Syndicate Bank Car Loan Interest Rates 2018
Syndicate Bank offers car loans at an attractively low interest rate of 10.35% and it is calculated based on monthly reducing balance. The interest rate is linked to the base rate which fluctuates periodically. Hence, the total interest payable is Base Rate plus 0.65%. Repayment tenure is very flexible as the borrower can choose to repay the car loan amount in up to 84 EMIs. For new cars, a customer can repay up to 7 years and for used cars the repayment tenure is 5 years.
Syndicate Bank Car Loan Interest Rates 2018 Table
| Interest Rate | 10.35% (Base Rate + 0.65%) |
| Maximum Loan Amount | Maximum loan amount offered to a borrower is either:
In case the borrower is a Corporate entity, then only 85% of On road price is offered as loan (if the value is above Rs.25 lakhs) |
| Minimum & Maximum Car Loan Tenure | Minimum Tenure – 12 months Maximum Tenure – 84 Months (7 years) |
| Processing Fees/Charge |
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| Documentation Charges | For a loan amount below Rs. 2,00,000 – Nil For loan amount above Rs. 2,00,000 the documentation charge is Rs. 100 per lakh with a maximum amount capped at Rs. 1250. |
| EMI per Lakh | Rs. 1678/-* (for a 7 year loan tenure at 10.35% interest) |
How to Calculate my Syndicate Bank Car Loan Interest Rate
Calculating Syndicate Bank Car Loan Interest is based on a simple formula which is:
EMI (E) = [P x r x (1+r)^n]/[(1+r)^n-1]
Here, the values connoted “E”, “P”, “R” and “n” stands for is EMI, the principal amount of the loan, the applicable rate of interest and the loan tenure, respectively. “R” is the interest rate that is applicable on the loan amount, per month. Therefore, in order to get the monthly rate of interest, the formula used on the annual interest rate is 10.35/(12 x 100).
Factors Affecting Syndicate Bank Car Loan Interest Rates
- Co-Applicant – If you have a co-applicant for the car loan, your chances of getting the car loan approved at lower interest rate is really high. This is because of the fact that the co-applicant’s income will also be added to calculate the overall income eligibility and repayment capacity. Having a co-applicant who has good income as well as a strong credit history can help you to avail a car loan at an attractive rate of interest from Syndicate Bank. A co-applicant can be your spouse, children, siblings, or parents. This enhances your opportunity of negotiating a lower rate of interest on the loan since the risk involved in lending the money is minimized.
- Debt-to-Income Ratio – Syndicate Bank scrutinizes an applicant’s income earned and relative debt outflow in order to evaluate their repayment capacity and creditworthiness. If you have a healthy income outflow compared to your net annual earnings, you can get a quick car loan approval. In such a situation, you can negotiate with the bank for a lower rate of interest.
- Loan margin- The loan margin or down payment made by you on the overall price of the car of your choice also influences the interest rate applicable on the car loan offered by Syndicate Bank. This is because down payment on the car and interest rate are inversely proportional, i.e., the bigger the down payment the lower is the interest rate applicable on the car loan.
- Loan Tenure – If the tenure you have chosen for your car loan is longer, it indicates higher risk of default payments to the bank. To negate this risk the bank might increase the interest rate applicable on the loan. By going for a lower loan tenure, the bank will be assured of quicker repayment so you can expect a lower interest rate.
- Existing Customers – Existing customers of Syndicate Bank have better chances of getting a lower rate of interest on their car loan. Since you already have a record of repayment and documents related to income, etc. the chances for getting your car loan application approved at a lower interest rate is high.
- CIBIL Score – CIBIL score of an applicant greatly influences the Bank’s decision regarding car loan approval and assignment of interest rate on the loan. A good credit rating helps a borrower to get a lower rate of interest on the car loan sanctioned by the Bank since the risk related to defaulting on the loan will be lower.
Key Points to Note About Syndicate Bank Car Loan Interest Rates
- Syndicate Bank’s SyndVahan Car loan scheme is offered only to individuals who earn a net annual income of at least Rs. 2 Lakhs or more.
- Repayment can be made in up to 84 EMIs.
- Interest rate is linked to Base Rate and overall interest rate is equal to prevailing base rate plus 0.65%.
- Those who are eligible to avail a SyndVahan scheme are: Proprietors, Individuals, Partnership firms, Trusts, Agriculturists, Societies and any other legal entity. This does not include Hindu Undivided Families, Directors/Employees of Corporates, etc.
- Borrowers who are employed under PSUs/Govt/BlueChip Companies can get a concession of 1% on the prevailing interest rate in the SyndVahan scheme.
