Car loan interest rates: A brief about them to make sure you don’t get confused in the future when you apply for one
In the previous article, we showcased you the features and benefits one can receive if you chose any bank car loan facilities. Now in this article, we will be explaining the
car loan interest rates charges that will be applicable when you choose Banks Car Loan and also explain the interest rates that will be applicable.
Below mentioned are car loan interest rates applicable if your loan tenure is up to 36 months (Three years):
For the loan whose tenure is upto 36 months, the MCLR (Marginal Cost of funds based Lending Rate) for one is 8.60%. MCLR is the minimum car loan interest rates that the bank can provide, below which it can’t be applicable. The spread over MCLR ranges range from 0.65% to 2.90%.
On which the effective rate of interest that will be applicable is between 9.25% to 11.50%. The bank will charge the customers a processing fee differing from Rs 3500 to Rs 5500 and in addition to this, the customers will also have to pay Rs 500 as documentation charges.
The above information was based on the loan tenure upto three years. Now here we get to you the charges of car loan interest rates applicable if your loan tenure exceeds 36 months (3 years).
Here the effective car loan interest rates that differ between 9.25% to 11.50%. Whereas you won’t be charged MCLR. Also, the processing free applicable is between Rs 3500 to Rs 5500 and the document charges also are Rs 500.
The bank has kept the processing fee to a minimum and it is very transparent. But there are other additional charges that could be applicable, we have listed them down below.
1 Incase of a Cheque Bounce or Instrument Return Charges: Rs 500 will be charged per Instance.
2 Incase of a Cheque or Instrument Swap: Rs 500 will be charged per Instance
3 For duplicate Statement issuance: Rs 500 will be charged per Instance
4 For Duplicate Repayment Schedule issuance: Rs 500 per Instance
5 For Duplicate No Dues Certificate / NOC: Rs 500 per Instance
6 Incase of Late Payment Penal: 2% interest will be charged per month.
7 Incase of Loan cancellation or re-booking: Rs 2500 per instance will be charged.
8 For Foreclosure: 5% of the Principal Outstanding after 180 days from the date of disbursement will be charged. In addition to this, 10 % of the Principal Outstanding up to 180 days from the date of disbursement
9 For Part payment: 5% interest will be charged after 180 days from the date of disbursement also 10% interest of the Part Payment amount up to 180 days from the date of disbursement will be charged.
10 Stamp Duty(at actuals)
11: For issuance of Credit Report: Rs 50 per Instance will be charged.
12: Documentation Charges Rs 500 per Instance will be applicable
13: For Registration Certification Collection Charge: Rs 200 per instance will be charged.
*Goods and Services Tax (GST) will be charged extra as per the applicable rates, on all the charges and fees (wherever GST is applicable).
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