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Lakshmi Vilas Bank has been in the service of the Indian public for close to a century now. They have various retail loan products for their customers. These loan products have always offered attractive terms in respect to the interest rate and the eligibility amount.
LVB’s Used Car loans are no different! The Used Car loan can be used to purchase pre-owned cars/jeeps/vans that are not more than 4 years old from the date of registration. Customers are also offered low interest rates and comfortable repayment tenures for these loans. Let us look at an overview of the LVB Used Car Loans.
About Lakshmi Vilas Bank Used Car Loan
Quick processing and faster approvals: Lakshmi Vilas Bank makes sure that your loan processing is quick and hassle-free. Customers have an option to apply for the loan online on the Lakshmi Vilas Bank website. Loan processing takes place with minimal documentation in a short time. Online applications allow for faster processing and the amount is disbursed at the earliest.
Pre-Approved offers for existing customers: Existing customers of Lakshmi Vilas Bank get pre-approved offers for car loans. The customer can utilize these pre-approvals for a faster loan process. You can log on to your Lakshmi Vilas Bank account to learn more about your eligibility and the loan application process.
The attractive loan amount and repayment tenures: Lakshmi Vilas Bank offers used car loans of up to 60% of the pre-owned car value. You can get up to Rs. 10 lakhs to buy a car, van or jeep. You can also get up to 3 years of repayment tenure to repay the loan.
Competitive interest rate: Lakshmi Vilas Bank offers one of the best interest rates (One-year MCLR + 3.10%) for its used car loans. Further, based on the eligibility criteria and the repayment capability of the customer, this interest rate can be bargained for.
The following people/individuals can apply for the loan
Applicants’ income criteria are important while processing a loan application. It tells the bank about your repayment capacity. Lakshmi Vilas Bank Used Car Loan has the following income eligibility criteria:
For salaried & self-employed individuals
a declaration by applicant giving details of land holding, crop cultivated and income therefrom, duly supported by a certificate from VAO and confirmed by Branch Head/AFO (Agri-Field Officer)
For other income like rent, dividend, interest & commission received, documentary evidence necessary
Credit Score - Credit bureaus record your credits & liabilities and maintain your credit score. A good credit score means a good creditor. Banks are much confident in lending to you as a good credit score translates in to good repayment history. A good credit score also allows you to bargain for better interest rate and higher loan amounts. A lower credit score results in higher interest rate and lower loan amount and in some cases, the loan could even get rejected. It is advised to be updated with your current credit score. If your credit score is low, you need to take a few steps and improve it first, before applying for the loan to increase your chances of getting good loan terms.
Income – As stated above, your income is a major criterion while processing your loan application. Lakshmi Vilas Bank has set a minimum income eligibility to avail of a car loan. If you feel your income may not be sufficient, you can also add a family member’s income to make up the eligibility criteria. Adding co-applicants to the application gives you a benefit of combined income. More income means better cash flow to pay the EMIs. The car need not be purchased on their name, but adding an earning member of the family increases the available income for repayment, increasing your eligibility for a higher loan amount and better interest rate.
Down Payment – It is favourable to make a higher down payment and go for a lower loan amount. Banks prefer higher down payment amounts as they would then have a lower loan amount to recover from you during the loan term. It will be easier on you also, since the EMIs would then be lower for a lower loan amount reducing the monthly cash outflow for you.
Loan Tenure – Though the bank offers repayment tenures of up to 36 months, the customer has the option to choose a lesser repayment tenure. Lesser tenure may mean higher EMIs, however, the total interest repaid would be lesser with a lower tenure. Based on your income and repayment capability, you can go for a lower tenure and repay the loan at the earliest.
Age – You must be 21 years old to become eligible for an IndusInd Bank Used Car loan. You also need to make sure that you pay off all of your loan by the time you are 65 or before you retire. Therefore, the more years of working years you have left, the greater the chances of obtaining the loan would be.
Car model and age – Used car loans are given on the value of the pre-owned car. Cars are depreciating assets, meaning, as years pass by, their value only decreases. In case you default on your loan, the bank has the right to seize the vehicle against loan outstanding. So, if your car is going to have higher depreciation, the loan amount will also be adjusted accordingly. Hence, choose a car model that will retain its value for a longer period. A used car that is in mint condition and is below 4 years old, gives the bank a better opportunity to recover a good amount in case of defaulting on the loan. Since you are making your loan more favourable to the bank, you get to bargain to make the loan more favourable to yourself as well. In case the car's value depreciates fast or the used car isn’t in a very good condition, the banks may impose a higher interest rate and decrease the loan amount.
1. What is the best rate of interest I can get for a car loan with Lakshmi Vilas Bank?
Numerous factors affect the interest rate you get on your car loan. Currently, Lakshmi Vilas Bank sets its interest rates based on the MCLR rate. The interest rate for used car loans is currently at 1 year MCLR + 3.10%.
2. What is the age eligibility to apply for Lakshmi Vilas Bank Used Car loan?
You must be at least 21 years of old and less than 65 years of age to apply for a used car loan with Lakshmi Vilas Bank.
3. Do I need a guarantor to avail this loan?
Not necessary. The purchased vehicle is hypothecated to the bank and serves as security until the loan is repaid.
4. What are the options available to make loan payments?
In the current digital era, all payments can be made digitally. Loan EMIs are generally assigned to a standing instruction or an ECS from your bank account.
5. What are the processing fees for the loan?
Lakshmi Vilas Bank Used Car Loans have a processing fee of 0.50% of the loan amount, subject to minimum of Rs. 1,000 and maximum of Rs. 10,000 for pre-owned four-wheeler loans.
6. What kind of vehicles can I purchase with Lakshmi Vilas Bank Used Car Loans?
Lakshmi Vilas Bank Used Car Loans can be utilized to purchase used Car/ Van/ Jeep that is not more than four years old from the date of first registration and is in good working condition.
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