IndusInd Bank Car Loan Interest Rates
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IndusInd Bank Car Loan Interest Rates

Team CARS24
editor

IndusInd Bank is among the more popular private sector organisations in the banking industry of the country. Like its competitors, this bank provides new and used car loans with the interest rates for the former starting from as low as 8.65%. However, the rate of interest at which one gets the loan is decided on the basis of many factors.

FeaturesNew Car LoanUsed Car Loan
Processing Fee5.00% Min Rs. 2,500% Min Rs. 0 Max Rs. 0
Loan TenureUpto 5 years Not Available
Lowest EMI₹ 2,059 per lakh₹ 0 per lakh
Loan AmountUpto 85% of ex-showroom priceNot Available 
Prepayment Charges3%Not Available

IndusInd Bank Car Loan Interest Rate

The IndusInd bank car loan interest rate is based on many variables, including factors like loan amount, the earning of a borrower, repayment history, loan tenure, and even his employment category. These factors are determined through an individual’s CIBIL score –

Loan amountLower the loan amount, the higher could be the interest rate. IndusInd Bank provides up to 85% finance of ex-showroom price of a new car.
Your SalaryHigher salary leads to lower interest rates as people who earn more could find it easier to repay the loan.
Employer CategoryEmployer 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 BankIndusInd Bank offers special rates to those existing customers who have a good repayment history.
Loan TenureHigher the loan tenure lower will be the interest rate but higher will be the interest you’ll end up paying by the time your tenure ends.
Repayment Capacity IndusInd bank determines the repayment history of the borrower through his CIBIL score and sets the interest rate for him accordingly.

IndusInd Bank Car Loan Eligibility Criteria

Like all banks, IndusInd follows set criteria to determine the loan eligibility of an applicant. These factors comprise of bits like the borrower’s annual income, credit score, loan tenure, and the loan to value ratio. The below table charts out the IndusInd Bank car loan eligibility criteria.

Eligibility CriteriaEligibility Details
Age21 years – 65 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 Tenure5 years
Loan to Value Ratio85% of ex-showroom price

IndusInd Bank EMI Car Loan Calculator

 Factors Determining EMI
Rate of interest The higher the rate of interest of the IndusInd Bank car loan, the higher will be the EMI you will pay to the bank every month.
Loan tenureHigher the loan tenure lower will be the EMI
Loan AmountHigher the loan amount, higher will be the EMI

Like all car loan EMI calculators, this tool from IndusInd bank works on a standard formula. To use the IndusInd Bank Car Loan EMI calculator, one just needs to feed in the varliables like loan amount, interest rate and loan tenure, and the EMI is displayed by this tool within micro-seconds. The car loan EMI calculator formula is as given below –

E= P. r. (1+r)n/[(1+r) n -1]

Here,

P is the principal amount

r is the rate of interest per month

n is the tenure of loan in months

E represents the monthly payment or EMI

IndusInd Bank Auto Loan Fee and Charges

It must be noted here that every bank has some standard charges on a loan. These include foreclosure charges and processing fee. Most banks charge a foreclosure penalty in case you need to repay your loan early, be it in part or in full. Similarly, most banks charge a processing fee when issuing your loan. Similarly, even IndusInd Bank auto loan fee and charges have been given below –

Foreclosure Charges This is a charge that you need to pay if you decide to repay your loan amount before the end of tenure period. IndusInd Bank allows prepayment after payment of the 1st EMI at a rate of 3% of outstanding amount.
Processing FeeIndusInd Bank asks for a processing fee of 5.00% of loan amount along with the applicable service tax.

How can I Transfer my IndusInd Bank Car Loan Balance?

You can transfer your IndusInd Bank car loan balance to another bank but to avail this facility, you need to check the intricacies at the nearest IndusInd. The availability

How can I top up my IndusInd Bank Car Loan?

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.

Documents required for IndusInd Bank Car Loan

The loan applicant requires to submit a set of documents to the bank branch when applying for a car loan. The documents that one needs to submit differ between salaried employees and self-employed professionals. The table we have below lists out the documents one needs to provide based on his employment category.

Types of EmployeeDocuments
Salaried EmployeesFilled 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

Factors Affecting IndusInd Bank Car Loan Interest Rates

The IndusInd Bank car loan interest rate is based on many factors. The ICICI 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 amountHigher the loan amount, lower will be the rate of interest.
Your SalaryHigher 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 BankYou 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 CapacityThe IndusInd Bank car loan interest rate is also decided as per the CIBIL score of the borrower.

FAQs

Q: What is car loan interest rate offered by IndusInd Bank?

A: At present, IndusInd Bank car loan interest rate is pegged at 8.65% to 16%.

Q: What is the lowest EMI per lakh on IndusInd Bank car loan?

A: At present, the lowest EMI per lakh on IndusInd Bank car loan is Rs 1,189, calculated at an interest rate of 8.65% for a loan tenure of 5 years. .

Q: What is the maximum tenure of IndusInd Bank car loan?

A: You can repay your IndusInd car loan in a maximum period of 60 months.

Q: How much processing fee is charged by IndusInd Bank on car loan?

A: IndusInd Bank asks for a processing fee of 5.00% of loan amount along with the applicable service tax.

Q: How much car loan I can borrow from IndusInd Bank?

A: IndusInd Bank provides finance of up to 85% of ex-showroom price of car

Q: Is age an eligibility factor to get car loan from IndusInd Bank?

A: Age is one of the most important eligibility criteria to avail IndusInd Bank car loan. You must be at least 21 years of age and not older than 65 years of age at maturity time to get car loan from this private sector bank.

Q: Are there any prepayment charges on IndusInd Bank car loan?

A: There is a prepayment charge of 3% of the outstanding principal amount in case you wish to foreclose your car loan at IndusInd Bank.

Q: Can I add my spouse’s income while applying for car loan from IndusInd Bank ?

A: Yes, you can add your spouse’s income when applying for car loan at IndusInd Bank as doing so improves your eligibility and can help you get a higher loan amount.

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