Is it Good to Take Car Loan From South Indian Bank ?

You often take into account the interest rate, processing fee, as well as fees for late payment, prepayment, and foreclosure, etc., when considering taking out a loan to purchase the car of your choice. One such considerable option is South Indian Bank (SIB); founded in 1929; operates its vehicle lending business out of over 850 branches, 4 service branches, and 20 regional offices dispersed across the nation. By applying for a South Indian Bank Car Loan, you may thus satisfy your wish for a car.

Let us discuss in simple form the factors that can make South Indian Bank Car Loan a good choice for you.

Features, fees & charges

  • One can get Minimum loan amount of Rs. 2 lakhs whereas maximum loan amount can be anywhere between 85 to 90 percent of the ex-showroom price.
  • If we talk about margin than it can range anywhere between 5 to 15%.
  • For repayment you get 7 years to repay your outstanding amount when loan backed with 100% collateral security such as deposit, property, gold, LIC, NSC. However, in case of no collateral security, repayment period will be 5 years and the combined net worth of the signatories to the loan documents must equal to twice the loan amount in case of no collateral security.
  • Guarantor is must for availing loan from South Indian Bank.
  • South Indian Bank charges interest rate between 9.15 to 10.10% per annum and processing fee of  0.25% of the loan amount or Rs.5,000 whichever is less.
  • Bank does charge late payment penalty of 2% per month.
  • There are no prepayment or foreclosure and inspection and documentation charges.

The only criteria for loan application by salaried, as well as self-employed people are that of age i.e they have to be between age group of 21 to 60 years. Other than that there is no specific minimum income for any applicant.    

Documents Required for SIB Loan for both Salaried and Self employed applicant

1. Passport size Photo

2. For identify proof PAN card/ Passport/ Voter ID/ Driving License can be produced.

3. For Residence Proof one can again produce passport/ voter ID, Electricity Bill/ Telephone Bill

4. Income Proof for salaried applicant a latest salary slip, Form 16 or ITR for past two years can be produced whereas for self employed last 2 years ITR, Profit & Loss Account Statement and Audited Balance Sheet for 2 Years, Sales Tax Certificate/Copy of Partnership/SSI Registered Certificate/Shop & Establishment Certificate can be produced.

5. Lastly a bank account statement for past 6 months is also required.

6. For Sign Verification Proof -Passport/Photo Driving License with birth date (laminated, recent , legible)/ Credit Card Statement with Credit Card Copy/Banker’s Verification, Copy of Margin money paid to bank can be produced.

South India Bank Car Loan EMI Calculator

You’re all probably curious to know what the EMI is for a car loan that you must pay to the bank. You can use the vehicle loan EMI calculator provided by the bank for that. It functions in accordance with the loan’s principle, interest rate, and term. If you accept a loan offer for Rs. 5 lakhs at an interest rate of 9.15% annually, your resulting EMI and interest costs will be as shown in the table below.

Loan Amount (Rs)Tenure (Years)Interest Rate (p.a)EMI (Rs)Total Interest (Rs)Total Amount (Principal+Interest) (Rs)
5,00,00019.15%43,76125,126 5,25,126
5,00,00049.15%12,47898,952 5,98,952

Hopefully, after reading the above content, you understand the process of taking a car loan from South Indian Bank. It is a good decision to take a car loan from SIB since it is a very old bank and you also get a lower interest rate, and you also don’t have to pay prepayment or foreclosure fees, or inspection and documentation fees.