Industrial Development Bank of India (IDBI Bank Limited or IDBI Bank or IDBI) started its operations in 1964. Today, it is a development finance institution and also a subsidiary of Life Insurance Corporation. Like other banks, even IDBI offers car loan for both used and new car buyers. IDBI Bank New Car Loan interest rate starts from 8.70%. Of course, the interest rate varies on the basis of factors like the borrower’s age, occupation, loan amount, and even the loan tenure.
|Features||New Car Loan||Used Car Loan|
|Loan Tenure||Upto 7 years||Not Available|
|Lowest EMI||₹ 1,619 per lakh||₹ 0 per lakh|
|Loan Amount||Upto 90% of ex-showroom price||Not Available|
|Prepayment Charges||No prepayment allowed for 6 months; 1% foreclosure||Not Available|
As is the case with other banks, even at IDBI the new car loan interest rate varies on the basis of many factors. These include things like the borrower’s age, his CIBIL score, loan tenure and even his employment category. Here is a table that describes these things in detail –
|Loan amount||The interest rate is inversely proportional to the loan amount, which means a lower loan amount can attract a higher rate of interest.|
|Your Salary||Even the salary is inversely proportional to the interest rate. Hence, a higher salary leads to lower interest rates|
|Employer Category||Employer category of the person who takes a loan has a direct effect on the rate of interest as those working in reputed companies have a lower risk of defaulting on the payment.|
|Relationship with the Bank||IDBI Bank offers special rates to those existing customers who have a good repayment history.|
|Loan Tenure||Even in this case, the interest rate is inversely proportional to the interest rate. The higher the loan tenure lower will be the interest rate. However, the interest amount you end up paying back will be higher.|
|Repayment Capacity||IDBI bank even decides the rate of interest you’ll be required to pay based on the repayment capacity calculated as per the CIBIL score.|
The following table depicts the various eligibility criteria for availing a vehicle loan-
|Eligibility Criteria||Eligibility Details|
|Age||18 years – 70 years|
|Minimum Annual Income||Salaried: ₹ 1.50 Lakhs |
Self Employed Professionals: ₹ 1.50 Lakhs
Self Employed Businessmen: ₹ 1.50 Lakhs
|Minimum Credit Score||700 and above|
|Loan Tenure||7 years|
|Loan to Value Ratio||90% of ex-showroom price|
While the car loan eligibility depends on many factors, the most important of them all is the borrower’s capability to return the loan. Here are all the im,portant factors –
Age: The borrower’s age is among the most important factors in deciding the car loan eligibility criteria. The borrowe should be at least 18 years old but not more than 70 years of age at the time of maturity of the loan.
Income: Higher the income, the higher the new car loan eligibility at IDBI Bank. Also, the minimum income to be eligible for a car loan from IDBI Bank is Rs 1.50 lakh per annum.
Job stability and Profession: Job stability improves car loan eligibility and so does profession. Those working in reputed companies and have a good profile get car loans at lower interest rates.
CIBIL Score: Higher the CIBIL score, the higher is your loan eligibility. Basically, a good CIBIL score shows a good repayment history which reassures the bank of less chances of a payment default. Generally, banks give loans to only those having a CIBIL score of more than 700.
The EMI of your IDBI bank car loan is the fixed amount you have to pay the bank every month to return the car loan in easy monthly instalments. At IDBI bank, the lowest available EMI is Rs 1,619 calculated at 8.70 per cent for a loan tenure of 7 years.
|Loan Amount||2 Year Loan||4 Year Loan||7 Year Loan|
|₹ 3 Lakh||₹ 13,733||₹ 7,494||₹ 4,857|
|₹ 6 Lakh||₹ 27,466||₹ 14,988||₹ 9,714|
|₹ 12 Lakh||₹ 54,932||₹ 29,976||₹ 19,429|
|Foreclosure Charges||There are no prepayments allowed for the first six month, after which you can foreclose the loan after paying a 1% foreclosure penalty.|
|Processing Fee||IDBI Bank asks for a processing fee of Max. ₹ 0 with applicable service tax.|
You can transfer your IDBI Bank car loan balance to another bank but to avail this facility, you need to check the intricacies at the nearest IndusInd. The availability
You can top up the car loan once you’ve checked your eligibility for doing so. You can check this at any IndusInd branch that has a car loan department.
When applying for a new car loan at IDBI bank, the applicant is required to provide a set of documents to the bank. These documents differ for salaried employees and self-employed people. The table you see below gives a list of documents one needs to provide based on his employment category.
|Types of Employee||Documents|
|Salaried Employees||Filled up loan application form2 Passport Size PhotoCopy of Income Tax PAN, Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN/Quotation of car/Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), PassportIncome Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debitR.C of Vehicle and Insurance of Car|
|Self-Employed||Filled up loan application form2 Passport Size PhotoCopy of Income Tax PANIdentity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PANQuotation of carResidential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), PassportIncome Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debitR.C of Vehicle and Insurance of Car|
The IDBI Bank car loan interest rate is based on many factors. The IDBI Bank car loan interest rates for both new car loans range from as low as 9.3 per cent per annum. Below, we have a list of factors that determine the interest rate at which you get the car loan:
|Factors Determining IndusInd Bank Car Loan Interest Rate|
|Loan amount||Higher the loan amount, lower will be the rate of interest.|
|Your Salary||Higher the salary, lower will be the rate of interest at which you’ll get a car loan.|
|Employer Category||The borrower’s employer category plays a huge role in deciding the IndusInd Bank car loan interest rate. Those working in companies recognized by the IndusInd Bank tend to get new car loans at a relatively lower interest rate.|
|Relationship with the Bank||You can benefit from a special rate of interest for IndusInd Bank new car loan in case you are an existing account holder of the IndusInd bank and enjoy a good reputation in the eyes of the banker.|
|Loan Tenure||IndusInd Bank offers a loan tenure of up to 7 years.|
|Repayment Capacity||The IndusInd Bank car loan interest rate is also decided as per the CIBIL score of the borrower.|
A: Currently, the car loan interest rate being offered by IDBI Bank ranges from 9.2 to 9.9 per cent.
A: At IDBI bank, the lowest available EMI is Rs 1,619 calculated at 8.70 per cent for a loan tenure of 7 years.
A: The maximum loan period at IDBI Bank is 7 years.
A: IDBI Bank offers up to 90% finance of ex-showroom price of the vehicle.
A: Yes, age is among the most important factors in deciding the car loan eligibility criteria. The borrowe should be at least 18 years old but not more than 70 years of age at the time of maturity of the loan.
A: There are no prepayments allowed for the first six month, after which you can foreclose the loan after paying a 1% foreclosure penalty.
A: Yes, you can add your spouse’s income while applying for IDBI Bank car loan to improve the eligibility criteria.