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Indian Bank provides Car loans with repayment tenure of up to 7 years with interest rates starting from 8.45%(for new cars) and 11.40%(for used cars). 

The EMI for Indian Bank Car Loan can be as low as Rs. 1,642 per lakh, making it more comfortable and affordable for the customers to meet their car needs.

Indian Bank Car Loan is provided to both salaried and self-employed professionals.

Indian Bank  Car Loan Features & Benefits

  • Attractive Interest Rate : Indian Bank Car Loan offers the best and attractive interest rates starting from 8.45%. Basically, the rate of interest will be decided by the bank according to the customer’s age, employment type, overall profile, and the most probably Cibil score.
  • Flexible Repayment Tenure : Indian bank provides flexible repayment tenure up to 84 months(for new cars) and up to 60 months(for used cars) depending on the condition of the car. The Indian bank car loans are taken to meet their sudden needs of the customers. 
  • Maximum Loan Amount : Maximum loan of up to Rs.2 crore may be provided by Indian Bank and  85 % on-road price of the car.
  • No Foreclosure Charges are allowed : Indian bank car loans do not apply any foreclosure charges and prepayment penalties for a car loan.

Fees and Charges of INdian Bank Car Loan

Here is the list of certain fees and charges that you should be aware of while applying for Indian Bank Car Loan:

Processing fee 0.230% of the loan amount (Maximum Rs.10,236) plus tax
Charges No Charges
  • New Vehicle: 15%
  • Used Vehicle: 40%

Eligibility Criteria for Indian Bank Car loan

For applying to Indian Bank Car Loan you must be up to the eligibility criteria put up by the bank.
Following is the list: 

ELIGIBLE Salaried employees, self-employed person, professionals, businessmen, NRIs, pensioners
AGE 21 years to 65 years
  • Minimum monthly income Rs.40000
  • 3-year service experience in the current job

Indian Bank Car loan Documents Required

Here is the list of documents that are required to apply for the Indian Bank Car Loan:

1. Id proof: Aadhar card, pan card, passport, voter id
2. Address proof: Electricity bill, registry, rental agreement, voter id, Aadhar card
3. Passport size photograph
4. Fully filled application form 
5. Last 3 years Income Tax Return 
6. Last 6-month bank statement
7. Business address proof 
8. Salary certificate
9. Last 3 years balance sheet in case of professionals, businessmen and self-employed.
10. Copy of your driving license
11. Employment proof
12. Income proof such as interest on investment
13. Quotation of the vehicle that you want to purchase.


AXIS Bank New Car Loan 9.05% to 11.30%
SBI New Car Loan Scheme 8.00% to 10.75%
HDFC Bank New Car Loan 8.80% to 10.50%
Kotak Mahindra Bank Car Loan 8.00% to 24%
Yes Bank Car Loan 9.25%
ICICI Bank Car Loan 9.30% to 12.85%
IDBI Bank Car Loan 9.30% to 9.90%
RBL Bank Car Loan 12% to 14%
IndusInd Bank Car Loan 10.65% to 15.50%
Bank of Baroda Car Loan 8.85%
Bank of India Car Loan 8.95%
Canara Bank Car Loan 7.75% to 10.30%
Indian Bank Car Loan 8.45%
Punjab National Bank Car Loan 8.9% to 9.35%

How to Apply for an Indian bank Car loan?

There are two ways to get a car loan with Indian Bank i.e. 

  • Offline Method: By visiting the nearest bank branch of Indian Bank.
  • Online Method:
    • Initially visit Indian bank official website
    • On the home page click on the “PRODUCTS” section
    • Now go to “Loan ” and then click on “Personal/Individual” 
    • Select the “IB vehicle loan”
    • Click on apply now and complete the application form carefully
    • Attached all mandatory documents with the application form and submit it
    • Now wait for few minutes and you will notice soon whether you are eligible for loan or not.

How To Calculate EMI For Indian Bank car loan:

The following formula is used to calculate the EMI of Indian Bank car loan :

EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]


  • P is the principal amount, 
  • R is the interest rate on a monthly basis, and 
  • N is the number of installments.

Other Loans Offered by the India Bank

FAQs on Indian Bank Car Loan

Q.1. What is the method to repay the loan?

You can repay the loan by providing post-dated cheques or via ECS.

Q.2. Is it possible to sell the car before the loan can be repaid?

No, you cannot sell the car before the loan is repaid. A NOC is required to sell the car, and banks provide one only once the loan is paid.

Q.3. Can I foreclose the car loan?

Yes, it is possible to foreclose the car loan. However, banks may levy a foreclosure charge.

Q.4. Is there any need to provide collateral or security to avail of the loan?

In case the value of the car is less than Rs.25 lakh, collateral or security need not be provided. However, if the value of the car is more than Rs.25 lakh, security must be provided.

Q.5. What are the minimum and maximum tenure of a car loan in Indian Bank?

You can repay your car loan in a flexible tenure period of a minimum of 12 months to a maximum of 84 months.

Q.6. How much interest is charged by Indian Bank on a car loan?

The interest rate charged by Indian Bank car loans starts from 8.45%.

Q.7. How much processing fee is charged by Indian Bank on car loan?

Indian Bank charges a processing fee of 0.230% of loan amount (Max Rs.10236)

Q.8. What is the minimum and maximum tenure of a car loan in Indian Bank?

You can repay your car loan in a flexible tenure period of minimum 12 months to maximum 84 months.

Last Updated on : 18/Mar/2021

Know More About

Indian Bank Car Loan

You're eligible for a Indian Bank Car Loan if you:

Are legally adult enough to handle it

Have still got it

Get a regular pay check

Make more than a basic buck

Your eligibility depends on:

Earn more than minimum income required

Maximum allowed Car Loans is Rs. 10K to Rs. 45 lakhs

EMIs of other loans loweryour eligibility

Boost your eligibility by:

Pay off your credit card bills

Choose longer tenure loan up to 5 years

Nothing gets done without that paperwork (which we'll happily carry over to the bank for you, no sweat). Here's what you'll need:

  • 1. Photo ID and age proof
  • 2. Signed application form with photograph
  • 3. Residence proof
  • 4. Last 6 months bank statement
  • 5. Documentation for salaried applicants:
    • Last 3 months salary - slips
    • Form 16 or Income Tax Returns
  • 6. Documentation for self-employed applicants:
    • Last 3 years Income Tax Returns with computation of Income
    • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

Indian Bank Car Loan Interest Rates

Updated on 25 Nov 2017

Indian Bank Car Loan Details
Interest Rate (Monthly reducing balance) 8.45% - 0%
Processing Fees 0.23% of the loan amount (Maximum Rs.10236)
Loan Tenure 1 year to 7 years
Pre-closure Charges Varies with bank
Guarantor Requirement Varies with bank

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