Axis Bank Car Loan
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Axis Bank Car Loan

Team CARS24
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Axis Bank came into existence back in 1994 and had its registered office in Ahmedabad. It was jointly promoted by Specified Undertaking of Unit Trust of India (SUUTI – formerly known as United Trust of India), General Insurance Corporation of India (GIC), Life Insurance Corporation of India (LIC), National Insurance Company Limited, The Oriental Insurance Company Limited, The New India Assurance Company Limited and United India Insurance Company Limited.

Currently, it’s the third-biggest private sector bank in India and provides a wide variety of finance options to its customers. Axis Bank has more than 3,120 domestic branches and 12,922 ATMs that are located across the nation. The wide network makes the banking services easily accessible to the customers.

Axis Bank Car Loan Eligibility Criteria

Like every bank, even Axis Bank has a minimum eligibility criteria that car loan applicants should meet for successful processing of the loan application. The bank has charted out clearly defined requirements based on the different classifications of the loan applicants. Here are the details –

Salaried Individuals

  • Minimum 21 years of age
  • Maximum 60 years of age at maturity (conditions apply)
  • Minimum Net Annual Salary of Rs. 2,40,000 p.a. for all approved car models
  • Income eligibility based on latest salary slip and Form 16
  • Minimum of 1 year continuous employment

Self-employed Individuals

  • Minimum 18 years of age
  • Maximum 65 years of age at loan maturity
  • Minimum Net Annual Business income of Rs. 1,80,000 p.a. for selected models and Rs. 2,00,000 p.a. for others
  • Income eligibility based on latest Income Tax Returns
  • Minimum 3 years of employment in the same line of business

Self-employed Non-individuals

  • Minimum Net Annual Business income or Rs. 1,80,000 p.a. for selected models and Rs. 2,00,000 p.a. for others
  • Income eligibility based on latest 2 years Income Tax Returns and audited financials of 2 years along with computation of income
  • Minimum 3 years of employment in the same line of business
  • Priority / Wealth / Privee customers eligible for a car loan
  • Customers with a vintage of 6 months
  • A minimum Average Quarterly Balance (AQB) as below:
  • An AQB of Rs. 1 Lakh for last 2 completed quarters. AQB requirement to be met for both the quarters
  • Maximum loan amount restricted to 3 times the AQB in the last 2 quarters

Salary Account Customers

  • Customers who have a Salary A/c with Axis Bank since the past 3 months
  • Those who work with the following organisations:
  • Public Limited and Private Limited Companies
  • MNCs
  • Permanent employees of State / Central Government
  • Permanent employees of Public Sector Undertakings
  • Permanent employees of reputed schools / colleges
  • Other factors
  • Minimum 21 years of age
  • Maximum 70 years of age at loan maturity
  • Minimum Net Annual Salary of Rs. 2,40,000 p.a.
  • Income eligibility base on latest salary slip and Form 16
  • Minimum 1 year of continuous employment

Axis Bank Car Loan Schemes

Axis Bank offers three different car loan schemes. You can choose among them based on your exact requirements. Below are the names of these schemes followed by the details of them:

a) Step Up Scheme

b) Balloon Scheme

c) 3 Month low EMI Scheme

Axis Bank Step Up Car Loan Scheme

A Step-Up Payment loan has been designed keeping in mind that the borrower’s income increases every year, and, hence, his or her repaying capacity also increases in the same capacity. Using these car loan scheme, the borrower can start the repayment with a lower EMI. Subsequently, the EMI amount increases by 10% every year. The loan covers 80% of the vehicle’s on-road cost. Below, we have a table that shows how this scheme works in case you decide to buy a car that has ah an on-road price of Rs. 6.57 lakh. In this case, the Axis Bank will fund 80% of this cost, which is approximately Rs. 5.25 lakh. Below, we have shown the EMI amount for every year –

PeriodEMI
1st Year6562
2nd year7218
3rd Year7953
4th Year8736
5th Year9607
6th Year10568
7th Year11623

Axis Bank Balloon Car Loan

An Axis Bank Balloon Payment Auto Loan scheme has a loan tenure of up to five years, which is 60 months. The loan is has been designed in such a way that the borrower pays a lower EMI up till the last instalment. In the last amount, the borrower pays 25% of the loan amount. For example, on a loan amount of Rs. 5.25 lakh for 5 years, the borrower’s EMI from 1st to 59th month is Rs. 9,513 and the last EMI is Rs. 1.31 lakh.

3 Month Low EMI Car Loan

In this car loan scheme from Axis Bank, the first three EMIs are lower and then they increase from the fourth EMI till the last EMI. This car loan scheme from Axis bank is available for a tenure of up to 5 years. This car loan scheme makes sense for those who are not certain about their immediate income for a short term. Therefore, using this scheme, they need not worry about a high monthly outgo for the first three months.

For example, for a car loan amount of Rs. 5.25 Lakh over 3 years, the borrower ends up paying an EMI of Rs 5,245/- for the first 3 months and EMI of Rs. 18,034 from the 4th to 36th month.

Axis Bank Loan EMI Calculation

Axis Bank Car Loan EMI is the fixed amount that the borrower needs to pay to the bank every month as partial repayment of your car loan. Using a car loan EMI calculator, the borrower can get to know the EMI he’ll have to pay for a certain amount. This can help him plan his finance better and, if required, even adjust the sum he plans to borrow. The free tool calculates the EMI based on the following factors –

 Factors Determining EMI
Rate of interest This has a direct relation with your EMI. Higher the rate of interest, higher will be the EMI.
Loan tenureHigher the loan tenure, lower will be the EMI. The vice versa also holds true.
Loan AmountOf course, another factor that has a direct relation with your EMI is the loan amount. More the amount you borrow, higher will be the EMI.

FAQs

Q: What is the best way to apply for an Axis Bank Car Loan?

A: In case you plan to take a car loan from Axis Bank, you can initiate the process through any of the below options –
– Online by visiting the home website of Axis Bank
– Visiting an Axis Bank branch that offers car loan services
– Calling the Axis Bank Call Centre.

Q: What is the minimum amount of Car Loan that I can get?

A: Axis Bank offers Car Loans from Rs. 1 lakh onwards.

Q: What is the tenure for which I can avail an Car Loan?

A: Axis Bank offers a flexible loan tenure that ranges from 12 to 84 months

Q: What type or make of vehicles does Axis Bank finance?

A: Axis Bank offers Car Loan for most passenger cars, multi-utility vehicles and sports-utility vehicles that are on sale in the Indian car market.

Q: What process does the Bank follow after I apply for an Car Loan?

A: On getting a completed loan application form along with necessary documents, the Axis Bank follows the below steps-
– Processing/approval of the application
– Documentation
– Sanctioning of the loan
– Disbursement of loan

Q: What security or collateral do I need to provide when I avail an Car Loan from Axis Bank?

A: The vehicle for whose purchase the loan is taken is itself used as collateral and will be hypothecated to Axis Bank for the loan period.

Q: Can I sell my vehicle before I repay the entire loan?

A: You cannot enter a transaction with any seller without a ‘No Objection Certificate’ (NOC) from Axis Bank. The NOC can only be obtained after foreclosure or after you have paid off your loan

Q: Will the Bank charge me if I cancel the Car Loan after it has been approved or disbursed?

A: Yes, a charge of Rs. 2500 plus taxes would be applicable if you cancel your Car Loan. Apart from this, certain additional charges such as stamp duty charges, interest accumulation, etc. may also be applicable. If you would like to place a cancellation request, our representative will provide you with all the necessary details at your nearest Axis Bank Loan Centre.

Q: How do I keep track of my Axis Bank Car Loan? For example, how do I get my statements and repayment schedule?

A: You may place request for Statement of Account or Repayment Schedule or Interest Certificate in either of the following ways:
By calling our Call Centre. To find the toll-free number click here
Write to us at online : www.axisbank.com/support
In person at any Axis Bank Loan Centre. To find the one closest to you, please click here

Q: Will the Bank charge me if I cancel the Car Loan after it has been approved or disbursed?

A: Yes, a charge of Rs. 2500 plus taxes would be applicable if you cancel your Car Loan. Apart from this, certain additional charges such as stamp duty charges, interest accumulation, etc. may also be applicable. I

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