Interested in financial products
CreditMantri
Processing

Introduction

A few years back, owning a car was seen as a matter of prestige in our society. But over the decades the needs of the people in the country have changed a lot and having a car today is considered to be not just a luxury but even a necessity in many cases. People today can easily buy cars through many financing options available in the market. Car financing options are available at reasonable interest rates and also have flexible and comfortable repayment tenure.

IDBI Bank is among the many banks in the market that provide car loans to its retail and corporate customers. Given below are the details of the car loans offered by IDBI bank to its retail customers.

Highlights of the Car Loans at IDBI Bank

Idbi Bank Car Loan Interest Rates

IDBI Bank provides vehicle loans or Auto Loans for purchase of new four wheelers and two wheelers. The highlights of the car loans of the bank are tabled below.

Particulars

Details

Maximum Amount of Loan

No upper limit (Decided based on the repayment capacity of the borrower)

Rate of Interest

For Individual borrowers

  • Starts from 7.50%

For Non-Individual Borrowers

  • Starts from 8.10%

Tenure

Maximum 84 months (7 years)

Foreclosure charges

  • NIL for Individual Borrowers
  • 1% of the outstanding amount (excluding taxes) for Non-Individual Borrowers before completion of 6 months from disbursal and Nil after 6 months completion of such disbursal.

Part-payment Charges

  • NIL for Individual Borrowers
  • 1% of the outstanding amount (excluding taxes) for Non-Individual Borrowers before completion of 6 months from disbursal and Nil after 6 months completion of such disbursal.

Factors that affect the interest rates on auto loans at IDBI Bank

The interest rates on any loan product are affected due to many external and internal factors. Such factors increase or reduce the interest rate that is levied on the auto loans offered by the Bank.

Some of such factors are discussed below.

  • IDBI Bank charges floating rate of interest on Auto loans. These rates are generally lower than the fixed rate of interest and hence make it an attractive option
  • The credit score of the applicant is reviewed to determine the rate of interest on auto loan. A person with a higher credit score will have a reduced rate of interest as compared to the other way round. Also non- individual borrowers are charged a flat rate of 8.10% by IDBI Bank.
  • A good repayment capacity will also benefit the borrower with a lower or reduced rate of interest as it will ensure the Bank that such borrower is of lower risk to the Bank.
  • A reduced or a shorter tenure will also reduce the rate of interest as the risk of non-repayment of loan is reduced as compared to a longer tenure.
  • Inflation is also crucial in determining the rate of interest on any loan product. A higher inflation rate will result in a higher rate of interest. Floating rates are directly affected by the change in inflation.

Closer Look at the Features of Car Loan from IDBI Bank

The above highlights of the car loans of IDBI Bank can be discussed in depth hereunder.

Quantum of Loan to be provided

IDBI Bank aims to provide a maximum amount of loan to the borrowers for the purpose of purchasing a vehicle for personal use. The bank does not put any upper limit on the amount of loan to be sanctioned. The quantum of loan to be disbursed will depend on the repayment capacity of the applicant.

Rate of Interest

The rate of interest on auto loans of IDBI Bank is based on the floating rates of interest. These rates are dependent on the credit score of the applicant as well as on the type of the borrower. The current applicable interest rates for the auto loans of IDBI Bank are tabled below.

Credit Score of Applicant

Rate of Interest

801 and above

7.50%

776 to 800

7.60%

741 to 775

7.70%

700 to 740

8.10%

Below 700

N A

Non individual borrower

8.10%

Tenure

The tenure or the repayment period of the loans provided by the Bank is a maximum period of 7 years i.e. 84 months. Borrowers repay the auto loan taken from the Bank in equal monthly installments which are made up of the interest component as well as the principal amount.

Foreclosure Charges

The bank permits the borrowers to repay the loan in full before the completion of the tenure. This is known as foreclosure of the loan. IDBI bank levies a nominal charge on such foreclosure in case the borrower is a non-individual and the foreclosure is before completion of 6 months from the date of sanction of loan. The applicable charge in such cases is 1% of the outstanding amount (excluding applicable taxes). If such foreclosure is done after the completion of 6 months, there will be no additional charge levied on the non-individual borrower. In case of individual borrowers, there is no such condition of time limit. The Bank does not levy any charge on foreclosure of loans taken by individual borrowers irrespective of the period from the issue of loan.

Part Payment Charges

Like foreclosure, the bank also permits the borrowers to prepay the loan taken in parts higher than the EMIs. There are many conditions to be adhered to by the borrowers in respect of such part payment of loans and such part payment is also subject to a nominal charge in case of non-individual borrowers. Non-Individual Borrowers have to pay 1% of the outstanding loan amount as part payment charges and such charges are excluding the applicable taxes.

The conditions that have to be taken care of while making the part payment are,

  • Minimum payment that can be made is Rs. 25,000
  • Maximum number of payments that can be made during a year is 3
  • Maximum part payment allowed at any time is 10% of the outstanding amount.
  • Minimum interval between any part payment during a year is 90 days.

Processing Charges

IDBI bank levies a nominal charge on every loan processed. The minimum amount charged as processing fees by the bank is Rs. 1,500. The processing fees are collected by the bank at the time of sanction of loan.

Penalty Charges

IDBI Bank also charges a penalty on borrowers that have defaulted in the timely payment of the EMIs (Equated Monthly Installments). This penalty charge is levied at the rate of 2% per annum on the overdue amount and overdue period.

What is an EMI Calculator?

IDBI bank has an EMI calculator on its website that can be used by the potential borrowers to calculate the estimated EMI expense that is payable by such borrower each month. Borrowers can find the link to such EMI calculator below,

Home>>Personal>>Calculator>>Auto Loan EMI Calculator

The information required to calculate the estimated EMI are mentioned hereunder,

  • Loan Amount
  • Rate of Interest
  • Tenure/ Loan Term

After providing the above details, the applicant has to click on ‘calculate’ and they will get the EMI payable amount displayed on their screen. This feature can be used multiple times by clicking on ‘clear’ to get the best suited combination of loan term, interest rate and loan amount that is feasible for the potential borrower.

This feature will help the potential borrower to get a fair idea of the EMI to be paid by the borrower at various interest rates.

FAQS – IDBI Bank - Car Loan Interest Rates

1. What are the documents needed for IDBI Car Loans?

The documents needed for IDBI Car Loans are,

Age Proof

  • School Leaving Certificate
  • Passport
  • Driving License
  • Election ID Card
  • Birth Certificate
  • LIC Policy
  • PAN Card

Identity Proof

  • Passport
  • PAN Card
  • Election Id card
  • Driving License
  • Photo Credit Card
  • Employers ID Card

Address Proof

  • Passport
  • Driving license
  • Election Id card
  • Telephone Bill / Electricity Bill
  • Title deed of property / Rental Agreement
  • Employers letter
  • Sales Tax RC / ITR / Form 18

Income Proof

  • For Salaried Persons - Salary Slip, Form 16/ ITR, Bank statement showing salary credit
  • For Self-Employed Persons - Last 2 years computation of income / certified financials, Balance Sheet, P & L A/c, Bank statement

Bank Statement for Past 6 months

Recent Passport Size Photographs

2. What are the eligibility criteria for IDBI Auto Loans?

The auto loans of IDBI Bank can be applied by salaried persons or self-employed persons. The eligibility criteria for the same are tabled below.

Category

Salaried Persons

Self-Employed Persons

Minimum Age

18 years

18 years

Maximum Age (At loan Maturity)

70 years / retirement age, whichever is earlier

70 years 

Minimum annual Income

Rs. 2,40,000

Rs. 2,40,000

Additional Requirement

NA

Minimum 2 years in profession

3. How can a person apply for the auto loans of IDBI Bank?

A person can apply for the auto loans of IDBI Bank by visiting the nearest branch of the Bank or by contacting the Bank through its customer care service or phone banking service. The Bank representatives will contact the customer for further details.

4. When can a person avail the auto loans of IDBI Bank for purchasing high end bikes?

Yes. Auto loans of IDBI Bank can be availed for purchasing high end bikes costing over Rs. 1,20,000.

5. What is the maximum rate of interest levied on the auto loans of IDBI Bank?

The maximum rate of interest charged on auto loans of IDBI Bank is 8.10% per annum on high risk individual borrowers and Non-individual borrowers.

6. Are Auto loans of IDBI Bank based on floating rates or fixed rates?

IDBI Auto loans are based on floating rates of interest.

7. What is the minimum rate of interest levied on IDBI Auto Loans?

The minimum rate of interest on auto loans of IDBI Bank is 7.50% per annum.

×Thank you! Your comment will be reviewed and posted shortly.

CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.