Karnataka Bank Car Loan Interest Rate

Last Updated 19th Apr 2018

Karnataka Bank Car Loan Interest Rate Apr 2018

Karnataka Bank New Car Loan interest rate starts from 10.25% and Karnataka Bank Used Car Loan interest rates starts from 14.45% . These are Floating rate loans and are one of the best car loan rates in India. Rate of interest vary by borrower occupation, loan amount and loan tenure. Check Best Offers

Karnataka Bank Car Loan
Features New Car Loan Used Car Loan
Processing Fee 0.25% Min Rs. 250 Max Rs. 1,000 0.25% Min Rs. 250 Max Rs. 1,000
Loan Tenure Upto 5 years Upto 3 years
Lowest EMI Rs. 2,137 per lakh Rs. 3,238 per lakh
Loan Amount Upto 85% Upto 60% of market value
Prepayment Charges Nil Nil

Transparency with no hidden costs

Apply Car Loan @ 9.25%*
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Karnataka Bank Car Loan

Karnataka Bank gives car loan to borrowers who need funds to buy a new car. Benefits of taking vehicle loan from Karnataka Bank are:

  • Transparency with no hidden costs
  • Zero prepayment charges
  • Quick and easy Processing

Karnataka Bank Car Loan Interest Rate

Karnataka Bank Car Loan interest rate depends upon following factors -

  • Loan amount: Generally banks offer lower interest rates for higher amount. Karnataka Bank offers 85% of your car.
  • Your Salary: Higher salary bracket individuals are offered loans at lower interest rates. Car Loan interest rate Karnataka Bank varies with your net monthly income.
  • Employer Category: Employer category of the borrower is a major deciding factor in order to determine his/her rate of interest. Karnataka Bank has a list of company categories of salaried individuals to which they avail vehicle loan. So, higher company category leads to low Karnataka Bank car loan rate.
  • Relationship with the Bank: Karnataka Bank offers special rates, offers and charges to the existing account holders of the bank. Those who have managed their accounts and made all the payments on time in past will get benefit of low vehicle loan interest rate.
  • Loan Tenure: Karnataka Bank vehicle loans are of longer repayment tenure of 5 years.
  • Repayment Capacity: Before giving loan to the borrower, Karnataka Bank checks the repayment capacity of the borrower. Bank verifies the repayment capacity of the customer through CIBIL as it has all the details of previous loans taken and their repayments. CIBIL also gives the information of credit card bills payment.

Karnataka Bank Car Loan Eligibility

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

Eligibility Criteria Eligibility Details
Age 0 years - 0 years
Minimum Annual Income Salaried: Rs. 1.50 Lakhs
Self Employed Professionals: Rs. 1.50 Lakhs
Self Employed Businessmen: Rs. 1.50 Lakhs
Minimum Credit Score 700 and above
Loan Tenure 5 years
Loan to Value Ratio 85%

Car loan eligibility relies upon different factors but the most important factor is your ability to repay the loan. The main factors on which the eligibility of an applicant depends are:

Age: Age plays an important role to know your eligibility and repayment capacity. Karnataka Bank offers auto loan to those who are atleast 0 years old at the time of loan approval and maximum 0 years at the time of loan maturity.

Income: Karnataka Bank car loan calculator calculates your eligibility based upon your income. Usually bank set minimum levels of income to apply for car loan. Karnataka Bank asks for net annual income of minimum Rs. 1.50 lakhs.

Job stability and Profession: Job stability is important to improve your status and eligibility for vehicle loan from Karnataka Bank. If you are working with a reputed company, probability of getting car loan increases as the income is considered to be more stable and bank offers best Karnataka Bank car loan interest to the employees of reputed companies.

CIBIL Score: Your past CIBIL history and repayment record of existing loans and credit cards has a direct impact on your Karnataka Bank car loan eligibility. If you have a poor repayment record, then you may not get the loan but on the other side, a regular repayment record increases your vehicle loan eligibility. Generally, Bank give loan at a CIBIL score of 700 and above.

Loan Amount: Karnataka Bank auto loan amount depends upon your income. Karnataka Bank Bank gives 100% of ex-showroom price depending upon the value of the car. To improve chances of approval, apply for a loan amount that you can comfortably service and check your Karnataka Bank car loan status online and avial multiple benefits.

Karnataka Bank Car Loan Calculator

Car Loan EMI of Karnataka Bank is a fixed amount that you pay each month towards the repayment of your car loan till the end of tenure. Lowest EMI offered by Karnataka Bank is Rs. 2,137 per lakh loan amount at lowest car loan interest rate of 9.25%. Car Loan EMI of Karnataka Bank depends on factors like:

  • Rate of interest is an important factor which affects your EMI. Higher the interest rate, higher will be the EMI.
  • Loan tenure matters equally as longer tenure reduces your monthly EMI per lakh.
  • Your EMI depends upon the amount of loan you are going to borrow. Loan EMI will be high if you apply for a high loan amount.
Karnataka Bank EMI Car Loan Calculator
  • Car loan EMI calculation varies from bank to bank depending upon the method of calculation.
  • The standard convention should be to use the EMI in arrears method on reducing balance basis – whereby you pay interest on the loan amount outstanding on a reducing basis at or after the end of the month.
  • Simply key in the loan amount, rate of interest and vehicle loan tenure here and check the EMI amount using the vehicle loan EMI calculator here. In case the EMI amount displayed is different from the one advised to you by the agent, you must check the calculation basis with your vehicle loan agent.

Illustration

You can calculate the monthly payment (EMI) yourself using the following equation

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

Where,

  • P represents the principal amount that you want to apply for.
  • r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
  • n is the tenure of loan in months
  • E represents the monthly payment or EMI

Let’s say you take out a vehicle loan for Rs. 700,000 to be paid back over 5 years at an interest rate of 9.25%. Your monthly payments for this loan after applying the above formula would be Rs. 14,616 for 5 years.

Karnataka Bank Auto Loan Fee and Charges

Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. Karnataka Bank allows prepayment of vehicle loan after paying 1 EMI with prepayment Nil.

Processing Fee - Karnataka Bank asks for a processing fee of 0.25% of loan amount. Min. Rs. 250and Max. Rs.1,000 with applicable service tax.

Karnataka Bank Car Loan Top up, Balance Transfer

  • Karnataka Bank offers car loan balance transfer from another bank. This is subject to your meeting other eligibility criteria
  • You can avail additional top-up car loan from Karnataka Bank, subject to your eligibility

Documents required

Salaried Employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy 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), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car

Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy 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), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car.

Frequently Asked Questions on Karnataka Bank Car Loan

What is car loan interest rate offered by Karnataka Bank ?

As per current interest rates, Karnataka Bank car loan interest rates are in the range of 10.25 % .

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

Lowest EMI per lakh is Rs. 2,137 for Karnataka Bank for a loan availed at an interest rate of 10.25% and for a tenure of 5 years.

What is the maximum tenure of Karnataka Bank car loan?

You can repay your Karnataka Bank car loan in a flexible period of 5 years.

How much car loan I can borrow from Karnataka Bank?

Karnataka Bank offers you 85% of car as loan.

How much processing fee is charged by Karnataka Bank on car loan?

Karnataka Bank charges a processing fee of 0.25% of loan amountMin. Rs. 250 and Max. Rs. 1,000 with applicable service tax.

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

Yes, age is an important eligibility factor to get Karnataka Bank car loan as you should be at least 0 years old at loan approval time and 0 years old at loan maturity time.

Are there any prepayment charges on Karnataka Bank car loan?

You can take car loan from Karnataka Bank with prepayment nil.

Can I add my spouse's income while applying for car loan from Karnataka Bank ?

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

Compare Car Loan Interest Rates of Karnataka Bank with other banks


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