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Home / Car Insurance / Articles / Lowest Axis Bank Car Loan Interest Rates | Instant EMI Calculator, Apply Now!

Lowest Axis Bank Car Loan Interest Rates | Instant EMI Calculator, Apply Now!

Team AckoJul 17, 2023

When it comes to financing your dream car, choosing the right bank for your car loan is crucial.

Axis Bank, one of India's leading private sector banks, offers attractive car loan interest rates that make owning a car a reality for many individuals.

In this article, we will delve into the details of Axis Bank car loan interest rates, exploring the different factors that affect these rates and the benefits of choosing Axis Bank for your car financing needs.

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Contents

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Axis Bank Car Loan Interest Rates in 2023

The following table provides more details about the Axis Bank car loan interest rates as of July 2023.

Axis Bank Car Loan Scheme

Interest Rate

New Car Loan

8.75% to 13.80

Used Car Loan

13.55% to 17.10%

Features of Axis Bank Car Loan

Here are the key features of the Axis Bank car loan schemes.

  • The minimum loan available is Rs. 1 lakh.

  • Financing of up to 100% of the on-road price is available for select models.

  • Choose a repayment term of up to 7 years for new cars and 5 years for used vehicles.

  • Customers of Priority Banking, Wealth Banking, and Private Banking enjoy additional privileges.

  • Customers holding Axis Bank pay accounts do not need to provide income documentation or bank account statements.

  • The car loan interest rate at Axis Bank starts at 8.75% per annum.

  • With a balance transfer or top-up loan, you can get up to 150% of the original loan amount.

  • You can purchase or upgrade to your dream car while receiving an assured buyback of up to 67% of the car's value with a Smart Buyback auto loan, 

How to Calculate Axis Bank Car Loan EMI

To calculate the EMI (Equated Monthly Installment) for an Axis Bank car loan, you can follow these steps.

Step 1. Gather the Required Information: Before you begin the calculation, ensure that you have the following details handy:

  • Loan amount: The total amount you plan to borrow from Axis Bank for your car purchase.

  • Interest rate: The applicable interest rate on your car loan.

  • Loan tenure: The duration or number of years for which you will repay the loan.

Step 2. Use the EMI Formula: The EMI calculation formula involves three key components: the loan amount (P), the interest rate per month (r), and the loan tenure in months (n). The formula is as follows.

EMI = [P x r x (1+r)^n] / [(1+r)^n-1]

Step 3. Convert the Interest Rate: Since Axis Bank car loan interest rates are usually quoted on an annual basis, you need to convert the interest rate to a monthly rate for accurate calculations. Divide the annual interest rate by 12 to obtain the monthly interest rate.

Step 4. Convert the Loan Tenure: Similarly, convert the loan tenure from years to months to align it with the monthly interest rate. Multiply the number of years by 12 to get the equivalent number of months.

Step 5. Apply the Formula: Substitute the values of the loan amount (P), monthly interest rate (r), and loan tenure in months (n) into the EMI formula.

Step 6. Calculate the EMI: Calculate the EMI using the formula mentioned in Step 2. The result will be your estimated monthly instalment.

Eligibility Criteria: Axis Bank Car Loan Eligibility

To get an Axis Bank car loan to buy a new or second-hand car, the applicant must fulfil the following eligibility criteria.

Salaried Applicant

  • The applicant should meet the minimum age requirement of 21 years and should not exceed the maximum age limit of 70 years.

  • The annual net salary should be Rs. 2.4 lakhs.

  • The applicant must be employed for at least one year.

  • The eligibility criteria based on income will be assessed using Form 16 and the salary slip provided.

Self-Employed Applicant

  • The applicant must meet the age requirement of being at least 18 years old but not exceeding 75 years old.

  • The minimum required net annual business income should be Rs.18 lakhs for certain car models; for other models, the minimum net annual business income should be Rs.2 lakhs.

  • The applicant should have worked for at least three years.

  • The income eligibility criteria will be evaluated based on the most recent income tax returns.

Priority Customer Applicant

  • Customers who have a minimum vintage of six months.

  • The applicant should maintain an average quarterly balance of Rs.1 lakh for the previous two quarters.

  • The maximum loan amount that can be availed should be three times the average quarterly balance for the previous two quarters.

Self-Employed Non-Individual Applicant

  • The minimum required net annual business income should be Rs.18 lakhs for certain car models; for other models, the minimum net annual business income should be Rs.2 lakhs.

  • The applicant should have worked for at least three years.

  • The applicant needs to submit Income Tax returns for at least two years, along with audited financial statements for two years and an estimation of income.

Application Process: How to Apply for Axis Bank Car Loan

There are two methods to apply for an Axis Bank car loan. The following sections explain the same.

Online Process

  • Visit the official website of Axis Bank.

  • Select “Car Loan” from the “Explore Products” menu.

  • Click on the “Apply Online” button against the loan you wish to apply.

  • Fill in the required details and submit the loan application.

Offline Process

Walk into your nearest Axis Bank branch and enquire about the car loan. The bank official will guide you through the application process. 

Documents Required to Apply for a Car Loan from the Axis Bank

Here is the list of documents you need to apply for an Axis Bank car loan.

KYC Documents

  • Identity proof (Passport, Driving Licence, Voter ID, PAN Card, and Aadhaar Card).

  • Address proof (Passport, Driving Licence, Voters ID, or Aadhaar Card).

  • Age proof (Passport, Birth Certificate, Driving License, or SSLC/AISSE Certificate).

  • Signature Proof (Banker’s verification, PAN card, Passport, etc.)

Salaried Applicants

  • Salary slips and latest Form 16.

  • Three months' bank account statements.

  • Proof of employment continuity (Appointment letter, relieving letter, work experience certificate, etc.)

Self-Employed Applicants

  • Bank account statements for the previous 3 months.

  • Latest ITR (Income Tax Returns).

  • Proof of employment continuity (Sales tax or VAT certificate, current account statement, etc.)

  • Proof of business (Electricity bill, telephone bill, Shop and Establishment Act certificate, etc.)

Trusts/Societies/Partnership Firms

  • Bank account statements for the previous 3 months.

  • Income proof (Audited balance sheet and ITR and profit and loss account for the last 2 years).

  • Proof of business continuity (Current account statement, sales tax/VAT certificate, etc.).

Private Limited/Limited Companies

  • Bank account statements for the previous 3 months.

  • Income proof (Audited balance sheet and ITR and profit and loss account for the last 2 years).

  • Proof of business continuity (Current account statement, sales tax/VAT certificate, etc.).

  • Additional documents (PAN card, certificate of commencement of business for Limited Companies, board resolution, etc.)

Factors Affecting Axis Bank Car Loan Interest Rates

Several factors can influence the Axis Bank car loan interest rates. These factors include the following.

  • Loan Amount: The loan amount you apply for can impact the interest rate. In general, larger loan amounts may attract lower interest rates as banks are more willing to offer competitive rates for substantial loans.

  • Loan Tenure: The duration or loan tenure chosen by the borrower can affect the interest rate. Axis Bank provides flexible loan tenures ranging from 1 to 7 years. Typically, longer loan tenures may have slightly higher interest rates due to the increased repayment period.

  • Credit Score and Credit History: The creditworthiness of the borrower plays a crucial role in determining the interest rate. Axis Bank assesses the applicant's credit score and credit history to evaluate their repayment capability and creditworthiness. A higher credit score and a good credit history are likely to result in more favourable interest rates.

  • Type of Car: Whether you are purchasing a new car or a used one can impact the interest rate. Generally, interest rates for used cars may be slightly higher compared to new cars due to factors such as the car's depreciation and condition.

  • Market Conditions: Interest rates can be influenced by market conditions and the prevailing economic environment. If there are fluctuations in market conditions or changes in the Reserve Bank of India's monetary policies, interest rates may be adjusted accordingly.

  • Relationship with Axis Bank: Existing customers who have a longstanding relationship with Axis Bank may be eligible for special interest rate benefits. Axis Bank often offers preferential rates to customers with multiple accounts, such as savings accounts or fixed deposits, as well as those who have availed of other banking services.

Check Out Car Loan Interest Rates from Other Banks in India (2023)

The following table lists the car loan interest rates (as of July 2023) of various banks in India.

Bank Name

Car Loan Interest Rate (Per Annum)

State Bank of India

8.60% onwards

Bank of Baroda

8.70% onwards

Union Bank of India

8.80% onwards

HDFC Bank

8.85% onwards (Rack Interest)

Federal Bank

11% onwards

Axis Bank

8.75% onwards

Canara Bank

8.80% onwards

Punjab National Bank

8.75% onwards

ICICI Bank

8.85% onwards

Kotak Mahindra Bank

7.70% onwards

Bank of India

8.85% onwards

IndusInd Bank

7% onwards

Yes Bank

9.7% onwards

UCO Bank

8.70 onwards

Frequently Asked Questions (FAQs) about Axis Bank Car Loan

Here are some of the most common questions and their answers related to Axis Bank car loans.

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What is the car loan interest rate in Axis Bank?

The interest rates for Axis Bank car loan starts at 8.75%.

How are Axis Bank car loan interest rates determined?

Axis Bank car loan interest rates are influenced by various factors, including the loan amount, loan tenure, type of car (new or used), the applicant's creditworthiness, and prevailing market conditions. The bank evaluates these factors to determine the interest rate offered to borrowers.

Can I negotiate the interest rate on my Axis Bank car loan?

The interest rates offered by Axis Bank are typically based on internal policies and market conditions. While negotiation may not be possible on the standard interest rates, existing customers and individuals with a strong credit profile may have some leverage to negotiate better rates.

Do Axis Bank car loan interest rates vary based on the type of car I want to purchase?

Yes, the type of car you plan to purchase can impact the interest rate on your Axis Bank car loan. Generally, interest rates for used cars may be slightly higher compared to new cars due to factors such as depreciation and the condition of the vehicle.

How can I find out the specific interest rate I would be eligible for?

It is recommended to contact Axis Bank directly or visit their official website to determine the exact interest rate you would qualify for. The bank will assess your individual circumstances, including your creditworthiness and loan requirements, to provide you with specific interest rate details.

Disclaimer: The above content is for informational purposes only. It is recommended to take the help of an expert before making a decision.

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