Axis Bank Car Loan Interest Rates

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08 min read.

Axis Bank, initially founded in 1993 as UTI bank, is the third-largest private-sector bank in India, delivering various financial services. Axis Bank offers you great benefits on car loans, such as competitive interest rates, no need for a guarantor, and nil pre-closure charges if you decide to settle the loan early.

Read on to know more.

Types of car loan schemes of Axis Bank

New Car LoanGet minimum financing of Rs.1 lakh up to 100% of on-road price along with benefits, such as attractive interest rates, comfortable tenure, Axis eDGE reward points, and more. Get a repayment tenure of up to 7 years on select schemes.
Pre-Owned Car LoanYou can get up to 85% of the car’s evaluation on a pre-owned car as financing with a minimum sum of Rs.1 lakh. Speedy approvals, complete transfer support. Maximum repayment tenure of 5 years.
Balance Transfer and Top Up Car LoanAvail balance transfer facility on car loans or top-up your car loan for some extra cash. High-value loans are offered up to 150% of the original loan amount at attractive interest rates. Priority Banking customers get special benefits of a maximum tenure of up to 5 years.
Smart Buyback Car LoansAxis Bank partners with CarDekho to offer this scheme to purchase and/or upgrade to your dream car at lower EMI with up to 67% of buyback value if you wish to return the vehicle at the end of the loan tenure.

Interest rates of Axis Bank car loans

Car Loan TypeEffective Interest Rate (% p.a.)*
New Car Loan8.70-10.95
Pre-Owned Car Loan14.45-16.45
Balance Transfer and Top Up Car Loan14.45-16.45
Smart Buyback Car Loans10.5

*Interest rates are given as of 8 March 2021.

Features and benefits of Axis Bank car loans

  • The minimum loan amount available is Rs.1 lakh.
  • Get financing of up to 100% on-road price on select models.
  • Choose flexible loan repayment tenure of up to 7 years for new cars and 5 years for pre-owned vehicles.
  • Interest rates start at 7.99% p.a.
  • The car loan value is generally calculated based on the ex-showroom price of the car.
  • Special benefits for Priority Banking customers, Wealth Banking, and Private Banking customers.
  • Axis Bank salary account customers need not provide income documents and bank account statements.
  • For pre-owned cars, avail up to 85% funding of the valuation amount.
  • In the case of balance transfer or top-up loans, get up to 150% of the original loan amount.
  • Smart Buyback car loan allows you to buy or upgrade to your dream car with an assured buyback facility of up to 67% of the car value.

Eligibility for Axis Bank car loans

  • Applicant Type:
    • Salaried individuals
    • Self-employed individuals
    • Proprietorships
    • Hindu Undivided Families (HUFs)
    • Partnership firms
    • Limited liability companies
    • Trusts
    • Societies and companies
  • Salaried Individuals:
    • Minimum: 21 years of age
    • Maximum: 60 years of age on maturity (conditions apply)
    • Minimum Net Annual Salary: Rs.2,40,000 p.a.
    • Income eligibility based on the latest salary slip and Form 16
    • Minimum of one-year continuous employment
    • Customers who have a salary account with Axis Bank for the past 3 months
    • Working with:
      • Public Limited and Private Limited Companies
      • Multi-National Companies (MNCs)
      • Permanent employees of State/Central Government
      • Permanent employees of Public Sector Undertakings
      • Permanent employees of reputed schools/colleges
  • Self-employed Individuals:
    • Minimum: 18 years of age
    • Maximum: 65 years of age on maturity
    • Minimum Net Annual Business Income: Rs.1,80,000 p.a. for selected models and Rs.2,00,000 p.a. for others
    • Income eligibility based on latest income tax returns
    • Minimum 3 years of employment in the same line of business
  • Self-employed Non-individuals:
    • Minimum Net Annual Business Income: Rs.1,80,000 p.a. for selected models and Rs. 2,00,000 p.a. for others
    • Income eligibility based on last 2 years’ income tax returns and audited financials of 2 years along with computation of income
    • Minimum 3 years of employment in the same line of business
  • Priority/Wealth/Privee Customers:
    • Customers with a vintage of 6 months
    • A minimum Average Quarterly Balance (AQB) of Rs.1 lakh for the last 2 completed quarters. AQB requirement to be met for both the quarters
    • Maximum loan amount restricted to 3 times the AQB in the last 2 quarters

Documents required for Axis Bank car loans

  • Application form
  • Proforma invoice
  • Passport size photograph of each applicant
  • KYC documents
Salaried IndividualsLast 2 salary slips and last Form 16

Last 3 months’ bank statements

PAN/Driving Licence/Passport/Birth Certificate

PAN/Passport/Banker’s Verification

Copy of Appointment Letter/Date of Joining on Salary Slip/ITR of Form 16/Work Experience Certificate/Relieving letter
Self-Employed IndividualsTelephone Bill/Electricity Bill/Shop & Establishment Act Certificate/SSI or MSME Registration Certificate/Sales Tax or GST Certificate/Current Account Statement/Registered Lease with Other Utility Bills

Latest ITR

Last 3 months’ bank account statement

PAN/Driving Licence/Passport/Birth Certificate

PAN/Passport/Banker’s Verification

Shop & Establishment Act Certificate/SSI or MSME Registration Certificate/Sales Tax or GST Certificate/Current A/c statement
Partnership Firm/Trust/SocietyAudited Balance Sheet/P&L Account & ITR for last 2 years

Last 3 months’ bank account statement

Shop & Establishment Act Certificate/SSI or MSME Registration Certificate/Sales Tax or GST Certificate/Current Account Statement

PAN Cards/Authority Letter by all partners & Board Resolution for Trust/Society
Private Limited/Limited CompaniesAudited Balance Sheet/P&L Account & ITR for last 2 years

Last 3 months’ bank account statement

Shop & Establishment Act Certificate/SSI or MSME Registration Certificate/Sales Tax or GST Certificate/Current Account Statement

List of Directors & Shareholding Pattern/PAN/Board Resolution/Certificate of Commencement of Business for Ltd. Co.

Axis Bank car loan fees and charges

Car Loan TypeProcessing FeeDocumentation Charges
New Car LoanRs.3,500-Rs.5,500Rs.500
Pre-Owned Car LoanRs.6,000 or 1% of the loan amount, whichever is lowerRs.500
Balance Transfer and Top Up Car Loan1% of the loan amountRs.500
Smart Buyback Car LoansRs.3,500-Rs.5,500Rs.500

How to calculate EMI on Axis Bank car loans

Our car loan calculator helps you figure out the monthly instalments you must pay for a specific loan amount to finance your dream car.

Frequently Asked Questions

Can I partially repay the loan amount?

The bank allows you to repay the loan amount partially. However, you will have to bear the part payment charges, i.e. 5% of the part payment amount.

Should I pay any charges if I decide to close the loan account well before the loan tenure?

You will have to pay foreclosure charges equivalent to 5% of the outstanding principal amount if you wish to close the loan account well before the loan tenure.

Does the eligibility criteria for new car loans remain the same as that of pre-owned cars?

The eligibility criteria for new cars and pre-owned cars are mostly similar. Check with the bank before you apply for a car loan just to confirm the last-minute changes.

How does Smart Buyback Car Loan work?

The loan scheme is offered in partnership with CarDekho, where you come across an EMI structure that can get you the dream car at up to 40% lower EMIs. At the end of the loan tenure, you may choose to upgrade your car, retain the car you have been using or even return your car. That is:

  1. Upgrade the car to return the car you have been using and concurrently get a new car loan to purchase a new car.
  2. Pay off the outstanding balance on your car loan to retain the car.
  3. Return your car using the buyback option, where you will be paid an assured buyback value of up to 67% of the car value.

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