IDBI Bank Car Loan Interest Rates

IDBI Bank Car Loan Features & Benefits

IDBI Car Loan Processing Fees & Other Charges

Factors affecting IDBI Bank Car Loan Interest Rates

There are numerous factors that have an impact on the interest rates for an IDBI Bank car loan. These, in turn, help to determine the loan amount given to the prospective applicant, along with the interest amount charged. 

Some of these factors are given below: 

1. Income - The applicant's income is important. The criterion for eligibility differs for every category of employed individuals. For example, if the applicant is self-employed, then the minimum income required differs as compared to a salaried individual. 

1. Loan Duration - Another significant determinant considered is the tenure within which the customer repays his loan. Generally, it is seen that most applicants opt for tenures that are longer as the EMI amount to be paid every month is less, however customers need to remember that with longer tenures, interest rates are also more and therefore it would be advisable to opt for a short loan tenure. 

1. CIBIL Scores - The TransUnion score is given a lot of importance by bankers and financial institutions in order to understand a person's eligibility for a certain loan. This score is given by the Credit Information Report and scores more than 750 are preferred by those providing loans. 

Those with high CIBIL scores are also considered to be less risky in terms of loan repayment and can therefore procure loans easily compared to those with low CIBIL scores. 

1. Relationship with the Bank: A previously established relationship with the bank is an added benefit. Lenders typically provide offers and benefits for customers who have a prior working relationship with them. 

1. Down Payment: This is a factor which has an impact on the interest rate provided by the bank. Customers who pay a higher down payment stand a greater chance of availing low interest rates. 

A good credit score can help you secure lower interest rates on loans and credit cards.

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