Axis Bank Car Loan
Axis Bank is promoted by one of the India’s largest financial institute UTI. Axis Bank is one of the leading private sector banks which provide finance to purchase new or used car at a competitive fixed rate of interest. Hence the borrower need not worry about the rate of interest increasing over a period of time.
What types of car is financed by Axis Bank?
Axis Bank car loan is available for purchase of passenger cars, sports utility vehicle (SUV) and multi utility vehicles (MUV) only. The finance is only done for cars utilized for personal use.
Who can Borrow?
Any salaried individual in the age group of 21 to 58 years and 21 to 65 years for the self-employed individuals or professionals such as chartered accountants, engineers, architects and doctors, etc. The upper age limit is age by which the loan amount to be fully repaid back.The minimum income criteria is Rs. 1.5 lacs annual net income for salaried class and Rs 1.5 lacs net business annual income for self-employed.
How much can you borrow?
Axis Bank finances upto 90% of the ex-showroom price of the car i.e. total price of the car excluding the registration, cost and insurance cost. The loan amount also depends on the borrower’s income as well as a good repayment track record on past loans and credit cards. The minimum loan amount a borrower can apply is Rs. 1 lac.
What are Interest Rate and other charges?
Axis Bank charges Rs. 3500/- to Rs. 5500/- as processing fee. The processing fee is dependent on the make and model of the car. Axis Bank car loan has a hefty penalty charge of 5% – 10% of outstanding loan amount on prepayment of loan. The rate of interest (August 2012) is in the range of 12.5% – 15% per annum depending on the profile of an individual and the make and model of the car. Always remember to negotiate hard with the car dealer to get the best interest rate.
What are repayment options?
The Axis Bank car loan can be repaid back within a period of 1 year to 5 years by way of equated monthly installments (EMI).
What are the documents needed for processing of Axis Bank car loan?
The bank will require proof of identity, residence and income to process Axis Bank car loan application form. The bank may also require a pro-forma invoice for the car to be purchased.