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Axis Bank Car Loan Review: Interest Rates @ 8.70%

Axis Bank provides a wide range of car loan products with flexible eligibility criteria.

Axis Bank Car Loan Review: Interest Rates @ 8.70%

Axis Bank provides a wide range of car loan products with flexible eligibility criteria.

Editor's Rating

4.0/5.0

Good for

  • Maximum funding
  • All ages of applicants

Bad for

  • Low foreclosure fees
  • Lowest interest rates

The Axis Bank car loan is best for borrowers who are in need of maximum financing at competitively priced interest rates starting from 8.70%. The bank's new and used car loan rates are not the lowest in India, however, the flexibility of Axis Bank's car loan eligibility criteria balances this potential drawback. For instance, Axis car loans are open to applicants with incomes below Rs. 2.5 lakhs, as well as borrowers between the ages of 18 and 70. ValueChampion recommends the Axis Bank car loan to borrowers who benefit from the bank's inclusive eligibility criteria.

Summary of Axis Bank Car Loan
New car loan interest rates from 8.70%
Used car loan interest rates from 10.45%
100% on road financing for new cars
Car loans for applicant ages 18 - 70

Table of Contents

What Makes Axis Bank Car Loans Stand Out to Borrowers

Axis Bank stands out with its wide range of car loan products, including a loan against car option and buyback loan. Additionally, the lender is one of few that provides 100% financing for new cars. While the bank does not have the lowest car loan interest rates in India, it still offers relatively low interest car loan options to borrowers. Below, you can find the main features of each Axis car loan option available to borrowers.

Axis Bank Car LoansFeatures
Axis Bank New Car Loan
  • Up to 100% financing, minimum Rs. 1 lakh
  • Special benefits for Axis bank customers
Axis Bank Pre-Owned Loan
  • Up to 85% financing, minimum Rs. 1 lakh
  • Tie up with dealers for full support
Axis Bank Loan Against Car
  • Up to 50% financing of original loan amount
  • Minimal documentation required
  • Cash facility available
Axis Bank Balance Transfer & Top Up
  • Up to 150% financing of original loan amount
  • 5 year tenure
Axis Bank Smart Buyback Car Loans
  • Exclusive Axis Bank product with CarDekho
  • Avail up to 67% of your car's value should you choose to return it after your loan tenure
  • 40% lower EMIs

Axis Bank Car Loan Interest Rates

Axis Bank interest rates
Based on minimum rates for new car loans. Rates are subject to change.
Axis Bank interest rates
Based on minimum rates for new car loans. Rates are subject to change.

While Axis Bank does not make our top 10 lowest interest car loans, the lender's interest rates are low enough to benefit applicants seeking to minimise their total cost of borrowing. Axis Bank new car loan rates of 8.70% to 10.95% are below our calculated average of 9.06%, which shows that the lender is still a good option to consider for your new car purchase.

However, Axis Bank used car loan interest rates are relatively high, ranging between 14.45% and 16.45%. If you are in need of financing for a used vehicle, ValueChampion recommends that you consider lower interest options, like HDFC Bank or State Bank of India.

Below, you can find the interest rates for each Axis Bank car loan, including their loan against car and buyback car loan option.

Axis Car Loan Interest Rates per Car Loan Scheme

Axis Bank LoanLowest Interest RateHighest Interest Rate
Axis Bank New Car Loan8.70%10.95%
Axis Bank Pre-Owned Loan14.45%16.45%
Axis Bank Loan Against Car14.45%16.45%
Axis Bank Balance Transfer & Top Up14.45%16.45%
Axis Bank Smart Buyback Car LoansFrom 10.50%

Axis Bank Car Loan Eligibility

Axis Bank car loan eligibility is flexible and more generous than other lenders that we analysed. The bank is one of the few lenders to offer 100% on-road financing, specifically for new car loans and buy back loans. Axis used car loans only cover up to 85% of your vehicle's valuation, although this is still considerably higher than many other lenders who finance between 60% and 80%.

In terms of eligibility criteria, the bank offers a standard tenure of 7 years for new cars and 5 years for second hand vehicles. Axis Bank also has a wide age requirement range, allowing borrowers between the ages of 18 and 70 to apply for certain car loans, where most other banks only accept applicants between 21 and 65 years old.

As a final mention, Axis Bank's income requirement is lower than other popular car loan lenders. Salaried individuals should make a minimum of Rs. 2.4 lakhs per annum, while self-employed individuals should make at least Rs. 1.8 lakhs. Compared to banks with a minimum annual income between Rs. 2.5 lakhs and Rs. 3 lakhs, Axis Bank provides more opportunity to lower income earners. However, the caveat is that Axis Bank requires 1 year employment stability from salaried borrowers and at least 3 years of employment stability from self-employed applicants.

Axis Bank Car Loan Processing Fee and Other Charges

Axis Car LoanProcessing Fee
Axis Bank New Car LoanRs. 3500 - Rs. 5500
Axis Bank Pre-Owned Loan1.00%, maximum Rs. 6000
Axis Bank Loan Against Car1.00%, maximum Rs. 6000
Axis Bank Balance Transfer & Top Up1.00%
Axis Bank Smart Buyback Car LoansRs. 3500 - Rs. 5500

Axis Bank car loan processing fees are not the lowest amongst the lenders we analysed, but they do benefit some borrowers with a flat rate fee, as opposed to a percentage of the total car loan amount. However, the bank does charge high prepayment and foreclosure fees of 5.00%, which is not cost-effective for borrowers who plan to pay down their loan in advance.

Axis Bank Car Loan EMI Calculator

You can use a car loan calculator to estimate your equated monthly instalments and total cost of borrowing. By inputting your car loan interest rate, loan tenure, and loan amount, you can plan your repayments before applying. Click here to use the Axis car loan calculator.

Axis Bank Car Loan EMI Repayment Schedule

To help you visualize how much you will need to pay each year of your loan tenure, our team of financial analysts calculated an EMI repayment schedule, as shown below.

Stage of Loan TenureEMIInterest PaidPrincipal PaidOutstanding Balance
Year 1₹15,937₹82,741₹108,506₹891,494
Year 2₹15,937₹72,915₹118,332₹773,163
Year 3₹15,937₹62,200₹129,047₹644,116
Year 4₹15,937₹50,514₹140,733₹503,383
Year 5₹15,937₹37,770₹153,477₹349,906
Year 6₹15,937₹23,872₹167,375₹182,531
Year 7₹15,937₹8,716₹182,531₹0
Based on an Rs. 10 lakh car loan over a 7 year tenure. Interest rate is set at 8.70% per annum, with no processing fee calculated in the outstanding balance.

Axis Bank Car Loan: Apply

To begin your Axis Bank car loan application, you can request a callback from the lender after submitting your contact details online.

Axis Bank Car Loan Customer Care

If you have any queries about the Axis Bank car loan application process, contact Axis Bank customer care through any of the methods below.

Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.