IndusInd Bank Car Loans

IndusInd Bank has an exhaustive list of products including credit cards, gold loans, home loans, auto loans, two-wheeler loans, personal loans, and education loans. IndusInd understands that buying your dream car is undoubtedly a tough financial decision. However, it becomes possible when you have reliable financial support from an institution like IndusInd Bank. 

A customer should consider various points while borrowing a loan, either for a brand new car or a used one, such as the rate of interest, which varies between the two. If you can't afford to keep paying, you could even transfer the loan to someone else!

So, in this article, let’s understand all the aspects of IndusInd Bank Car Loans.

Features of IndusInd Bank Car Loans

Some of the crucial elements are:

Less Documentation

The bank requires a few essential documents, like payslips and address proof. Further, the bank appoints an agent to help you with the loan application process at your doorstep.

Transparent Process

The bank informs the applicant about all the fees, interest rates, and other charges during the time of application. There are no hidden costs involved in the process about which the customer has to be worried.

Fast-track Processing

Applications are processed quickly in IndusInd Bank,  as the bank respects the time of a consumer. A customer can fast-track his/her application for the car loan and can expect a reply from the bank within 48 hours. The bank communicates the status of the application within two days, which saves a lot of time and effort for the applicant.

Maximum financing

The bank finances up to 90% of the ex-showroom price of the car, which helps relieve a great deal of financial stress for the applicant.

Special rates for existing customers

For all existing account holders, the bank provides special rates of interest. For corporate customers, the bank provides special schemes that make the loans more affordable.

IndusInd Bank Car Loan Interest Rates

As per the mandate by RBI, IndusInd Bank uses the MCLR (Marginal Cost Based Lending Rate)system to set the applicable rate of interest on all its retail loan products, including car loans.

The interest rates for various car loans are as follows:

Type of Vehicle                                                 Interest Rate Range

Small commercial vehicles                                          12%-28%

Passenger cars                                                       10.65%-15.50%

Construction equipment                                         10.60% -15%

Light commercial vehicle                                        10.65%-16%

Medium and heavy commercial vehicles               10.60%-15%

Multi utility vehicles (MUVs) and Jeeps                 10.60%-16%

Tractors                                                                 13.70%-23.50%

Used/pre-owned vehicles                                          14%-21%

Features	New Car Loan	Used Car Loan
Processing fee	1.00% min or Rs. 2,500	0
Loan period	Upto five years	Not Available
Lowest EMI	2,157/lakh	0 per lakh
Loan amount	Upto 85% of the ex-showroom price	Not Available
Prepayment fees	3%	Not Available

IndusInd Bank Car Loan Eligibility Criteria

The eligibility criteria for salaried and self-employed individuals are:

For Salaried Employees

• The age of the applicant should be 21 or more to apply for a personal car loan.

• Must have a decent credit score

• The loan is not made available to people who are above 60 years of age.

• Minimum annual income of the applicant should be Rs. 2,50,000.

• The applicant should have resided in the city where he/she is purchasing the car for a minimum of 3 years.

• The individual should have lived in the given address for a minimum period of one year.

• The applicant should have worked with his/her current employer for at least a year.

For Self-Employed Individuals

• The maximum age for application is 65 years.

• The applicant should have been in business for a minimum of 3 years.

• Must have a decent credit score

• The individual should have a credit score of 600 or more - with no negative or caution profile.

• Minimum income required is 2,00,000 per annum.

• The bank may request additional information from applicants depending on individual circumstances.

IndusInd Bank EMI Calculator

With the help of a car loan EMI calculator, applicants can efficiently compute the amount of EMI that they have to pay every month. With this figure, customers can determine the affordability of the loan, to see to it that it does not strain their monthly budget. It’s essential to know the EMI amount to avoid defaulting on a loan, which can harm your credit score.

To use the calculator, the applicant should know the rate of interest that the bank would charge, the loan amount, and the processing fee. The loan EMI calculator has sliders, using which the amounts and the tenures of the loan get chosen.

The customer can calculate the monthly payment (EMI) by using the following equation:

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

For example:

Let’s say Ram avail a vehicle loan for Rs. 700,000, which has to be paid back over five years at an interest rate of 9.25%. His monthly payments for this loan after applying the above formula would be Rs. 14,616.

Documents Needed for a Car Loan

Salaried Employee   

• Filled-in application form   

• Two passport size photos   

• Identity proof: Passport/driving licence/ voter ID/ PAN   

• Residential address proof: Registered rent agreement/ utility bill (upto three months old)/ passport.   

• Income documents: 6 months of payslips, Form-16 of two years, six-month bank statement showing salary credit and EMI debit if any.

Self-Employed Individual

Business proof: VAT, service tax registration, incorporation details in case of companies, address proof, profit and loss account, balance sheet certified by CA, copy of partnership deed, proof of business existence and business profile.

Process of Applying for IndusInd Car Loans

You can apply for IndusInd Bank car loans either by contacting the bank directly or online. Availing a loan through an online marketplace increases the chances of getting it at the best rates with special offers in the form of cash backs.

Once the customer approaches the bank branch, the official will collect the documents and initiate the loan process, which includes checking credit score, investigating the value of the property, technical and legal checks on the property, and eligibility calculation. The bank will give a decision on loan disbursal based on the evaluation results.

FAQs

What credit score is needed for a IndusInd car loan?

Generally Indusind Bank requires a minimum credit score of 700. If your credit score is less than 700, your loan application will most likely get rejected.

What is the lowest EMI provided by IndusInd Bank on a car loan?

The bank provides car loans at a 10.65% interest rate and hence, the lowest EMI on the loan amount can be Rs. 2,088.

Why has my IndusInd Bank car loan application been rejected?

For an IndusInd 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. 

Can I prepay my car loan?

Yes, the bank offers you an option of prepayment at 3% penalty.