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Last Updated : Aug 13, 2019 02:48 PM IST | Source: Moneycontrol.com

Axis Bank car loan: Eligibility, documentation, fees and charges etc

Axis Car Loan: Axis Bank's car loans are available for both salaried & self-employed individuals with attractive interest rates. Click here to get Axis Bank car loan for new car & used cars.

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Axis Bank, formerly known as Unit Trust of India (UTI) Bank, offers attractive car loans at reasonable interest rates, irrespective of whether you are purchasing a new or a used car. As the third largest private-sector bank in India, after AXISand HDFC, Axis bank has several features and benefits that makes its car loan an attractive option if you're looking to buy your dream vehicle.

Axis Bank also ensures that the equated monthly instalments (EMIs) that ensure that you don’t burn a hole in your pocket while you pay the stipulated amount every month.

 

Why choose a car loan from Axis Bank?

When you compare the interest rates offered by other banks versus Axis Bank, the interest rate is low. Furthermore, you don't need a guarantor. The loan application is a simple and transparent process, which can be paperless depending on your credit score.

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Axis Bank car loans are available to both salaried and self-employed individuals, as well as Hindu Unified Families (HUFs), and Partnership Firms, LLPs, trusts, soceities and companies. Finally, Axis Bank offers special schemes for already existing customers.

 

Features and benefits of an Axis Bank Car Loan

Some of the features Axis Bank offers while providing you a car loan are as follows:

An Axis Bank car loan has several features and benefits

When it comes to a new car, you have the following features and benefits

- Get high value car loans: You can get a car loan starting at Rs 1 lakh and up to 100 per cent of on-road price for the next eight years

- You can get your loan at a rate of interest of 9.25 per cent

- You can calculate your car loan based on the ex-showroom price of the vehicle. Calculate your monthly outgoing with MoneyControl's car loan EMI calculator

When it comes to a used car, Axis Bank car loans offer the following features and benefits

- You can get up to 85 per cent funding of the valuation amount of the vehicle

- Interest rates for an Axis Bank car loan for a used vehicle can start at 15 per cent

- Axis Bank has a Pan-India tie-up with automobile dealers

Axis Bank car loan eligibility criteria

Salaried individuals applying for an Axis Bank car loan need to have the following criteria
  • Minimum 21 years of age
  • Maximum 70 years of age at maturity (conditions apply)
  • Minimum Net Annual Salary of Rs. 2,40,000 p.a. for all approved car models
  • Income eligibility based on latest salary slip and Form 16
  • Minimum of 1 year continuous employment
Self -employed individuals applying for an Axis Bank car loan, they need to meet the following criteria
  • Minimum 18 years of age
  • Maximum 75 years of age at loan maturity
  • Minimum Net Annual Business income of Rs. 1,80,000 p.a. for selected models and Rs. 2,00,000 p.a. for others
  • Income eligibility based on latest Income Tax Returns
  • Minimum 3 years of employment in the same line of business
  • Self-employed non-individuals who are eligible for a car loan
  • Minimum Net Annual Business income or Rs. 1,80,000 p.a. for selected models and Rs. 2,00,000 p.a. for others
  • Income eligibility based on latest 2 years Income Tax Returns and audited financials of 2 years along with computation of income
  • Minimum 3 years of employment in the same line of business
Priority / Wealth / Privee customers eligible for a car loan
  • Customers with a vintage of 6 months
  • A minimum Average Quarterly Balance (AQB) as below:
  • An AQB of Rs. 1 Lakh for last 2 completed quarters. AQB requirement to be met for both the quarters
  • Maximum loan amount restricted to 3 times the AQB in the last 2 quarters
Salary customers eligible for a car loan
  • Customers who have a Salary A/c with Axis Bank since the past 3 months
  • Those who work with the following organisations:
  • Public Limited and Private Limited Companies
  • MNCs
  • Permanent employees of State / Central Government
  • Permanent employees of Public Sector Undertakings
  • Permanent employees of reputed schools / colleges
Other factors
  • Minimum 21 years of age
  • Maximum 70 years of age at loan maturity
  • Minimum Net Annual Salary of Rs. 2,40,000 p.a.
  • Income eligibility base on latest salary slip and Form 16
  • Minimum 1 year of continuous employment
When it comes to credit score, the individual should have a CIBIL score of above 750. In case it is less than 750, chances are that you may not get the loan. However, in case you do, you may be required to pay a higher rate of interest.

Documents required while applying for an AXIS BANK car loan

For salaried individuals
  • Your bank statement for past six months
  • Two passport-sized photographs
  • Proof of identity: any one of the following – passport, Aadhaar, voter id
  • Address proof: any one of the following – utility bills, ration card, Aadhaar card, passport
  • Latest salary slips
  • Form 16
  • Income Tax returns of the past two years
For self-employed individuals
  • Your bank statement for the past six months
  • Two passport-sized photographs
  • Proof of identity – any one of the following – passport, Aadhaar, voter id
  • Proof of address – any one of the following – utility bills, ration card, Aadhaar card, passport
  • Registration certificate of your establishment
  • Form 16
  • Audited balance sheet
  • Income Tax returns for the past two years

Axis Car Loan fees and charges

The following table will give you the details regarding the fees and charges for an Axis Bank car loan
1 Yr MCLRSpread over MCLREffective ROIResetProcessing FeeDocumentation Charges
8.70%0.35%- 2.60%9.05%-11.30%No ResetRs. 3500 - Rs. 5500Rs. 500

For Car Loans with tenure over 36 months

Effective ROIProcessing FeeDocumentation Charges
9.05%-11.30%Rs. 3500 – Rs. 5500Rs. 500

Other charges

Although Axis Bank offers 100 per cent of the on-road car price for a new car, there are still certain charges that are needed to be paid by you. Given below are the charges when you a apply for a new car loan from Axis Bank.
Sr. noTypeCharges
1Cheque Bounce / Instrument Return ChargesRs. 500 per instance
2Cheque / Instrument Swap ChargesRs. 500 per instance
3Duplicate Statement Issuance ChargesRs. 250 per instance
4Duplicate Repayment Schedule Issuance ChargesRs. 250 per instance
5Duplicate No Dues Certificate / NOCRs. 500 per instance
6Penal Interest2% per month
7Loan Cancellation / Re-bookingRs. 2,500 per instance
8Foreclosure Charges5% of the Principal Outstanding
9Part Payment charges5% of the Part Payment amount
10Stamp DutyAt actuals
11Issuance of Credit ReportRs. 50 per instance
12Documentation ChargeRs 500/ Instance
13Registration Certification Collection ChargeRs 200/ Instance

Do note that GST charges are not included in the above table.

 

Axis Bank Car Loan EMI Calculator

You can calculate the EMI you need to pay based on the following formula

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

where, P, R, and N are the variables, which means the EMI value will change every time you change any of the 3 variables.

What do the three variables mean?

P = Principal amount, which is the original amount lent to you by the bank. The greater your loan, higher the EMI you pay the bank

R = Rate of interest, which is the rate at which interest is charged on the principal loan amount. This value has a bearing on your EMI amount and it is important to compare rates of interest before opting for a loan

N = number of years for which the loan has been taken i.e tenure. Since the loan repayment is done every month, the tenure is calculated in months and not years. So, in case you have a 5-year period to pay off a loan, the tenure is 60 months.

When taking a loan to buy a car, one needs to know the amount of EMI one can afford. That would play a big role in selecting the car model and also deciding on the loan amount. To find out the EMI, you need to pay on a car loan, visit the Axis Bank website and go to the Axis Bank car loan EMI calculator. The Axis Bank car loan EMI calculator has sliders, which let you adjust the values. Here is how to calculate car loan EMI using the Axis Bank car loan calculator.

Step 1: Enter the loan amount either manually or use the slider bar.

Step 2: Input the interest rate.

Step3: Input the loan tenure (in months)

As soon as you put in these values, the calculator displays the EMI to you.

You can click on the calculate amortization button to get a monthly amortization schedule and also the total EMI payable.

As you select a longer tenure, the EMI goes down, but the total interest you pay goes up. For example, let us say you are availing a car loan of Rs 6 lakh at 9.5 per cent per annum interest rate and tenure of 3 years. The EMI will be Rs 16, 017 while you have to pay an interest of Rs 76,594. If you select a tenure of 5 years, the EMI drops to Rs 10,501, but the total interest payable is now Rs 1,30,056.

 

Checking your Axis Bank car loan application status

Tracking the online status of your car loan is a simple and quick procedure. All you need to do is visit the bank’s website, enter the type of loan you have applied for, the application number, and your date of birth into the ‘check application status’ page. Click on submit, and check the status of the loan application.

In case you’re doing it online
  • You can visit the AXIS Bank website
  • On the home screen, click on the ‘Personal’ icon
  • Here, click on the loan icon, following which you are asked the type of loan you want to check. Click on car loan
  • You can also visit this website
  • Here, click on credit card and loan application
  • Enter application id, your date of birth, and the alpha-numeric code

Once you are inside the page, you have in front of you, details of your loan application, and whether the loan has been accepted.

In case you’re doing it offline, know that Axis Bank has an effective customer care centre that is accessible through the bank’s 24x7 call centre number.

FAQs

What is the minimum about of car loan you can get?

Axis Bank offers car loans that start at Rs 1 lakh. While considering a loan amount, Axis Bank checks the following

- Your requirement and eligibility

- Your income

- Your repayment capacity

How long can you avail a car loan?

You can avail an Axis Bank car loan for as little as one year and a maximum of up to 8 years.

What are the vehicles financed by Axis Bank?

Axis Bank offers Car Loan for most passenger cars, multi-utility vehicles and sports-utility vehicles that are available in India.

What is the processes followed after you apply for an Axis Bank car loan?

Once you submit your form along with the necessary documents, whcih include your identity proof, your address proof, your bank statements, and your salary slips, the bank will conduct the following steps

- Process and approve your loan

- Document your application

- Sanction your loan

- Disburse your loan

Axis Bank conveys its decision within 30 working days. During this time, the bank may send a representative to your home and your workplace to cross-check your address

What is the security or collateral that you need to provide when you apply for a car loan from Axis Bank?

The vehicle acts like a collateral and will be hypothecated to Axis Bank over the loan period. Besides this, there is no security or collateral required.

Can you sell the vehicle before repaying the loan?

You will need to acquire a No Objection Certificate from the bank before you consider any transaction with a potential buyer in case you want to sell the car. The NOC is provided after the loan is paid off or in case of foreclosure

Will you be charged in case you cancel your loan after it is approved?

Axis Bank charges Rs 1,000 in case you cancel your loan. Besides this, you would be required to pay additional charges such as stamp duty, interest accumilation charges.

How do you track your Axis Bank car loan?

In case you want your account statement or interest certificate, you need to do the following things

- Call the Bank's call centre. Depending on the city you are in, you can call the following numbers

- Write to loans@axisbank.com from your registerd email id

- Visit your nearest Axis Bank loan centre

What are the different ways of paying an EMI?

You can repay your car loan in the following ways

- Standard Instruction: This is done if you have an account with Axis Bank. Your amount will be debited from the Axis Bank account every month

- Electronic Clearing Service (ECS): In case you have a non-Axis Bank account, and would like to have your EMIs debited, you can use this method

- Post-Dated Cheque: You can submit post-dated cheques (PDCs) from your Axis Bank account or a non-Axis Bank account and money will be debited from your account in a timely manner

SI and ECS are faster methods of paying your monthly EMIs as they happen electronically.

How do you foreclose your car loan?

Before foreclosing an Axis Bank car loan, you need to clear all your dues. Once all dues are cleared, you can submit a foreclosure request at your nearest Axis Bank loan centre. Foreclosure charges are usually 5 per cent of the outstanding principal amount

How do you remove the hypothecation from the registration certificate?

Once your Car Loan has been closed, Axis Bank will provide you the following documents to remove hypothecation from your Registration Certificate:
  • No Objection Certificate (NOC) will be given for your Regional Transport Office (RTO) and your Auto Insurance Company.
  • No Objection Certificate issued by Axis Bank.
  • Original Form 35.
These documents have to be submitted at your local RTO along with a fee for removal of hypothecation.

What is the importance of a collateral in a loan?

A collateral is required when you are taking a loan against your car. New car loans need not have a collateral as the cars being bought will act as collateral. In case of a loan against your car, you pledge the car as a collateral for loan. In case you default on the payment of the loan, the bank may seize the car. However, a collateral is not required for purchasing a new car using loan as the new vehicle will act as the collateral itself. So if you default on the loan, the bank may seize your car.

What happens if I default on my EMI?

If you default on your loan or miss an EMI, the bank will charge a penalty to you every month. The ICICI BANK Bank charges a 2 per cent overdue charge per month if your miss your payments or don’t make your payments on time.

Is it important to have a good credit score while applying for a car loan?

Yes, you must have a good credit score to be eligible to apply for a car loan. The credit score of an applicant is a measure for the bank to decide how well-deserving the candidate is for a loan. If you have a habit of maintaining your financials and meeting your financial commitments timely, you are less likely to default on a loan. Therefore you are a good candidate for a loan. A credit score above 750 is considered good enough for a car loan.

Does a car loan have any tax benefit for the borrower?

No. Tax benefits are available to borrowers on education loan and housing loan alone. There are no tax benefits on car loans.

What are the features that decide the interest rate for a car loan?

Axis Bank decides what interest rate you have to pay based on your credit score, your income, your customer relationship with the bank and the car’s age and condition. If you have a credit score of 750 above, you will get a favourable interest rate. If your income is high, you are highly eligible for a car loan. The interest rate will also depend on your income. If you have a good track record with your bank in terms of other loans or other products, you are likely to get a discount on the interest rate. Because the car being purchased acts as s collateral against the loan, the make, age and condition of the car are very important in determining the interest rates. If you default on your loan, the bank may seize your car.

How do I update my mobile number or e-mail ID registered under my loan account?

You can login to Kotak Bank’s customer portal and create a service request for the same. Select Subject as Contact Details and update your new contact details and email ID and submit the request. Alternatively visit the nearest bank branch with a valid signature proof - PAN card copy / Passport Copy/Driving License Copy along with Original documents and submit an application for same. The bank will usually take three working days to process it.

What is a foreclosure report and how can I obtain the same?

A foreclosure report gives you the total outstanding amount that you have to pay in case you prematurely close your loan. You will be required to visit the nearest bank branch to obtain a physical copy of the report. You will be required to carry the following documents:
  • A request letter
  • A self-attested copy of your PAN card/ passport/driver’s licence/Aadhaar/voter id
  • Original documents.
The Charge for the foreclosure statement is Rs. 250plus GST. In case a bearer submits the request on your behalf, s/he needs to bring an authorised letter signed by you. In addition, the bearer needs to provide the necessary documentation including proof of identity.

How can I Prepay my Car Loan?

To facilitate prepayment of your car loan, you are required to visit the nearest bank branch along with the below mentioned documents to complete the prepayment process:
  • Request letter signed by you
  • Copy of Self attested PAN Card of the customer (For cash payment above Rs.50, 000).
  • Vehicle Registration Certificate (R C Book Copy)
  • Mode of payment can be cash, cheque or demand draft payable at par favouring the bank. However, do note that mode of payment can be cash subject to regulatory limits.
  • Customer's Self attested sign proof - PAN card copy/ Aadhar Card copy/Passport Copy/Driving License Copy. Also carry the original set of documents for verification.
In case a bearer submits the request on your behalf, a bearer authorisation along with KYC documents

How can I obtain my un-banked PDC or Security cheques?

The unutilized post-dated cheque(s)/any other additional cheque(s) will be retained at our end and shall be destroyed after 45days from date of termination of contract unless a contrary request of return of cancelled cheque(s) shall be received from your end within 45 days of termination date. In case the Current Address is different than on records with us, we request you to get a self-attested Address Proof for same.
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First Published on Aug 13, 2019 02:48 pm
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