(car loan, bike loan, interest rate car loan, NBFC CAR LOAN, BANK CAR LOAN, SBI CAR LOAN, HDFC CAR LOAN, ICICI CAR LOAN, BOB LOAN)
When you want to buy a car, you can easily decide whether you want a hatchback, SUV, manual transmission or autodrive, as well as which engine will be suitable for it, there are many tools available online to decide all this. go. But the most challenging task is to decide the best lender with the most affordable car loan.
Today hundreds of lending companies in India offer different types of car loans but the challenge before us is which lender will be the cheapest?
Everyone has a dream to have a car, but we have to think a lot before buying a car. Every aspect related to the car has to be considered. We can choose a good car but we face a challenge in choosing a suitable lender.
Most of the car loans were provided by popular or popular banks and NBFCs, but currently car loans are being provided with financing options directly through vehicle dealers who are affiliated with these financial organizations.
If you are thinking of taking a car loan, then you have to keep many factors in mind to get the suitable interest rate, loan terms.
In this article, we will discuss some important points related to car loans. Hope this article will be helpful for you.
Know what are the essential conditions/conditions of Car Loan
Age – Between 18 to 75 years
Income- Minimum Monthly Income ₹ 20000
1 year employment and transaction history.
Applicant must be salaried or self-employed.
Important Documents For Car Loan | Documents Required for Car Loan
We are here to tell them about the documents which are asked by most of the lenders.
application.
KYC documents.
Photo.
Identity Card (Aadhaar Main).
Address proof.
Bank details.
income certificate.
Latest Salary Statement, Form No. 16.
Income Tax Return of last 2 years.
Business Ownership Certificate.
Employment stability proof.
Partnership deed letter signed by the partners.
Resolution by the Board of Directors.
Memorandum and rules of the organization.
Some of the main factors affecting interest rates. Interest Rate Par Effect Dalne Wale Factors
1.Income
Regular and high income earners get concession in interest rates. Lenders offer them concession in interest rates. Banks or lenders do not offer concession in interest rates on loans to the self-employed as compared to the salaried people.
2.Credit Score
Credit score refers to the history of loan challenge taken by you in the past. Hence your credit score affects your loan.
3. Age of the applicant
The age of the applicant is also very important in the car loan because if the applicant is young then he can repay the loan for many years but if the applicant is older then he will find it difficult to take the loan, so age also affects the car loan to a great extent. .
4. Period of loan
The tenure of the loan affects the interest rates. The longer tenure you choose, the more interest you will have to pay, so choose a tenure that gives you the optimum interest rate.
5.Vehicle Model and its Age/Vehicle Model
The model of the vehicle and its weight play a major role in determining the interest rates of car loans. Popular and popular car makers have low interest rates on new cars, while the interest rates on old cars are high because the car prices decrease with time.
6. Employment and Employer Type
Your employment has an impact on your loan. If you are a government employee or an employee in a bank or a reputed company, then you get a lot of benefit in interest rates and loan is also easily available.
7.Relation between you And Lender
If you have a past relationship with a bank or NBFC or you have a long-term relationship with it, then the bank maintains your credit record so that the bank is comfortable with your transaction. The bank is committed to providing interest rates to its old and regular customers.
8.Co-applicant/Co-applicant
If you want to take loan at low interest rate then you can apply with co-applicant i.e. income of two people will increase repayment capacity so that loan can be repaid in short period and interest rates will also be low.
9.Down Payment/Dawn Payment
The amount of the down payment affects your loan. If you make a high down payment while buying a car, then you will need a loan for a lesser amount, on which you can get the best interest rate. However, banks also give 100% loan of the ex-showroom price of the vehicle. But if we make more down payment then we have to take loan on the balance amount which can fetch lower interest rates.
10.Current Loans or Liabilities/Current Loans
If you currently have a loan going on and you apply for another loan, your repayment capacity will be limited. If your existing loan is in the final stages of repayment, then you will not have much trouble in getting another loan. But if your loan is still enough, then your chances of getting the loan will be very less.
Keep these things in mind before taking a car loan
1.Determination of EMI
You have to determine the monthly EMI on the loan amount you take, for this you have to clear the monthly budget. It is only after you calculate your monthly budget that you decide the EMI, which is essential to determine your repayment capacity.
2. Have a good credit score / Credit card Ka Score
Your credit score mainly affects the interest rates on your loan, so before applying for the loan, make sure that you have a good credit score. The higher your credit score, the higher your chances of getting the loan facility.
3.Car Insurance
Car insurance is a mandatory component in India. Car insurance is decided according to the model of the car and the age of the car. Before taking a car, find out a good and annual insurance plan so that later you will be comfortable in determining your EMI while taking the loan.
4.Maintenance/maintenance
We all know that the bigger the vehicle, the more maintenance will have to be done, the maintenance and repair of the car is very expensive. While buying a car, you must know in detail about the guarantee and warranty that comes with it and also know about the free features available with the car.
car loan prepayment
This means that you become debt free by depositing your loan balance before the end of the loan tenure. There is a fixed monthly EMI to repay the car loan but you can prepay the loan if you want to deposit the balance before the stipulated tenure.
However, this facility is provided by most of the lenders along with penalty charges. You can find out about this in the loan terms before taking your loan.
Car Refinance
This implies an additional loan taken by you to pay off the rest of your car loan. This option comes in handy when you can refinance your car loan when the current interest rates are getting significantly lower with a longer tenure. This gives financial relief to the borrower.
To refinance your car loan, you choose another lender that can help you save your money at lower interest rates.
How to get car loan from any bank or NBFC?
1.Bank to Car Loan
If you want to get 7 from your existing bank of which you are a customer, then the bank will inform you about various plans and injuries. The bank will give you a quote and agreement letter which you will then give to the dealer or the car dealer, which will save you less time in signing the contract.
If you do not want to delay in getting the loan, you can apply online to the bank for pre-approval wherein you will also have to provide the card details.
Before granting the loan, the bank will conduct your credit check which may be of a difficult level. With which your loan amount and credit report will be reviewed. The bank will fix the interest rates according to the age, model, weight of the vehicle, i.e. new cars may get lower interest rates and old cars are likely to have higher interest rates.
2. Car Loans from NBFC Dealers
NBFCs or dealers act as a lending bank. Which have their own terms and conditions. The dealer will assist you with your car loan. After selecting your car, find a good dealer.
The dealer makes you fill the application form, be sure to analyze the terms and conditions before applying. Most of the lenders are ready to offer cheaper interest rates on new cars.
Nowadays there are some specialized finance dealers who can provide you loans irrespective of your bad credit score. But these loans have high down payment and are also very risky.
How much interest is charged on car loan?
Different banks give loan on car loan at different interest rate/interest rate. By taking a car loan from Indian Overseas Bank, you can take a loan from 7.55 percent. The Yes Bank Car loan interest rate is 7.71 percent. IDBI Bank Car loan Loan is being given at the rate of 7.35. Axis Bank is offering ‘Car Loan’ at the rate of 7.45 percent.
How much EMI will come on the given loan, we can find out with the help of EMI Calculator.
Banks which offer chipset interest rate dete Dete Hain on Car Loan.
| BANKS | RATE OF INTEREST |
| 1.SBI BANK | 7.5% |
| 2.BANK OF BARODA BANK | 7.25% |
| 3.CANARA BANK | 7.7-9.9% |
| 4.HDFC BANK | 8.8-10% |
| 5.ICICI BANK | 7.9-8.80% |
(car loan, bike loan, interest rate car loan, NBFC CAR LOAN, BANK CAR LOAN, SBI CAR LOAN, HDFC CAR LOAN, ICICI CAR LOAN, BOB LOAN)
1. Is collateral or guarantee required in CAR loan?
In a car loan in India, the vehicle itself acts as a guarantee, so that the lender does not ask for additional guarantees. But you may need a guarantor if your income is not up to the lender’s parameters.
2. What is the maximum tenure for Car Loan?
Car loans in India are mostly made available for a tenure of 1 year to 7 years.
3.What is Top Up Car Loan?
Top Up car loan is the only way to take a loan against an existing car loan in case of emergency. Many lenders offer top up car loan against their car loan. It requires minimal paperwork.