Concepts In Car Loan
What is a Car Loan?
Car loans are a type of loan that is used for mostly buying a brand new/used car. Buying a car is an expensive affair and so people need to be very careful while taking out the car loans.The new cars are more expensive than old cars so they also need higher down payment and monthly installments as well. The monthly installments depend on the number of years left in the loan term, interest rate and the value of the vehicle being purchased with the loan.
Features & Benefits of a Car Loan
⦁ Quick and easy procedures & disbursement
⦁ minimal documentation
⦁ low rate of interest
⦁ Up to 100% ex-showroom funding with reasonable rates
⦁ flexible tenure
⦁ Prepayment/part payments options
Car Loan EMI Calculator
Types of Car Loan
New car loans are a good option for those looking to buy a new car right after leaving the dealer. The bank will provide a 9-14% interest rate for 1-7 years. New car loans can be applied for most makes and models, making it easy and affordable to get the one that best fits your needs.
Banks and non-banking financial companies offer used car loans of up to 80-85% of the price of the car for an interest rate ranging from 12-18%. The loan can be taken for a term of 1 to 5 years. If you're looking for a pre-owned or used vehicle, this could be a good choice.
When you need money urgently, one option is to borrow it by using your old car as a form of collateral. This process is called Loan against Car.Some banks in India offer a car loan up to Rs.10 lakh or 100% of the value of your old car at 14-15% interest p.a. for 1-3 years with a bad credit score. For instance, if you don't want to do the hard work of selling your old car and browsing through buyers, you can use it as collateral with.
Eligibility criteria for Car Loan
- Age Limit- Minimum 21 years to Maximum 58 years
- Work status – Salaried Employee
- Work Experience – Minimum 1 year
- Salary- Minimum net salary Rs. 20,000/- and above, based on your working city.
- Employment – MNC, public or private limited company(If proprietor/partnership, need PF statement or salary minimum Rs. 35,000/-)
- CIBIL Score- Minimum 650 and above
The above-mentioned personal loan eligibility criteria are indicative in nature. Lenders have the discretion to relax or make the documents for a personal loan more stringent from one applicant to another.
Documents/Check list for Car Loan
For Salaried Employees
- ⦁ Adhar , Voter ID, Driving Licence, passport
⦁ Pan
⦁ Passport size photo
⦁ Latest 3 months payslips
⦁ Company id
⦁ Minimum 2 yr employment proof
⦁ Latest 6 months bank statement
⦁ Estimation copy from showroom/car rc(for used loan)
⦁ Present address proof(adhar, voter id, driving licence, passport, HR letter, gas bill, rental agreement on Rs. 100 bond paper, postpaid bill).
⦁ Additional Documents: own house proof, 2 years Form 16 and PF passbook statement.(These additional documents are not for all, for required customers only)
For Salaried Employees
- ⦁ Adhar , Voter ID, Driving Licence, passport
⦁ Pan
⦁ Passport size photo
⦁ Latest 3 years ITRs of company and partners/directors
⦁ Company pan(pvt ltd/partnership)
⦁ Minimum 2 yrs of business proof
⦁ Latest 12 months bank statement
⦁ Estimation copy from showroom/car rc(for used loan)
⦁ Present address proof(adhar, voter id, driving licence, passport, HR letter, gas bill, rental agreement on Rs. 100 bond paper, postpaid bill).
⦁ Business address proof(GST/Rental agreement/Labour licence/any govt register document)
The above-mentioned Car loan documents are indicative in nature. Lenders have the discretion to relax or make the eligibility criteria for a Car loan more stringent from one applicant to another
Rate Of Interests For Car Loan
New car loan rate of interests
- HDFC-7.95% Onwards.
- IDFC -7.85% Onwards
- AXIS -7.85% Onwards
- YES-9.25% Onwards
- Federal Bank of India-8.25% Onwards
- ICICI-7.50% Onwards
- IndusInd-7.85% Onwards
- Muthooth-8.25% Onwards
Used car loan rate of interests
- HDFC-13.75% Onwards
- IDFC -13.75% Onwards
- AXIS -13.25% Onwards
- YES-13% Onwards
- Federal Bank of India-14% Onwards
- ICICI-13.25% Onwards
- IndusInd-14% Onwards
- Muthooth-15.25% Onwards
The above-mentioned Car loan rate of interests is indicative in nature. These are all last month interest rates this month might be varies.