. It would be best if you had a good CIBIL score to avail yourself of a car loan from Vijaya Bank.

Features and Benefits of Vijaya Bank Car Loan

The minimum loan amount for a car loan from Vijaya Bank is Rs. 50,000. The lowest car loan interest rate the Bank offers is 7.35% per year. The maximum loan amount you can avail of is 85% of the car's on-road value. The loan tenure can extend from one to seven years. The age criteria to be eligible for a car loan from Vijaya Bank is between 21 to 70 years old.

Factors Affecting Vijaya Bank Car Loan Interest Rates

Here are a few factors that might affect the car loan interest rates from Vijaya Bank:

Credit Score is among the most critical factors Vijaya Bank looks at while determining your car loan interest rate. A high credit score will mean that the interest rate will be lower.

Another factor is income level. A higher income means that you will be able to repay the car loan. It will lead to a lower interest rate. On the other hand, lower income will lead to a higher interest rate.

The down payment amount is another factor affecting your interest rate. A lower amount will attract lower interest rates, and vice versa.

How to Apply for Vijaya Bank Car Loan

1. You must visit the official website and fill out the form.

2. The relationship manager handling the query will contact you and carry you throughout the process.

3. There will be numerous offers, and you can choose the Vijaya Bank car loan option that suits you best.

4. You can also visit any Vijaya Bank branch and ask for the procedure and details for availing of a car loan.

5. The concerned executive will ensure you have all the details and walk you through the car loan process.

Eligibility Criteria for Applying for a Car Loan

Here are the eligibility criteria for applying for a car loan from Vijaya Bank:

A salaried individual must be between 21 and 70 years old with a Rs 20,000 net monthly income. The duration of their employment must be a year minimum, and the salary slip and Form 16 will determine their income eligibility.

Self-employed individuals must be between 21 and 70 years old with a minimum ITR of Rs. 4 lacs (Rs. 18 lacs for some car models). They must be employed for at least three years (self), and their income tax return will determine their income eligibility.

You can increase your eligibility chances by doing the following:

• Opting for a shorter tenure

• Having a low debt-to-income ratio

• Having a good credit score

• Applying for a lower loan amount

Documents required for applying for a Car Loan

Here are the documents you will require to apply for a Vijaya Bank Car Loan:

• Salaried individuals will require ID proof, address proof, date of birth proof, signature proof, income proof, bank statement proof, and employment continuity proof.

• Self-employed individuals will require ID proof, address proof, date of birth proof, signature proof, income proof, bank statement, employment continuity proof, and business proof.

• Partnerships will require ID proof, address proof, date of birth proof, signature proof, income proof, bank statement, employment continuity proof, and other additional documents like a PAN card, etc.

Pros and Cons of Taking Out a Car Loan

Here are a few pros and cons of taking out a car loan:

Pros

• Quick access to funds

• Simple application process

• Flexible loan tenure

• Lower interest rates for good-credit individuals

• You can pay monthly

• You can own your favourite car at the end of the loan term.

• Improved credit score

Cons

• You must pay monthly.

• Interest rates might seem high to some.

• A down payment is necessary.

• You must provide collateral.