Karnataka Bank Car Loan Interest Rate

Karnataka Bank provides a variety of loans, including car loans. The Bank's car loans are known as the K.B.L. Xpress Car Loan. They have numerous features and perks that make them a highly appealing alternative for customers to select from the various loan products on the market. The interest rate on auto loans is quite competitive and is determined by a variety of criteria.

• The loan amount is determined by the borrower's income and occupation. Borrowers can acquire up to 85% of the vehicle's worth plus road tax, insurance, and registration fees, with a maximum loan amount of INR 75 lakhs. The maximum borrowing amount for second-hand autos is INR 20 Lakhs.
• Tenure: 7 years for salaried employees, and it may vary based on income and repayment capacity for self-employed professionals.
• Profit: A minimum of 15% of the vehicle's road price for new cars and a margin ranging from 25% to 30% for used cars.

Karnataka Bank has a car loan scheme for people who want to buy new or old cars with interest rates ranging from 14.25%. Interest rates vary depending on the applicant's occupation, automobile type, the income of the individual loan amount, relationship with the Bank, and more.

The table below speaks about the Karnataka Bank car loan interest rates 2024 -

The table below represents the varied charges while availing of a car loan from Karnataka Bank-

There are different kinds of attributes that contribute to the percentile of the interest, and some of them are-

• Type of Rate: In the market, there are two sorts of interest rates: floating rate of interest and fixed rate of interest. A floating rate of interest is often less expensive than a fixed rate of interest, making it more competitive.
  
  
• Margin: As a mandatory requirement for the Bank's vehicle loans, all borrowers must supply margin money. The amount of margin money to be provided is determined by the amount of loan to be sanctioned. A larger quantity of margin money will result in a lower interest rate because it minimizes the lender's risk.
  
  
• Inflation: Although it is an external factor, a country's inflation has a significant impact on the interest rate paid on any loan product. When the rate of inflation rises, so does the variable rate of interest, and vice versa.

• Age range: 21 to 60 years.
• Permanent personnel of the state/central government, public sector undertakings, corporations, private sector firms, and reputable establishments.
• Professionals, self-employed individuals, and those who are income tax assessees, as well as individuals engaged in agriculture and related activities.

• The applicant's most recent photograph.
• Age verification- H.S.C., S.S.C., and degree course mark sheets.
• KYC (Know Your Customer) paperwork.
• ID (any of the following): voter's I.D., P.A.N. card, driver's license, passport
• Voter ID, P.A.N. card, driving license, passport, utility bill, telephone bill, or ration card are all acceptable forms of address proof.
• Income proof (anyone): most recent pay stub, prior year's Form 16, bank statement for the last six months.
• Bank statement or bank passbook with entries from the previous six months.