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|
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 IDBI Bank Car Loan EMI Calculator can be used free of cost. Using this tool, one can quickly and efficiently perform large calculations without any manual effort other than feeding in the required values. The salient features of the EMI calculator of IDBI Bank include:
As can be seen in the two tables we’ve provided in this post, the loan tenure has a direct effect on the EMI one needs to pay to the bank every month. Here are the details –
The interest rate at which IDBl Bank car loan is provided to an individual is decided through a set of factors. It must be noted that the IDBI Bank car loan rates start as low as 8.70 per cent per annum. Given below is a list of all the factors that help the bank figure out the interest rate that it charges to the loan applicant:
|Loan amount||The bigger the loan, the lower is its interest rate|
|Your Salary||Higher the earning, lower the interest rate.|
|Employer Category||The employment category makes a huge difference on the rate of interest at which one gets the loan.|
|Relationship with the Bank||Existing customers of IDBI Bank with a good reputation in terms of repayment history can get car loans at slightly lower rates|
|Loan Tenure||IDBI Bank offers new car loans with a loan period of 7 years.|
|Repayment Capacity||IDBI Bank checks the repayment history through the CIBIL score|
IDBI Bank provides new car loan but does not offer a used car loan, which means if you are one of those who want to buy a second-hand car, you’ll have to take loan from some other bank
If you have paid all your car loan EMIs timely for a minimum period of 9 months, you can simply opt for a top-up on the IDBI Bank car loan. Through this, the loan holder benefits from an additional loan to amount, at a competitive rate of interest. Kotak Bank Car Loan against Car scheme offers the below features:
A: If you apply for a car loan from IDBI Bank, your lowest EMI per lakh will be Rs. 1619.08.
A: IDBI car loan interest rates today are 9.20% to 9.90%.
A: You can repay your car loan from IDBI Bank in a flexible period of 7 years.
A: IDBI Bank offers you 90% of ex-showroom price of the car as loan.
A: Yes, age is an important eligibility factor to get IDBI Bank car loan as you should be at least 18 years old at loan approval time and 70 years old at loan maturity time.
A: You can take a car loan from IDBI Bank with No prepayment allowed for 6 months; 1% foreclosure prepayment charges.
A: You can combine your income with the income of your spouse to increase your loan eligibility and to get a higher loan amount.