Car Loan


A car loan is for a lesser tenure of up to five years, and the car is hypothecated to the lender for the duration of the loan. Therefore the age of the applicant is not that important a factor, and anyone between the ages of 21 and 65 can apply. The two factors that the lenders look at are the number of years in the current job and the number of years resided at the current address. The interest rate and the maximum loan amount permissible would depend on the repayment capacity and the credit history of the applicant.

Bank/Lender Name Car Loan Interest Rate Loan Processing Fees
SBI 9.25% onwards 0.50% of Loan Amount +ST
Min: Rs.950.00 +ST, Max: Rs.9100.00 +ST
HDFC Bank 9.35% onwards Rs.2825 to Rs.5150 (depends on the loan amount)
ICICI Bank 9.55% onwards Rs.2500 to Rs.5000 (depends on the loan amount)
Axis Bank 9.50% onwards Rs.3500 to Rs.5500
IDBI Bank 9.95% onwards NIL
Punjab National Bank 9.25% onwards 1% of the loan amount. (Max-Rs.6000)
Bank of India 9.25% onwards Rs.500/- plus S.T. or 1% of loan amount. Min: Rs.500 and Max: Rs.10,000
Syndicate Bank 10.1% onwards Up to 2 Lakhs: Rs.1.25 per thousand. Minimum: Rs.125/-
Above 2 lakhs: Rs.200 per lakh.

What Is A Car Loan?

A car loan is an advance made by a bank in order to purchase a new vehicle or a used vehicle. You are required to come up with a certain part of the car’s cost, usually around 10-20%, and pay to the dealer. The bank pays the remaining part to the dealer on your behalf, and that amount is repaid by you by paying equal monthly instalments called EMI. The car stays in the name (hypothecated) of the bank till the time the loan is not closed, and after the closure of the loan, the hypothecation and ownership is transferred to you. A car loan allows you to start owning and driving a car when you want, instead of waiting to save the money and then buy. With the rising costs of cars, that can take quite some time, and a car loan allows you the pleasure of owning and driving your favorite model of vehicle much faster.

What Factors Influence Your Eligibility?

Your income and age are the two most important factors which determine your car loan eligibility. For a salaried individual, the category of employer also helps improve the loan eligibility amount, even if the salary is a little lower. On similar lines, if you maintain good balances in your bank accounts and enjoy a good relationship with your bank, it can help you reduce the rate of interest. Both salaried and self-employed persons are eligible for car loans, but a certain minimum tenure in your current job or present line of business is sometimes asked for. The credit history also is an important factor in determining eligibility as well as the rate of interest.

What Are The Useful Things To Know While Looking For A Car Loan?

When you compare different car loans, you usually look at the rate of interest, tenure of loan and the loan amount approved. But there are some other terms you need to understand while you apply for a car loan. The ex-showroom price of a car is its price without the mandatory road taxes etc., while its on-road price is the price inclusive of tax amount. You need to be sure which of these two prices the bank would calculate the loan amount on. Most banks charge a processing fee for processing your application, and some banks also charge a prepayment fee in case you want to clear off the loan before its tenure.

How Can One Finance Help You?

We will be a trusted loan advisor to you in your quest for buying your car. We have tie ups with all major banks, and will be able to use these relationships to fast track your car loan application. But before that we will help you compare different car loans and zero in on the best one for you. We will collect the car loan documents from you and submit it to the bank, or submit online in case you wish to apply for car loan online. You don’t need to worry after that either, and we shall get the disbursement done quickly, ensure that the registration of your vehicle is completed, and hand over your dream car to you in a matter of days.

What Is A Car Loan?

A car loan is an advance made by a bank in order to purchase a new vehicle or a used vehicle. You are required to come up with a certain part of the car’s cost, usually around 10-20%, and pay to the dealer. The bank pays the remaining part to the dealer on your behalf, and that amount is repaid by you by paying equal monthly instalments called EMI. The car stays in the name (hypothecated) of the bank till the time the loan is not closed, and after the closure of the loan, the hypothecation and ownership is transferred to you. A car loan allows you to start owning and driving a car when you want, instead of waiting to save the money and then buy. With the rising costs of cars, that can take quite some time, and a car loan allows you the pleasure of owning and driving your favorite model of vehicle much faster.

What Factors Influence Your Eligibility?

Your income and age are the two most important factors which determine your car loan eligibility. For a salaried individual, the category of employer also helps improve the loan eligibility amount, even if the salary is a little lower. On similar lines, if you maintain good balances in your bank accounts and enjoy a good relationship with your bank, it can help you reduce the rate of interest. Both salaried and self-employed persons are eligible for car loans, but a certain minimum tenure in your current job or present line of business is sometimes asked for. The credit history also is an important factor in determining eligibility as well as the rate of interest.

What Are The Useful Things To Know While Looking For A Car Loan?

When you compare different car loans, you usually look at the rate of interest, tenure of loan and the loan amount approved. But there are some other terms you need to understand while you apply for a car loan. The ex-showroom price of a car is its price without the mandatory road taxes etc., while its on-road price is the price inclusive of tax amount. You need to be sure which of these two prices the bank would calculate the loan amount on. Most banks charge a processing fee for processing your application, and some banks also charge a prepayment fee in case you want to clear off the loan before its tenure.

How Can One Finance Help You?

We will be a trusted loan advisor to you in your quest for buying your car. We have tie ups with all major banks, and will be able to use these relationships to fast track your car loan application. But before that we will help you compare different car loans and zero in on the best one for you. We will collect the car loan documents from you and submit it to the bank, or submit online in case you wish to apply for car loan online. You don’t need to worry after that either, and we shall get the disbursement done quickly, ensure that the registration of your vehicle is completed, and hand over your dream car to you in a matter of days.

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22 Mar 18