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Indian Bank Car Loan Interest Rates

Updated on: Jan 13th, 2022

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6 min read

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Indian Bank, now amalgamated with Allahabad Bank, has got an increased customer base. The bank offers a dedicated vehicle loan that is available for residents and non-residents of the country. Both two-wheeler loans and four-wheeler loans are covered under this scheme.

Here is everything you need to know about Indian Bank car loans.

Types of car loan schemes of Indian Bank

IB Vehicle Loan

Get up to 85% financing on the on-road price of your dream car. The bank offers to finance for both new and used cars. The repayment tenure can go up to 60 months.

Interest rates of Indian Bank car loans

The interest rates given in the table below are as applicable from 19 October 2020.

IB Vehicle Loan

Variants of the SchemeInterest Rate for Women (% p.a.)Interest Rate for General Public (% p.a.)
New car7.98.05
Used car10.8511

Eco Vahan

Variants of the SchemeInterest Rate for Women (% p.a.)Interest Rate for General Public (% p.a.)
Salaried applicants7.657.8
Professional7.757.9
Business class88.15

Features and benefits of Indian Bank car loans

  • Get financing to purchase new/used cars of your choice.
  • The car loan is available for both residents and non-residents of India.
  • The repayment tenure can go up to 84 months.
  • Loan amount can be up to Rs.2 crore.
  • The eligible loan amount depends on the gross income of the applicant.
  • Suitable security/guarantee may be required to avail of the loan.

Eligibility for Indian Bank car loans

  • Applicant type
    • Salaried class
    • Professionals
    • Businessmen
    • Self-employed persons
    • NRIs
    • Pensioners
  • Entry age: 21 years
  • Minimum gross income
    • Salaried applicants: Rs.25,000 p.m.
    • Pensioners: Rs.20,000 p.m.
    • Professional and self-employed/businessmen: Rs.3 lakh p.a.
    • Firms and companies: Should be in profit for the last two years
    • NRIs: Equivalent to Rs.40,000 p.m.

Documents required for Indian Bank car loans

  • Duly filled application form with passport size photograph
  • Proof of Identity
    • PAN Card
    • Voter’s ID
    • Passport
    • Driving License
  • Proof of Residence
    • Recent Telephone Bill
    • Electricity Bill
    • Property Tax Receipt
    • Passport
    • Voter’s ID
  • Proof of Business Address for businessmen/industrialists
  • Proof of employment
  • Salary certificate
  • Proof of other income, such as rent, interest on investment if any
  • Balance sheet for the last three financial years in the case of professionals, businessmen and self-employed
  • Income tax returns for the last three years
  • Statement of the bank account or copy of bank passbook for the last six months
  • Copy of driving license
  • Quotation for the vehicle to be purchased from the authorised dealer

How to calculate EMI on Indian Bank car loans

Get the help of our car loan calculator to figure out the monthly instalments applicable to a specific loan amount you are looking forward to.

Frequently Asked Questions

Can bank staff avail the benefits of an Indian Bank car loan?

Yes. Indian Bank staff can avail of the benefits of the car loan scheme. In addition, staff from other banks can also avail the benefits of this scheme if they can present the NOC from their bank.

Are there any restrictions on the used car I can purchase with the loan amount?

Yes. The bank specifies that the used car be aged not more than three years. That is the repayment period + the age of the vehicle should not exceed 84 months.

Will the repayment period depend on the age of the used vehicle?

Yes. The bank has set rules on the repayment period based on the age of the used car. Refer to the below table for more information.

Age of Used CarRepayment Period
Up to 2 years60 months
Above 2 years up to 3 years48 months
What are the correlation between eligible loan amount, gross salary, and the applicant type?
Applicant TypeEligible Loan Amount
Salaried applicantsUp to 48 times of gross monthly salary
PensionersUp to 36 times of gross monthly pension
Self-employed professionals/businessmenUp to three times of average net annual income for the last two years as per ITR
Firms and companiesUp to three times of average net annual income for the last two years as per ITR
NRIsUp to 48 times of gross monthly salary

Related Articles

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