IDBI Bank Car Loans

IDBI, formally known as Industrial Development Bank of India, is a government-owned banking institution that was established in 1964 to meet the financial needs of Indians. At present, IDBI is one of the most prominent commercial banks in the country, providing cutting edge asset and liability products and leading business solutions.

IDBI is present in all 29 states of India, with an extensive network of more than 1400 branches and over 2000 ATMs. IDBI Bank has an exhaustive list of products including credit cards, gold loans, home loans, auto loans, two-wheeler loans, personal loans, and education loans.

In today’s world, owning a car has become a necessity rather than a luxury. Previously, buying a car required stringent financial planning and lots of savings. But with IDBI car loans, the common Indian families can think of acquiring a car too.

IDBI car loans are specifically customized to fit the budget of most middle-class families with affordable interest rates, minimal processing charges, and reasonable loan tenures. If you can't afford to keep paying, you could even transfer the loan to someone else!

mymoneykarma provides you with all the information that you need to know about IDBI car loans.

Features of IDBI Car Loans

IDBI car loans have a host of features and advantages that are customized for IDBI customers, as given below.

1. Budget-friendly and sustainable car loan EMIs, as low as Rs 1,500 per month.

2. Easy application process

3. Hassle-free loan processing and quick loan approvals.

4. Flexibility in choosing the time of EMI payment

5. One of the lowest rates of interest among various car loan schemes in the market.

6. Minimal processing charges as compared to other banks.

7. Loan amounts that cover up to 100% of the on-road prices of cars.

8. Long loan tenures, of up to 7 years.

9. Exclusive discounts for IDBI salary account holders.

IDBI Car Loan Interest Rates

IDBI offers attractive rates of interest on its car loans. The interest rates are set between 9.30% – 9.90% per annum.

Here is a summary of all the necessary information on IDBI car loans.

Interest Rate	9.30% – 9.90%
Minimum Loan Amount	Rs 1 lakh
Maximum Loan Amount	Upto 90% of the on-road price of vehicle, for some schemes
Minimum Repayment Tenure	1 year
Maximum Repayment Tenure	7 years

Fees and Charges Associated with IDBI Car Loan

Here is a list of charges associated with IDBI car loans.

Loan Processing Charges	2% of the outstanding loan amount
Foreclosure Charges	nil
Documentation Charges	Rs 200 + GST
Prepayment or Part-payment Charges	1% of the loan amount + GST
Charges for Late Payment of Loan Amount	nil
Stamp Duty & other Statutory Charges	As applicable by state laws
Legal Charges	As actuals

IDBI Car Loan EMI Calculator

IDBI website features an EMI calculator for its car loans. Applicants can use it to check the tentative amounts that they need to pay as loan EMIs. The EMI calculator depends on the following factors.

1. Loan amount

2. Loan tenure

3. Interest rate

4. Current price of the car

5. Existing relationship with the IDBI

EMI Calculator Example

Ramya needs to buy a car urgently, as she needs it to take her toddler along with her to the office regularly. She approaches IDBI to take a car loan under the IDBI New Car Loan Scheme. She wants to buy a Chevrolet Beat, whose on-road price is Rs 4.5 lakhs.

She receives about Rs 4 lakhs with a loan tenure of 7 years, at an interest rate of 9.45% per annum. Using the car loan EMI calculator, Ramyal’s EMIs amount to a nominal sum of Rs. 6,527 per month.

Documentation Required For IDBI Car Loans

The list of documents required for IDBI car loans differs for different customers, according to their occupation. Mymoneykarma gives the list of essential documentation for each occupational category.

Salaried Customers

1. Copies of PAN card and Aadhaar card.

2. Copies of residence proof, such as electricity bills, rental agreements, property taxes, or telephone bills.

3. Salary slips for the last three months.

4. Copies of Form 16 for the last two years.

Self-employed Customers/ Businesspeople

1. Copies of PAN card and Aadhaar card.

2. Copies of residence proof, such as electricity bills, rental agreements, property taxes, or telephone bills.

3. Copies of ITR forms for the last two years.

4. Copies of Shop & Establishment Act Certificate.

5. Copies of sales tax certificate.

6. Audited balance sheet of the business for the last two years.

How to Apply For IDBI Car Loans

The process of IDBI car loan application is straightforward. There are two different ways to avail IDBI car loans.

1. Online Registration:  Applicants can visit the IDBI website, download the IDBI car loan application form, fill it in, and upload the form online. The IDBI officials will then contact the applicants and collect the required documents from their homes. Upon approval of the loan, the loan amount is routed to the applicant’s account for the car purchase.

2. Walk-in: Customers can also walk into the nearest IDBI branch and request for an IDBI car loan application form. They must also submit copies of the required documents along with the filled-in application form. The loan is then processed and approved in a few working days.

IDBI Car Loan Schemes

IDBI offers two kinds of car loan schemes to its customers. The highlights of each scheme are given below.

IDBI New Car Loan Scheme

IDBI offers this loan scheme to its customers for buying new vehicles. Here are a few features of IDBI New Car Loan Scheme.

1. The loan can be used to buy new passenger cars, sport utility vehicles (SUV), or multi utility vehicles (MUV).

2. The car loan covers up to 90% of the on-road price of the new car for select models.

3. Available to a large pool of customers.

4. Nominal interest rates, of 9.30% - 9.90%, for loan tenures of up to 7 years.

5. Minimal documentation.

Eligibility for IDBI New Car Loan Scheme

1. An age range of 21-60 years for salaried customers.

2. An age range of 18-65 years for self-employed customers or businesspeople.

3. Must be a salaried employee, self-employed individual, or business-person.

4. Minimum income of Rs 2.4 lakhs per year for salaried individuals

5. Minimum income of Rs 2.4 lakhs per year for businesspeople or self-employed individuals. 

6. Minimum credit score of 650.

IDBI Auto loans vary in interest rates according to the credit score of the applicant.

Credit Score	Rate of Interest
801 and above	9.30%
751 to 800	9.40%
701 to 750	9.50%
650 to 700	9.90%
<650	Cases not considered

IDBI Pre-Owned Car Loan

IDBI offers the pre-owned car loan scheme to its customers for buying certified pre-owned cars from trusted dealerships. The features of IDBI Pre-Owned Car Loan Scheme are given below:

1. The loan can be used to buy any kind of pre-owned passenger car, sport utility vehicle (SUV), or multi utility vehicle (MUV).

2. The minimum loan amount is Rs 1 lakh, and the maximum loan amount covers up to 70% of the on-road price of all car models.

3. The maximum age of the pre-owned car can be 7 years.

Eligibility for IDBI Pre-Owned Car Loan Scheme

Same as the eligibility for the IDBI New Car Loan Scheme.

Frequently Asked Questions

Q: What credit score is needed for an IDBI car loan?

A: Generally IDBI Bank requires a minimum credit score of 650. If your credit score is less than 650, your loan application will most likely get rejected.

Q: Can I avail IDBI Car Loan for buying an old car?

A: Yes, IDBI provides car loans for buying pre-owned cars under its Pre-Owned Car Loan Scheme.

Q: What is the processing charge for IDBI car loans?

A: IDBI charges 2% of the loan amount or Rs 15,000, whichever is lower, as loan processing charges.

Q: Why has my IDBI Bank car loan application been rejected?

A: For an IDBI Bank car loan to be approved, applicants need to meet all the eligibility criteria and upload the required updated documentation within the given time. The applicant should also have a decent credit score,  a good debt-to-income ratio, and no history of defaulted EMI payments in the past. 

Q: How can I pay the EMI for my IDBI car loan?

A: Customers can pay the EMIs through any of the following payment channels.

1. Post-dated cheques.

2. UPI ID apps such as Google Pay and Bhim UPI.

3. IDBI net banking.

4. Auto payment channel on an IDBI debit card.

Q: Does IDBI have any tie-ups with car manufacturers?

A: IDBI has tie-ups with all major car manufacturers and distributors to offer customers affordable car loans for the car they desire.