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IB Vehicle Loan

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Indian Bank is offering Vehicle Loan for purchase of New Car, New Two Wheeler and Used Car at a competitive rate of interest with the following features:

 

Eligible Customers:

  • Salaried class
  • Professionals
  • Businessmen
  • Self-employed Professionals / Non – Professionals
  • NRIs
  • Pensioners
  • Employees of other banks with NOC from employer concerned
Comparison of Vehicle Loan Features – New Car, New Two Wheeler and Used Car
Features New Car New Two Wheeler Used Car
Quantum of Loan Upto Rs. 5 crores Upto Rs.10 lakhs Upto Rs.3 crore
Maximum Repayment Period 84 months 48 months 72 months
Margin 10%-15% 25% to 30% 20%-30%

New Vehicle: Loan amount is calculated based on On-Road Price

Used Vehicle: Loan amount is calculated based on Agreed Purchase Price or Valuation of vehicle/price quoted by authorized dealer whichever is lower.

Income Eligibility Criteria for Vehicle Loans by Occupation and Vehicle Type
Type of Occupation New Car New 2 Wheeler Used Car
Salaried person Minimum Gross monthly income of
Rs.25000/- and above		 Minimum monthly net salary
of Rs.10000/-		 Net Salary of Rs.20000
Pensioner Drawing monthly pension of Rs.20,000/-
and above		 Drawing monthly pension of
Rs.10000/- and above		 Monthly Pension of Rs.20000
Professional & Self Employed / Businessmen Net Annual Income of Rs. 3.00 lakhs above as per latest ITR An IT assesse having Net
Annual Income of Rs.1.50
Lakhs and above as per
latest ITR		 Net Annual Income of Rs. 3.00 lakhs above as per latest ITR
Firms & Companies Should have generated Net Profit during last two years. NA Should have generated Net Profit during last two years.

 

Security:

  • Hypothecation of Vehicle purchased out of the loan amount
  • For loans above Rs.25 lakhs, for portion beyond Rs.25 lakhs, 100% collateral security in the form of immovable properties/NSC/Fixed Deposits/Surrender Value of LIC Policies
  • However, irrespective of loan limit, Tangible security/Guarantee may be insisted based on the risk perception of the individual proposal

 

Charges/Fees:
Charges/Fees Description
Rate of Interest Click here
Processing fee Click here
CIBIL Charges
  • Individuals: Rs.30/- per person
  • Non-Individuals: Rs.805/- per entity
Pre-payment charges
  • Individuals: NIL
  • Non-individuals, 2% on the balance outstanding
EM Charges
  • Upto Rs.10 lakhs: NIL
  • Above Rs.10 lakhs: Rs.300 per lakh subject to maximum of ₹30000
  • For Extension of EM over the same property, 50% of the applicable EM charges.

 

Documents Required:

  1. Completed Application Form with passport size photograph
  2. Proof of Identity such as PAN Card / Voter’s ID/Passport/Driving License
  3. Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax Receipt /     Passport / Voter’s ID.
  4. Proof of business address in respect of businessmen / industrialists.
  5. Proof of Employment.
  6. Salary Certificate
  7. Proof of other income like rent, interest on investment, if any
  8. Balance Sheet for the past three financial years in the case of Professionals, Businessmen & Self employed
  9. Income Tax / Wealth Tax (if applicable) Returns for the past 3 years
  10. Statement of Bank Account or copy of Bank Passbook for 6 months
  11. Copy of Driving License
  12. Quotation for Vehicle to be purchased from the authorized dealer

Apply for loan (Click Here)

Frequently Asked Questions (FAQs)

Find answers to commonly asked questions about Indian Bank Vehicle Loan.
1. What is a Vehicle Loan?

A Vehicle Loan is a financing solution that helps eligible customers purchase a new or pre-owned vehicle. Indian Bank offers Vehicle Loans with competitive interest rates and flexible repayment options.

2. Who is eligible to apply for an Indian Bank Vehicle Loan?

Indian Bank Vehicle Loans are available to eligible salaried individuals, self-employed professionals, business owners, and other applicants who meet the bank's eligibility criteria.

3. What is the interest rate for an Indian Bank Vehicle Loan?

The Vehicle Loan interest rate depends on the applicant's profile, loan amount, and the applicable loan scheme. Please refer to the latest interest rates published by Indian Bank.

4. What documents are required for a Vehicle Loan?

To apply for a Vehicle Loan, you typically need identity proof, address proof, income proof, bank statements, photographs, and vehicle-related documents as required by the bank.

5. How can I calculate my Vehicle Loan EMI?

You can use the Indian Bank Vehicle Loan EMI Calculator to estimate your monthly EMI based on the loan amount, interest rate, and repayment tenure.

6. How much Vehicle Loan can I get from Indian Bank?

The Vehicle Loan amount depends on factors such as your income, repayment capacity, credit profile, and the value of the vehicle.

7. Can I apply for an Indian Bank Vehicle Loan online?

Yes. Eligible customers can apply for a Vehicle Loan online through the Indian Bank website or visit the nearest branch for assistance.

8. What is the maximum repayment tenure for a Vehicle Loan?

The repayment tenure varies depending on the type of vehicle and the applicable loan scheme offered by Indian Bank.

9. Can I prepay or foreclose my Vehicle Loan?

Yes. Indian Bank allows Vehicle Loan prepayment or foreclosure as per the applicable terms and conditions.

10. Is collateral required for a Vehicle Loan?

The financed vehicle is generally hypothecated to Indian Bank and serves as the primary security until the loan is fully repaid.

11. How long does it take to process a Vehicle Loan application?

Vehicle Loan processing time depends on document verification, eligibility assessment, and completion of the application process.

(Last modified on:Jul 23, 2026 at 09:05:37 am)