Apply for a Car Loan
Please Choose the best suitable car loan as per your income and get amazing facilities with these loans.
Axis Bank Car Loan
Min. Rs. 3500and Max. Rs.5,500
Upto 8 years
HDFC Bank Car Loan
0.40% Max Rs. 10,000
Upto 8 years
ICICI Bank Car Loan
Min Rs. 2,500 Max Rs. 5,000
Up to 7 years
Union Bank Car Loan
0.00 of loan amount
Up to 7 years
A car loan (also known as an automobile loan, or auto loan) is a sum of money a consumer borrows in order to purchase a car. Generally speaking a loan is an amount of money that is lent to an individual, a business, or another entity. The party that lends the money is known as the lender, while the party borrowing the money is called the borrower. When taking out a loan a borrower agrees to pay back the full loan amount, as well as any interest (a percentage of the loan amount, usually calculated on an annual basis), by a certain date, typically by making monthly payments.
Car loans follow most of the same rules and procedures that apply to other loans. In most cases when purchasing a car, a borrower will specifically apply for a car loan; however, a consumer can also use a personal loan (a loan obtained by an individual to use at his or her discretion) for the same purpose.
BENEFITS OF CAR LOAN
- Makes easy to buy car: – As many banks provide up to 100% finance on ex-showroom price, you don’t have to wait long to buy your dream car.
- Flexibility to choose the tenure: – Banks offer car loan for tenure of up to 7 year. You have the flexibility to choose the tenure as per your convenience.
- Loan for buying used car: – Many banks offer loan on used car these days. Although the interest rate will be higher than the interest rate on new car loan and the loan-to-value (LTV) ratio will be lower than the new car loan.
- Interest rate can be negotiated: – Unlike home loan in case of car loan you have the flexibility to negotiate the interest rate with your lender if you have a good credit score and have good relationships with the bank.
- No collateral required: – You don’t have to put any collateral to avail the car loan as your vehicle will act as a security with the bank and in case you fail to make the payment, the bank has the rights to seize the vehicle and sell it off to recover the funds.
- Flexibility to choose the payment mode:– You can choose to pay through post-dated cheques or use the auto debit facility where your equated monthly installments (EMIs) will be automatically deducted from your bank account.
- Flexibility to choose the fixed or floating interest rate option: – You can choose the type of interest rate whether fixed or floating. The interest rate will depend on the type of interest rate you are choosing.
You will need the following documents while applying your car loan
- Duly filled application form
- Know your customer documents – any one identity proof (Voter Id, passport, ration card) and any one address proof (electricity bill, phone bill, passport)
- Income proof- latest salary slip
- At times bank may also ask for employment stability proof
FACTOUR AFFECT CAR LOAN INTEREST
- It will depend on your credit score. You can negotiate with your lender for a lower interest rate if you have a high credit score.
- The tenure of the will not only decide your total interest outgo but the interest rate. Generally banks charges higher interest rate in shorter tenure loan and lower interest rate on longer tenure of loan.
- Car age and model will also one of the factors that is taken into consideration while deciding the car loan interest rates.
STEP TO APPLY FOR CAR LOAN
Step 1: Choose your car
Step 2: Apply for the loan
Step 3: Finalize the loan
Step 4: Submit documents
Step 5: Drive away!
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