Karur Vysya (KVB) Car Loan Interest Rates
Karur Vysya Bank is a century old private sector bank in India. KVB has a variety of products and services including Retail Banking, Corporate Banking, MSME Banking, NRI Banking, Agricultural Banking, Insurance and Loans among others. Loan products of the Bank also include car loans that come with longer tenure and up to 100% financing option. Given below are the details of the car loans at Karur Vysya Bank and the interest rates charged on auto loans.
Karur Vysya Bank offers its customers car loans at affordable interest rates ranging between 9.65% and 11.65% for new cars and 12.75% and 16.75% for old cars. The repayment tenure is also flexible and can vary between 1 year and 7 years. The rate of interest charged on your loan amount depends on various factors such as the loan amount, repayment tenure, credit score, etc.
Karur Vysya Bank Car Loan
|Features||New Car Loan||Used Car Loan|
|Interest rates||9.65% – 11.65%||12.75% and 16.75%|
|Loan tenure||Up to 7 years||Up to 5 years|
|Margin||Up to 10% of the cost of the car||Up to 40% of the cost of car, provided the vehicle is not older than 5 years|
|Processing fee||Loan up to Rs.10 lakh: Rs.3,000Loan above Rs.10 lakh: Rs.7,500||Loan up to Rs.10 lakh: Rs.3,000Loan above Rs.10 lakh: Rs.7,500|
|Lowest EMI/lakh||Rs.821 per lakh for a loan amount of Rs.1 lakh, tenure of 7 years, and rate of interest at 9.65%.||Rs.1,131 per lakh for a loan amount of Rs.1 lakh, tenure of 5 years, and rate of interest at 12.75%.|
Factors Affecting KVB Car Loan Interest Rates
In most cases, the interest rate stipulated by the bank remains the same. However, there are certain factors that can affect your Karur Vysya Bank car loan interest rate. These can also impact the loan amount sanctioned to the prospective borrower, along with the EMI to be paid-out. Few of these factors are given below.
- Collateral Security – Pledging a collateral security with Karur Vysya Bank is an optional condition laid down by the bank. However, if you opt to pledge a valuable collateral such as Bank Deposits, KVP/NSC/LIC Policies, Land & Building etc., then the chances for a car loan approval at the lowest prevailing rate of interest is a high probability, provided that the other key factors are also favorable.
- Guarantee – A reliable guarantor for your car loan can spike your chances of getting a favorable car loan approval and may also assist you in negotiating a lower rate of interest. The spouse or any other individual who meets the eligibility criteria can stand as the Co-obligor to your loan.
- Loan Tenure – If the tenure you have chosen for your car loan is longer, it indicates higher risk of default payments to the bank. To negate this risk the bank might increase the interest rate applicable on the loan. By going for a lower loan tenure, the bank will be assured of quicker repayment so you can expect a lower interest rate.
- Income– High-income earning applicants are more creditworthy since they have a higher repayment capacity, provided their debt to income ratio is well-balanced. In this scenario, it is easier for the borrower to negotiate with the Bank for a lower rate of interest.
- Loan Margin – The extent of down payment made initially on the car by the borrower also affects the borrower’s car loan interest rate. Higher the loan margin or down payment made by the borrower, greater are his chances of a favorable car loan package.
- CIBIL Scores – An individual’s credit history is reflected in his/her CIBIL score. The credit score of an individual is one of the initial credit evaluation measures undertaken by banks. The Credit Information Report helps to generate this rating. Having a high CIBIL Score will influence the bank to lower the rate of interest that is applicable on the loan quantum of your choice. It is advisable to always check your CIBIL Score and pay off all dues before applying for a car loan.
- Existing Customers – Those who are existing customers of Karur Vysya Bank have a higher probability of getting a car loan quickly, at lower rates of interest. Karur Vysya Bank offers various car loan benefits for established customers of the Bank and especially for those who have any deposits in Karur Vysya Bank.
Amount of Loan
Karur Vysya Bank provides up to 100% of the value of the on road price of the vehicle. The quantum of loan disbursed will vary on a case to case basis and is dependent on the credit profile of the applicant as well as their repayment capacity.
Rate of Interest
The rate of interest levied on the Flexi Mobile Car Loans is based on the Repo rate. These are floating rates and differ in case of loans for purchase of new cars or used or second hand cars. The current applicable rates levied by Karur Vysya Bank for Flexi Mobile Car loans are tabled below.
|Loan Type||Minimum Interest Rate||Maximum Interest Rate|
|Flexi Mobile Car Loan||8.50%||8.75%|
|Flexi Mobile Used Car Loan||12%||16.50%|
The tenure of the car loan offered by the bank is a maximum period of 7 years for new cars and 5 years for used cars. The repayment schedule can be flexible and can be negotiated with the bank as per their guidelines. Borrowers can repay the loan through post dated cheques or ECS or auto debits.
Margin money is the portion of the value of the vehicle that has to be furnished by the borrower as part of the loan process. The bank has specified the4 margin money to be furnished by the borrowers in case of purchase of used cars as well as new cars. This amount is the minimum amount that has to be provided by the borrower. The borrower has the discretion to provide more margin money and reduce the loan liability. The margin money as per the guidelines of Karur Vysya Bank is tabled below.
|Type of Loan||Margin Money|
|Flexi Mobile Car Loan||10% of the value of the car|
|Flexi Mobile Used Car Loan||40% of the value of the car|
The primary security against the loan provided by the Bank is the vehicle purchased out of the loan. Bank has a hypothecation charge on such vehicles. Borrowers can provide additional security like NPS certificate, LIC policy, Bank Deposits, etc. if required by the bank depending on case to case basis.
Apart from the above, the borrower also needs to provide a third party guarantee of a person having suitable net worth that can be acceptable to the Bank. Such guarantors can be preferably the spouse or any family member or any friend of the borrower.
The processing fees are the nominal charges levied by the bank for sanctioning the loan. These charges are dependent on the amount of loan sanctioned and are tabled below.
|Loan amount||Processing charges|
|Up to Rs. 10,00,000||Rs. 3,000|
|Above Rs. 10,00,000||Rs. 7,500|
The bank provides the benefit of an insurance cover to the borrower with BAGIC. Such cover is available to the extent of the loan amount and is payable by the borrower at his/her discretion
Part payment or Foreclosure Charges
Karur Vysya Bank does not levy any part payment or foreclosure charges on any of its retail loans that have floating rates of interest.
Eligibility for Karur Vysya Bank Car Loan
The bank provides car loans to all the residents of the country. This means that these loans can be availed by individuals or non-individuals in our country. The purpose for these loans as mentioned above can be either for personal use or for commercial purpose.
Furthermore, the bank has explicitly excluded the car hire purpose from the eligibility criterion. Also, in case of second hand vehicles, the age of the vehicle has to be less than 5 years.
What are the documents needed for Karur Vysya Bank Car Loan?
The Bank requires the applicants to submit a set of documents that are essential to complete the application as well as help ascertain the eligibility of the applicant. These documents are mentioned below.
Applicant can submit any of the following documents as an identity proof in this regard
- Driving License
- Voter Id
- Pan Card
- Aadhaar Card
Any of the following documents can be considered as an address proof for the purpose of applying a loan
- Aadhaar Card
- Latest Utility Bills
- Leave and License Agreement
- Rental Agreement
- Title Deed of the Residence
- Birth Certificate
- Aadhaar Card
- PAN Card
Car Related Documents
Applicants are also required to submit documents relating to the car that has to be purchased out of the loan. These documents are,
- Proforma Invoice of the car
- RC copy of the Vehicle
- Insurance copy of the Vehicle
Bank Statement for the past 6 months
Recent Passport Size Photographs
Duly filled Application Form
What is the application process for Karur Vysya Bank Car Loans?
The application process for the car loan of the bank is very simple and basic. The bank provides the benefit of faster processing of loans so the applicants can get immediate finances for purchasing the new or second hand vehicles.
Potential borrowers can apply for the loan by directly visiting the nearest branch of the bank or by contacting the bank through its customer care service.
Another easier way to apply for the loan is through the website of the bank. Applicants can click on the link provided below and provide their basic information as required by the bank. The representatives of the bank will then contact the applicants for further details and the process of applying for a loan for purchasing a new or used car.
Home>> Personal>> Loans>> Flexi Mobile Car Loan>> Apply Now
Karura Vysya Bank Frequently Asked Questions (FAQs)
How do I get in touch with the bank’s customer care support in case of any query?
You have number of options provided by the bank which you can use to get your query resolved. You can send an email to [email protected] or call on the bank’s domestic helpline number – 1860 200 1916. If you reside outside India and wish to get in touch with a customer care executive, you can call on the helpline number +91 44-30721916. You can also use the bank’s ‘live chat’ facility to get your query resolved. To use the ‘live chat’ facility, you will have to visit the official website of the bank.
I am engaged in a car hiring business. Can I avail a car loan from Karura Vysya Bank?
No, you cannot avail a car loan from Karura Vysya Bank if you are in the car hiring business. One can avail a car loan from the bank only if they wish to use the vehicle for their private needs or other business needs which the person will have to specify to the bank.
Is there any EMI calculator I can use before applying for a car loan from Karura Vysya Bank?
You can visit the official website of Karura Vysya Bank and avail the EMI calculator provided by them. You will have to enter the loan amount, interest rate, and the repayment tenure in order to determine the EMI you will have to pay.
You can also make use of the car loan EMI calculator provided by national info. You will have to enter the loan amount, rate of interest, and the repayment period. In case you wish to prepay your loan in the future, then the prepayment charge will have to entered. After entering all the relevant details, click on ‘Calculate’, and you will be able to check the monthly EMI you will have to pay.
How can I apply for a Karura Vysya Bank car loan online?
You will have to visit the official website of Karura Vysya Bank in order to apply for a car loan online. Click on ‘Personal’ and under it locate ‘Vehicle Loan’. You will be directed to a new page, where on the top right-hand side of the page you will find the ‘Apply Now’ option. Click on it and a new page will open. There you will have to enter your details such as your name, mobile number, email ID, state and city in which you reside. You will have to authorise the bank to communicate with you either by mail or phone. Once you have done that, click on ‘Submit’. You will receive a call or a mail from a bank official who will assist you with the process of applying for a car loan.
Can I apply for a car loan from Karura Vysya Bank offline?
Yes, you can apply for a car loan from Karura Vysya Bank offline by visiting the nearest branch of the bank. You must ensure you carry all the relevant documents with you to the bank. An official from the bank will assist you with the process of applying for a car loan from the bank.