Vijaya Bank is a public sector bank established in 1931.
Along with all the different financial helps that the bank offers, the bank is making it one of its priorities to help people get loans for their dream cars, especially at a considerably low-interest rate for everyone.
No matter if you're a salaried employee or a businessman, there's a financial solution for everyone at Vijaya Bank. Affordable interest rates and seamless documentation can help you achieve your goals faster and pay back well in time.
With the bank, you may get up to 85% of the on-road price of the car, along with 70% of the valuation amount (in the case of second-hand models). Here's everything you need to know about the car loan and how you can apply for the same.
Since Vijaya Bank is a nationalised private sector bank in India, it offers reasonable interest rates to its customers. You can easily avail the advantages that come with the Vijaya Bank car loan.
One of the top characteristics and advantages of car loans is that they are affordable and offer flexible and seamless paperless documentation along with a wide range of interest rates.
Seamless documentation: Vijaya Bank offers a seamless documentation experience, making it super easy for you to apply and get to the disbursal of the loan amount. You don't need to worry about a long list of documents.
Transparency: Unlike other loan procedures, there are no hidden charges with the Vijaya Car loan scheme.
The bank officials will discuss all the additional charges with you at the time of application, which are anyway always written in the loan agreement.
A low down payment: The third characteristic of the Vijaya Bank Car loan is that it offers a low downpayment of only 15% of the cost of the vehicle and 30% of the cost of a used vehicle.
Vijaya Car loan schemes offer attractive and low-interest rates to borrowers, especially if they have a great profile. Here are some of the characteristics of the loan:
Interest rate: 7.35% per annum for a new car loan, about 10.05% pa. for a used car loan.
Processing fee: 0.40% of the principal amount, up to 0.55% of the loan amount.
Issuance of Duplicate repayment schedule charges: INR 500.
Foreclosure charges: No foreclosure charges for a new car loan or a used car loan.
Penal interest: 2% per month for both new car loans and used car loans.
Cheque/instrument swap charges: INR 500 per instance for both new car loans and used car loans.
Documentation charge: INR 500 per instance for a new car loan and a used car loan.
Registration certification collection charge: INR 200 per instance for a new car loan and a used car loan.
Identity proof (driving license, Aadhaar card, passport, PAN card, or voter ID)
Address Proof (Driving license, Aadhaar card, passport, PAN or voter ID)
Date of Birth (Passport, birth certificate, or PAN card)
Signature proof (Bankers verification, PAN or passport)
Income proof (Form 16/ salary slips)
Bank statement (Last three months)
Employment continuity proof: Work experience certificates and letter of relieving
Based on the current rate and factors, the general base rate of interest offered by the Vijaya Bank on car loans for a tenure of up to 84 months is 9.65%. However, the floating rate may exceed up to 10.05% for the tenure and rates at the time. Moreover, you need to maintain a CIBIL score of 750 or higher.
Vijay Bank Vehicle loan helps you to have a seamless experience while buying your new car. In general, Vijaya Bank offers varied car loan interest rates based on several factors that play a background role behind the same.
Income: Your income plays a huge role in the determination of the interest rate of your car loan. You may use the EMI calculator to understand the rate of interest that you may have based on your income and EMI amount.
Loan amount: The loan amount you're asking for also plays a massive role in the interest rate.
Repayment tenure: Always opt for a shorter tenure to get the lowest interest rate.
Credit score: You must maintain a good credit score to ensure the bank offers you a low-interest rate.
Relationship with the bank: Your financial relationship with the bank also determines the rate of interest on your car loan.
Almost anyone can apply for a car loan at Vijaya Bank. However, we have listed the specific eligibility criteria for the car loan at the bank:
Salaried Individual: A monthly income of at least 20,000 INR, work experience of a year, and age between 21-70 years.
Self-Employed Individual: Minimum ITR of at least 4 lakhs INR up to 18 lakhs for some car modes. The duration of your business needs to be at least three years.\
Self-individual non-individual: The only difference is that the applicant needs to present IT returns and audited financials of 2 years.
One of the easiest ways to apply for a Vijaya Bank Car Loan is by going online to their website. The turnaround time is quite fast for car loans.
Download the application form.
Fill in the required details and submit the form online.
You can track the application with the reference number.
In the case of applying offline:
Visit the nearest branch of Vijaya Bank around you.
Get in touch with the bank representative and ask him for the loan application forms.
Submit the filled application form, supporting documents, and application fee to the individual.
Track your application thereafter with the reference number.
Enhancing your financial case before opting for a car loan is essential to have the best interest rates with Vijaya Bank. And we are here to help you achieve that with the least possible effort. Here's how:
Negotiate the price of the car: One of the most important and underrated ways to negotiate for the best car loan interest rate is by negotiating the car's price.
Most car dealers try to earn profit margins while selling a particular car. However, the cost of the vehicle can be as much as possible.
Keep your credit score in check: You need to maintain a credit score of over 750 to be able to apply for a loan. Regularly checking your credit score can let you take corrective measures to enhance it if your score is low.
It also enhances your confidence to approach the bank and get a low-interest rate for a car loan.
Choose a shorter tenure: If you want to boost your eligibility, you need to opt for a shorter repayment tenure, thus, saving on your interest amounts.
Maintain a low debt-to-income ratio: Before the bank lends any money to you, they will check how much percentage of your earnings goes into paying your debts. A low debt-to-income ratio will be an indication of your high repayment capacity.
Vijaya Bank offers about 85% of the invoice value of the car, provided all the documentation and requirements are completed by the applicant.
Vijaya Bank vehicle loan statements are available on a periodic basis with different interest rates, balance loan amounts, and payments made on a regular basis.
You can apply for a car loan with Vijaya Bank online on their website and offline by visiting the closes branch of the bank.
Vijaya Bank charges a floating interest rate on the car loan, which depends on various factors, including the income of the individual, his/her age, credit score, and much more.
The maximum loan tenure of the Vijaya Bank car loan is about 84 months, but you can choose the term based on your application.
You can settle your bank car loan in time by following these steps. You need to calculate the total repayment amount along with the penalty charges for foreclosure.
Next, you need to gather all the proper documents required for advance payment of the loan amount and pay the amount to the bank by visiting the nearby branch.
Based on your credit score and individual report, the individual takes a call on the loan amount. Banks access the income and financial condition of an individual to cater to their interest rates.
Paying off your car loan early results in individuals paying reduced interest rates. Hence, they have to impose a prepayment penalty.