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Karur Vysya Bank Car Loan Eligibility

As the vehicles rates are climbing new heights, it is becoming a challenge for individuals to own a car. Car purchase requires sufficient funds and not everyone is able to afford such funds. This is when the need for car loans comes in. Karur Vysya Bank car Loan is a mode of finance for people who wish to buy a vehicle for themselves. This loan offers to flexibility pay for the car loan in instalments and as per the financial capability of the borrower. It also offers the flexibility to vehicle of any brand and make.

Karur Vysya Bank Car Loan Eligibility Criteria

Karur Vysya Bank Car Loan Eligibility

To apply for a car loan at Karur Vysya Bank, an applicant has to meet a certain set of criteria set by the bank. Meeting these criteria is very important to be further eligible to avail the loan.

Salaried Individuals

  • Minimum age should be 21 years
  • Maximum age can be 70 years as at the loan maturity
  • Minimum net annual salary should be Rs. 2.4 Lakhs
  • Income eligibility is verified with the latest salary slips as well as Form 16
  • Minimum 1 year of continued employment

Self-Employed Individuals

  • Minimum age should be 18 years
  • Maximum age can be 75 years as at loan maturity
  • Minimum net annual income from business should be Rs. 1.8 Lakhs and for select car models the minimum expected is Rs. 2 Lakhs
  • Income eligibility is verified based on latest income tax returns
  • Minimum 3 years of association with the same business

Self-Employed Non-Individuals

  • Net annual business income should be a minimum of Rs. 1.8 Lakhs and for select car models, minimum requirement is Rs. 2 Lakhs
  • Income eligibility is verified based on previous 2 years of income tax returns as well as audited financials of previous 2 years attached with computation of income
  • Minimum 3 years of association with the same business has to be proven

Customers with Salary Accounts at Karur Vysya Bank

  • Minimum age of 21 years and maximum of 70 years is acceptable
  • Net annual salary should be a minimum of Rs. 2.4 Lakhs
  • Income eligibility is verified based on latest salary slips and Form 16
  • Minimum 1 year of continued employment
  • Permanent employees of state or central Government are eligible
  • Employees of public sector undertakings
  • Employees of reputed schools or colleges

Documentation Requirements for Karur Vysya Bank Car Loan

Listed below are the documents that need to be furnished during the loan application process for Karur Vysya Bank car loan.

  • Application form duly filled-in
  • Age proof
  • ID proof
  • Photograph
  • Income proof
  • Residence proof
  • Bank statement
  • Pro-forma Invoice or Rate List
  • Signature verification proof

Details of Karur Vysya Bank Car Loan

CategoryNew Car LoanUsed Car Loan
Interest Rate9.65-11.65 %12.75-16.75 %
MarginMaximum 10% of the cost of new carMaximum 40% of the cost of new car – car cannot be more than 5 years old
Loan Tenure7 years5 years
Processing Fees

Loan < Rs. 10 Lakhs – Rs. 3,000

Loan > Rs. 10 Lakhs – Rs. 7,500

Loan < Rs. 10 Lakhs – Rs. 3,000

Loan > Rs. 10 Lakhs – Rs. 7,500

Pre-Payment FeesNilNil

Factors Impacting Eligibility of Karur Vysya Bank Car Loan

There are a number of aspects that can affect Karur Vysya Bank car loan interest rate. These can also have an impact on the loan amount sanctioned by the bank to the prospective borrower, and also the EMI to be paid. Some of these factors are listed below.

Collateral Security –  Collateral security is an optional condition laid down by Karur Vysya bank. If the applicant opts to pledge collateral such as Land, Building, Bank Deposits, KVP/NSC/LIC Policies, etc., then there are higher chances of getting a car loan at reasonable interest rates. This is provided the other key factors are also met.

Guarantee –  A reliable guarantor brought in by the applicant can help in fetching favourable car loan terms and could also assist in attracting a lower rate of interest. The applicant’s spouse or any other known individual can stand as the guarantor for the loan. This is possible if the guarantor meets the eligibility criteria set by the bank.

Loan Tenure– If the car loan tenure chosen by the applicant is longer, it indicates higher risk of repayment related defaults to the bank. To mitigate this risk the bank could increase the interest rate applied on the loan. By opting for a shorter loan tenure, the bank is generally assured of faster repayment and in turn reduces interest rate.

Income –  Applicants who have higher income are considered to be more credit-worthy since they tend to have a higher repayment capability. This is, provided their debt-to-income ratio is balanced out. In such cases, it is easy for the applicant to negotiate interest rate terms with the bank.

Loan Margin – Car loan interest rates are also dependent on the extent of down payment made by the applicant at the time of loan application. Higher the down payment, higher will be the loan margin and higher the chances of getting favourable car loan terms.

Credit Score – Credit score reflects an individual’s credit history. Credit score is one of the first checks performed by banks before approving a car loan. Banks generally source this information from the Credit Information Report. Higher Credit score will indicate the bank to offer lower interest rates and vice versa. It always helps that the applicant checks his or her Credit score and clears off all dues before applying for a fresh car loan.

Existing Customers – Existing customers of Karur Vysya Bank can avail car loan much more quickly and at substantially lower interest rates. The bank offers numerous car loan benefits to loyal customers who have deposit accounts with the bank.

FAQs: Karur Vysya Bank Car Loan Eligibility

(1) Can I avail car loan from Karur Vysya for running my car hiring business?

No. Karur Vysya does not extend car loan facility for car hiring business purposes. The car loan is offered only to those applicants who wish to use the vehicle for personal use or a business requirement.

(2) How can I apply for this loan online?

You can visit Karur Vysya Bank’s official website to apply for a car loan. The website has application form and even customer care details if you wish to be contacted for completing the process.

(3) Is it possible to apply for car loan offline?

Yes. You can apply for Karur Vysya car loan offline by visiting the nearest bank branch. You will need to carry all the requisite documents for an official to help you in completing the formalities.

(4) Can I sell the vehicle before closing the entire car loan?

You will need to seek a No Objection Certificate from Karur Vysya Bank to sell the vehicle. This certificate is provided only after foreclosure of loan or in case you have completely paid off the loan.

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