IDBI Bank Car Loan
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IDBI Bank Car Loan

Team CARS24
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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.

FeaturesNew Car LoanUsed Car Loan
Loan TenureUpto 7 years Not Available
Lowest EMI₹ 1,619 per lakh₹ 0 per lakh
Loan AmountUpto 90% of ex-showroom priceNot Available 
Prepayment ChargesNo prepayment allowed for 6 months; 1% foreclosureNot Available

IDBI Bank Car Loan Eligibility Criteria

The following table depicts the various eligibility criteria for availing a vehicle loan-

Eligibility CriteriaEligibility Details
Age18 years – 70 years
Minimum Annual IncomeSalaried: ₹ 1.50 Lakhs 
Self Employed Professionals: ₹ 1.50 Lakhs 
Self Employed Businessmen: ₹ 1.50 Lakhs 
Minimum Credit Score700 and above
Loan Tenure7 years
Loan to Value Ratio90% 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.

IDBI Bank Car Loan EMI Calculator – Features and Benefits

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:

  • The prepayment option on the EMI calculator will be able to tell you the effect of a prepayment on the EMI
  • The tool is totally free of cost.
  • It is easy to use
  • It can even provide a breakup of the loan repayment
  • It can provide accurate results within seconds.

IDBI Bank Car Loan EMI Calculator Tenure

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 EMI is inversely proportional to the loan tenure.
  • That said, the higher the loan tenure, the more is the interest one has to pay.
  • The EMI includes the principal component as well as interest. The EMI remains the same throughout the loan period, the interest component of every EMI differs.
  • The interest component is the highest in the first EMI you pay and reduces with every instalment.

Factors Affecting IDBI Bank Car Loan Interest Rates

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 Used Car Loan

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

IDBI Bank Loan Against Car

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:

  • Finance option of up to 90% of the original loan value of the car available

  • Car valuation is not mandatory.

  • A wide range of approved models and manufacturers are considered by Kotak Bank

  • One can benefit from quick and hassle-free disbursal of the additional loan amount.

FAQs

✅What is the lowest EMI per lakh on IDBI Bank car loan?

A: If you apply for a car loan from IDBI Bank, your lowest EMI per lakh will be Rs. 1619.08.

✅How much interest is charged by IDBI Bank on car loan?

A: IDBI car loan interest rates today are 9.20% to 9.90%.

✅What is the maximum tenure of IDBI Bank car loan?

A: You can repay your car loan from IDBI Bank in a flexible period of 7 years.

✅How much car loan can I borrow from IDBI Bank?

A: IDBI Bank offers you 90% of ex-showroom price of the car as loan.

✅Is age an eligibility factor to get car loan from IDBI Bank?

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.

✅Are there any prepayment charges on IDBI Bank car loan?

A: You can take a car loan from IDBI Bank with No prepayment allowed for 6 months; 1% foreclosure prepayment charges.

✅Can I add my spouse’s income while applying for car loan from IDBI Bank ?

A: You can combine your income with the income of your spouse to increase your loan eligibility and to get a higher loan amount.

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