IndusInd Bank Car Loan Interest Rates
IndusInd Bank Car Loan interest rates range from 8.0% p.a. to 30% p.a., with new car loans priced lower than used car loans. Your final rate depends on the car's age, your loan tenure, your income and your existing relationship with the bank. Compare the complete rate, fee and tenure details in the tables below before you apply.
The interest rate can differ from applicant to applicant based on whether the car is new or used, the model of the car, the income of the applicant, the profession of the person, and so on.
Features | New Car Loan | Used Car Loan |
Interest rate | 8.0% p.a. to 28% p.a. | 10% to 30% p.a. |
Loan tenure | Up to 60 months | Up to 60 months |
Processing charges | Up to 5% of the loan amount | Up to 5% of the loan amount |
Quantum of finance | Up to 100% finance | — |
Note: The interest rates are effective from 27 August 2026.
IndusInd Bank Car Loan Fees and Other Charges
Charge Type | Amount |
Documentation charges | Up to 5% of the loan amount |
Overdue/penal interest | Up to 36% p.a., compounded monthly |
Foreclosure charges | 2% to 5% of the outstanding principal amount |
Duplicate NOC issuance charges | Rs.500 per vehicle per issuance |
Loan cancellation charges | Rs.1,500 per cancellation |
Stamping charges | As per the Stamp Act of the State |
Note: The interest rates are effective from 1 January 2020.
You can use IndusInd Bank's online car loan EMI calculator to estimate your monthly instalment before you apply for an IndusInd Bank Car Loan.
Factors Affecting IndusInd Bank Car Loan Interest Rates
The car loan interest rate offered to you by the bank depends on several factors, some of which are mentioned below:
- Loan amount: The bank will decide the interest rate to be offered based on the amount you choose to borrow. Higher the amount, higher the chances of getting a higher rate of interest.
- Loan tenure: The longer the tenure of the loan, the lower the rate of interest. However, this also means that you will end up paying more in terms of interest. On the other hand, a shorter loan tenure means a higher rate of interest but the total amount of interest you end up paying is much lower.
- Debt-to-income ratio: Your debt-to-income ratio also plays an important role in deciding the rate of interest you are charged for your car loan. The lower the number of existing debts and debt amounts, the higher the chance of getting a loan approved at an affordable rate of interest.
- Age and make of the vehicle: The bank will run a check of the make and model of the car to ascertain its current value as well as resale value in the future. The age will also be taken into consideration while approving as well as determining the interest rate to be charged.
- Discounts offered by dealers and manufacturers: IndusInd Bank has tie-ups with major car dealers and manufacturers and can help you get the best deal for your car. You can buy the car for an affordable price and get a car loan for a good rate of interest.
- Relationship with the bank: IndusInd Bank could offer a lower rate of interest if you are a longstanding customer who has been timely with payments related to loans or other credit facilities.
Documents Required for IndusInd Bank Car Loan
An IndusInd Bank Car Loan application typically requires the following documents:
- Identity proof, such as a PAN card, passport or driving licence
- Address proof, such as a voter ID card or passport
- Recent photographs
- Car-related documents
- Income proof, such as salary slips or the latest income tax return
Summary
IndusInd Bank Car Loan finances both new and used vehicles, with your final interest rate shaped by the loan amount, tenure, your debt profile and the vehicle you choose. The loan comes with flexible fixed or floating rate options and is secured against the car itself. Check the current rates, fees and documents above, then apply directly with IndusInd Bank.
FAQs on IndusInd Bank Car Loan Interest Rates
1.What is an IndusInd Bank Car Loan?
An IndusInd Bank Car Loan is a financing facility that helps you buy a new or used car through monthly EMIs instead of paying the full price upfront. IndusInd Bank decides your loan amount and rate based on the car you choose, your income and your credit profile. Both salaried and self-employed individuals can apply.
2. What factors affect the IndusInd Bank Car Loan interest rate?
The IndusInd Bank Car Loan interest rate depends on factors such as your loan amount, tenure, debt-to-income ratio and the age and make of the car you finance. Existing IndusInd Bank customers with a good repayment history may be offered a more competitive rate. Check the factors listed above for the complete picture.
3. Does IndusInd Bank offer a fixed or floating rate on a car loan?
Yes, an IndusInd Bank Car Loan is available on either a fixed or a floating interest rate basis. Choosing a floating rate can work in your favour if interest rates are expected to fall during your loan tenure.
4.What documents are required for an IndusInd Bank Car Loan?
An IndusInd Bank Car Loan application needs identity proof, address proof, income proof, photographs and documents related to the car being financed. Salaried applicants typically submit salary slips, while self-employed applicants submit income tax returns. Check the documents section above for the complete list.
5.Who can act as a co-applicant for an IndusInd Bank Car Loan?
Any person capable of repaying the loan under IndusInd Bank's rules and residing in the same city as the primary applicant can act as a co-applicant. The exact requirement can vary from applicant to applicant.
6.Is collateral required for an IndusInd Bank Car Loan?
Yes, the car you finance through an IndusInd Bank Car Loan itself serves as security for the loan. IndusInd Bank hypothecates the vehicle after the loan is sanctioned and before the loan amount is disbursed.
7.Do I need an existing account with IndusInd Bank to get a car loan?
No, it is not mandatory to hold an account with IndusInd Bank to get an IndusInd Bank Car Loan. However, having an account with the bank can give you access to additional services.
8.Can I get an IndusInd Bank Car Loan without submitting income documents?
Yes, IndusInd Bank can process a car loan under a special scheme that does not require the applicant to submit income documents. Speak to the bank's sales team to check whether you qualify for this scheme.
9.What charges apply on an IndusInd Bank Car Loan?
An IndusInd Bank Car Loan carries charges such as documentation charges, foreclosure charges, duplicate NOC issuance charges and loan cancellation charges. Check the fees and charges table above for the applicable amounts.
10.Does the IndusInd Bank Car Loan interest rate differ for new and used cars?
Yes, IndusInd Bank charges a different interest rate for new and used car loans, reflecting the difference in vehicle risk and resale value. Compare both rates in the table above.
11.How can I repay an IndusInd Bank Car Loan?
You can repay an IndusInd Bank Car Loan through post-dated cheques in favour of IndusInd Bank Ltd, standing instructions, or ECS from another bank account. Choose the method that is most convenient for your monthly repayment.
12.How can I estimate my EMI for an IndusInd Bank Car Loan?
You can estimate your monthly instalment for an IndusInd Bank Car Loan using IndusInd Bank's online car loan EMI calculator. Enter your loan amount, tenure and applicable interest rate to see your approximate EMI before applying.
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