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Vijaya Bank Car Loan

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Vijaya Bank Car Loan

Owning a car, be it first hand or a used one, is mostly treated as a milestone in one’s life. Other than the practical usage, this is probably a sort of symbol of independence and a financial gratification. The aspiration to own a car in our country is only rising by the day. It is a not uncommon to see a car being purchased when we have some extra money available to us. Add to it, the availability of many new models in the market, makes us want to drive one of those hot wheels.

With the plethora of car models available to us today, comes many financial options to make the purchase easily and with minimum cost. Many car dealers tie-up with leading banks and lending institutions to be make it easy for the potential car owners. This helps many young and seasoned working people to buy a car. Many dreams are getting fulfilled with this easy availability of financial assistance to buy a four wheeler.

If you have a regular source of income with good credit eligibility, owning that favourite car will not be a dream anymore. Car loans are easily available today with many options to work out comfortable EMIs. With informed decision-making and smart choices, you will be able to sustain a car loan as well as manage rest of your finances for other needs.

What is a car loan?

Car loan is a financial assistance taken to purchase a car with minimal initial payment from your own pocket. The borrowed money from the lender can be repaid in equal monthly instalments over a period of time with an agreed rate of interest. Normally, car loans are secured with the vehicle itself that is being bought. It is treated as a security for the car loan. In case, the loan is not repaid within the stipulated time period, the lender can possess your car and sell it off to end the dues.

Leading banks offer various options of car loans to suit your needs. On the basis of your credit eligibility, car loans are processed now in a matter of 3-4 days. Before you apply for a car loan, it is important to check for your credit score. The principal amount, tenure of the loan, applicable interest rate, your own income flow, other expenses and terms & conditions must be worked out.

Vijaya Bank Car Loan

Vijaya Bank is a public sector bank with its corporate office in Bangalore, Karnataka. It has a network of 2000+ branches across the country. The bank offers many products and services like savings account, deposits, loans & advances, NRI services, credit cards, remittances, special schemes for women and loans against securities.

V-Wheels is the car loan brand of Vijaya Bank. This loan is available for the purpose of buying a new car or a used car for private, professional or business use. Other than offering attractive loans, the bank website has also made available EMI calculator for your easy understanding of the loan.

Vijaya Bank Car Loan Eligibility

What is the eligibility criteria to avail the Vijaya Bank Car Loan?

AGEMinimum 21 years
Maximum 60 years
EMPLOYMENT TYPEIndividuals/Self Employed/Reputed Firms/Govt.
Employee/Professionals/Corporates/Pensioners (from the bank)
MINIMUM INCOMENet take home salary/income of 30% after all deductions including EMI of the car loan
MAXIMUM LOAN AMOUNTUpto 100% of the invoice value or the cost if salary is remitted through the bank or mortgage of property secured to an existing home loan is provided as security
TENUREMaximum 84 months for a new car
Maximum 60 months for a used car

Documents Required

The main documents required for processing a car loan from Vijaya Bank is as follows:

  • Residence of Proof
  • Photo ID and Age Proof
  • Signed application form with photograph
  • Bank statement of last 6 months
  • Salaried Applicants need to submit salary slips of last 3 months and Form 16
  • Self Employed Applicants need to submit Income Tax Returns of last 3 years and Audited Balance Sheet + P&L Account

Vijaya Bank Car Loan Interest

Vijaya Bank offers competitive interest rates for its car loans. These are floating rates and are determined depending on the current base rate of the bank. The base rate is currently 9.65% for a loan tenure upto 84 months. The floating rate will be 10.05% including MCLR. The interest rate gets revised on a periodic basis and prevailing rates at the time of applying for the loan will be applicable.

Fees and Charges

Banks charge processing fees and charges while offering a loan. Some of the main charges in this regard is mentioned below. You should be aware that the bank can make changes to these fees and one must check with the bank on the currently applicable charges at the time of taking a loan.

LOAN PROCESSING CHARGES0.1% to 0.55% depending on the loan amount /-
PRECLOSURE CHARGESNIL
INSPECTION CHARGES (second hand car)INR 500/-+tax for loans upto INR 1 lakh
INR 1000/-+tax for loans from INR 1 lakh to INR 10 lakhs
INR 2000/-+tax for loans above INR 10 lakh

Vijaya Car Loan Statement

In order to keep track of our loan payments and pending EMIs, it is important to have car loan statements on a periodic basis. The Vijaya car loan statement will include your interest rate, loan balance, payments done during the statement period and extra fees if any. This gives a snapshot of the amount to be paid towards settling the loan. The statement can also help you decide to pre-close the loan account, if feasible.

Factors that affect car loan interest rate

Vijaya Bank car loan interest rates are normally affected by various factors including your own credit profile.

Down Payment or the Initial payment made for booking the car has a huge impact on the interest rate that will be charged by the bank. Making a huge amount of down payment might be difficult but it helps you in the long run. Banks tend to offer a better car loan deal and lower interest rate if you can make a good initial payment.

Income of the applicant plays a huge role in getting a good interest rate from the banks. In case, you fall short or would like to enhance your income status, Vijaya bank allows the addition of co-applicant to improve your income criteria and thereby, increase your chances of getting a better interest rate.

Market Conditions can change at any time. This has a variable effect on the interest rates offered on car loans. Inflation rate has a major effect on this. If inflation goes up, the interest rate might also increase. Interest rates might also be revised due to rate changes by RBI.

Car Model also plays an important role in determining the interest rate. The model make and resale value is taken into consideration. In case, you default in repaying the loan amount, the bank seizes the car and sells it at a best possible price to get back the dues.

How to Apply

One of the easiest ways to apply for Vijaya Bank Car loan is to apply online on their website. The turnaround time is quite fast for car loans.

Alternatively, you can drop in to the closest branch of the bank and directly interact with the bank representative and submit the application. It is possible to track the status of your loan online.

Vijaya Bank Car Loan Eligibility Check

The main step in ensuring that your loan application does not get rejected is to check your credit worthiness. www.creditmantri.com helps in understanding your credit score just in few steps. This is quite easy and this service is available free of cost. You can manage the credit score by paying off any pending dues before applying for a car loan.

Vijaya Bank Car Loan EMI Calculator

Vijaya Bank offers car loan EMI calculator on its website to help you arrive at a manageable EMI for the tenure of the loan. You can also work out different combinations of tenure, interest rate and principal amount before negotiating with the bank.

Choosing a car loan

With the availability of many lenders in the car loan market, how do you make a right choice? Firstly, you must evaluate your own financial condition. What is your currently income and expenses? Do you have dues to pay? How much money can you spare on a monthly basis to repay the car loan? It is very important to do this homework before heading out to finalise a car loan.

Secondly, assess your credit worthiness. Why is this important? The banks and lending institutions primarily consider your credit score to determine the confirmation of the loan as well as the interest rate. This score can be checked with leading financial service providers like www.creditmantri.com and some of the other leading banks.

Once your financial system is in order, it is suggested to work out the loan details for 2 or 3 car models of your choice for comparison. The principal loan amount, interest rate, tenure, EMIs and down payments need to be worked out further with your preferred bank. It is also important to check for post loan confirmation services like automatic EMI payments, pre-closure of the loan, online tracking of your loan account and car loan statements.

Vijaya Bank Car Loan FAQs

1. How much financing is offered by Vijaya Bank on a new car?

Vijaya Bank offers upto 85% of the invoice value of the car provided all documentation and requirements are fulfilled by the applicant.

2. Does the bank generate car loan statement?

Yes. Vijaya car loan statements are available on a periodic basis with interest rate, balance loan amount and payments made.

3. How can I apply for a car loan with Vijaya Bank?

You can apply online on their website and also visit the closest bank branch

4. What type of interest rate is charged by the bank?

Vijaya bank charges a floating rate of interest on the car loan

5. What is the maximum loan tenure available?

84 months

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