Andhra Bank Car Loan Interest Rates
he rates of interest offered on a car loan from Andhra Bank are very appealing. Customers can enjoy repaying the loan at low rates of interest. The rates of interest are determined based on your choice of new or used car loans. Furthermore, if you are an existing Andhra Bank Home Loan customer, you are eligible for a concessional interest rate on your Andhra Bank car loan.
Andhra Bank Interest Rate Table for New Car Loans
| Particulars | Charges |
| Interest Rate | 9.20% |
| Interest rate concession for existing home loan customers | 0.25% concession on rate of interest |
| Loan Amount | Salaried individuals – up to 60% of net salary. Non-salaried – up to 70% of net earnings. Corporate clients and firms – Rs.25 lakhs to Rs.50 lakhs |
| Loan Tenure | Maximum 84 months |
| Processing fee | A nominal fee is charged upfront when the loan is sanctioned |
| Administrative charges | Charged at the end of every quarter |
| Part Payment Charges | Nil |
| Foreclosure charges | Applicable as per your loan |
Andhra Bank Interest Rate Table for Used Car Loans
| Particulars | Charges |
| Interest Rate | Base rate + 3.25% |
| Interest rate concession for existing home loan customers | 0.25% concession on rate of interest |
| Maximum age of used car | 3 years |
| Loan Amount | 60% of garage value or Rs. 25,00,000 /- whichever is lower. |
| Loan Tenure | Maximum 60 months |
| Processing fee | A nominal fee is charged upfront when the loan is sanctioned |
| Administrative charges | Charged at the end of every quarter |
| Part Payment Charges | Nil |
| Foreclosure charges | Applicable as per your loan |
Andhra Bank Car Loan Interest Rate Table for Women Borrowers
| Particulars | Charges |
| Interest Rate for new car loans | Base rate + 0.50%. Currently 10.50% p.a |
| Interest Rate for used car loans | Base rate + 3.25% |
| Concessions as Processing Charges | 1% of the loan amount + GST |
| Maximum age of used car | 3 years |
| Loan Amount for New cars | 90% of on road price or 3 years gross salary whichever is lower |
| Loan Amount for Used cars | 60% of garage value or 3 years gross income whichever is lower, subject to maximum of Rs. 25.00 lakhs |
| Loan Tenure for New cars | Minimum 12 months and maximum 72 month. |
| Loan Tenure for Used cars | Maximum 60 months |
| Processing fee | A nominal fee is charged upfront when the loan is sanctioned |
| Administrative charges | Charged at the end of every quarter |
| Pre Payment Charges | Nil |
How to Calculate Interest Rate on my Andhra Bank Car Loan
Calculating anything from your eligibility to your EMI to the total interest you would pay on your loan has never been easier. With the calculator available on BankBazaar.com, you can find out all the information you need without ever having to do any math. Visit BankBazaar.com, and hover over “Finance Tools”. Click on Car Loan EMI calculator.
Enter the details of your loan; loan amount, tenure, interest rate and processing fees. The calculator will give you a complete computation of all the components of your loan including your interest payable.
Alternatively, you can manually calculate the interest on your Andhra Bank car loan using this formula: E = P*r*[(1+r)^n/(1+r)^n-1)]
P = Principal Loan Quantum
E = EMI
R = Rate of interest per month
N = Number of years
To expand on the formula,
(Principal) X (Interest rate per month) X (1+Interest rate per month) to the power of loan tenure
[(1+Interest rate per month) to the power of loan tenure – 1]
According to the calculator:
- Your EMI will be Rs. 5121
- You will pay Rs. 45792 totally in interest.
- Assuming 1% processing fees is charged, the amount will be Rs. 2000.
- The total amount you will pay back on your loan is Rs. 2,47,792.
Amortization schedule
The following schedule is based on a Rs. 2 Lakh Andhra Bank Car Loan sanctioned in October 2016 for the purchase of a new car taken for a tenure of 4 years. The rate of interest is base rate +0.50%. The processing fee has been assumed to be 1%.
| Year | Principal Paid | Interest Paid | Total Payment | Outstanding loan balance |
| 2015 | Rs. 10201 | Rs. 5,162 | Rs. 15,363 | Rs. 1,89,799 |
| 2016 | Rs. 43578 | Rs.17,872 | Rs. 61,450 | Rs. 1,46,222 |
| 2017 | Rs. 48379 | Rs. 13,068 | Rs. 61,447 | Rs. 97,843 |
| 2018 | Rs. 53710 | Rs. 7,736 | Rs. 61,446 | Rs. 44,133 |
| 2019 | Rs. 44133 | Rs. 1,952 | Rs. 46,085 | Rs. 0 |
Factors affecting Andhra Bank Car Loan Interest Rates
Income – Your income plays a role in determining the interest rates on your car loan. Generally, the interest rate is fixed for all, but banks can increase the interest rate at its discretion based on your income. Banks need assurance that you will repay the loan, therefore they will look into how much you are earning, as well as how much current debt you hold. The higher your debt-to-income ratio, the higher your interest rates could go. A co-signer could help reduce the rate of interest.
Credit Score – As stated already, banks need to know that you will be able to repay the car loan, so your prior credit history plays a pivotal role. Your credit score is maintained by CIBIL, the credit information bureau of India. It records all behaviour related to credit, good and bad. Therefore a good credit score means you have managed your credit well. Repaying your loan EMIs on time, paying your credit card bills in full, and avoiding defaults leads to a high credit score.
Loan Tenure – A long loan tenure would result in you paying more interest over the course of your loan. Banks might consider a lower rate of interest if you have a good credit score and you meet the eligible income criteria. Even with a lower rate of interest on your car loan, they will recover a higher amount of interest. But considering that a longer tenure means that there is a lot more time for things to happen, banks may not be willing to lower the interest rates. Unfortunate events such as accidents, disabilities or even death would hamper the repayment of the loan. A long tenure is more risky for the bank because A shorter tenure doesn’t give much time for for interest and inflation rates to skyrocket.
Down Payment – A bigger down payment means you have less of the loan to clear. It’s favourable to make a large down payment as the bank’s risk comes down. Banks will have a lesser amount to recover from you over the tenure of your loan. In case the value of the car depreciates drastically, and you are unable to repay the loan, the bank will recover the money by seizing and selling the vehicle. So, a lesser amount to recover is always more favourable.
Car model and age – New cars tend to lose their value quickly. Some models depreciate faster than others. So choosing a car model that doesn’t lose its value will work in favour of the interest rates on your car loan. Banks will be assured that they can recover a high amount from selling the vehicle in the event that you cannot pay back the loan.
Tips on Andhra Bank Car Loan Interest Rates
- Andhra Bank Car Loan Interest Rates 2017 is currently at 10.50% p.a.
- For women borrowers earning more than more than Rs. 1,00,000 /- p.a, refer to the car loan scheme for women to avail of better rates of interest. You can also increase your eligibility by adding your husband as a co-obligant. You can show 50% of your husband’s salary to increase your eligibility. You will receive 1% of the loan amount as concession on processing charges. Also enjoy no prepayment charges if you choose to foreclose your loan.
- Existing Andhra Bank home loan customers can enjoy a 0.25% concession in the interest rate of an Andhra Bank car loan.
- You can enquire into your own CIBIL score on the CIBIL website before you approach any bank for a loan. This will help you determine beforehand if you are eligible for a loan. If you find that your CIBIL score is high, you will be in a better position to bargain for a better interest rate.
- A co-applicant or a co-signer in the loan can also help secure good terms on your car loan.
- In case of an Andhra Bank used car loan, ensure the make and model are good, and age of the car doesn’t exceed three years. The condition of the car also matters. These can factor into your eligible loan amount and interest rates.
