Which is the Best Car Loan in India?
Cars are the sculptures of our everyday lives.”
Everyone wishes to have their own car in which they can go for a long drive, or go on a road trip with friends and family. The car loan helps you to fulfill your wish of buying your own car. In India people believe that having a car is a symbol of royalty and standard. But buying a car is too expensive. The car loans are for those people who want to have their own car and need some financial help for that.
BENEFITS OF CAR LOANS
- Car loans are good for future savings.
- It helps in getting money for the new car and you should not have to use your savings.
- You do not need to have a mortgage.
- The car loan does not demand any collateral as it is a collateral free loan.
- The credit score doesn’t matter.
- You do not need to have a good or perfect credit score for car loans.
- The car has your ownership not the ownership of the bank.
- The car loan procedure is easy and convenient.
TYPES OF CAR LOANS
Car loan is of three types,such as.
NEW CAR LOAN:
New car loan is given by the bank or the lender to the borrower for getting a new car. The borrower could get a new car from the car showroom by this loan. This loan includes all the expenses of buying the new car. The loan tenure given by the bank for this loan is maximum seven year tenure. The interest rate of a car loan per annum is one to four percent. You can buy a car of any model or brand of your choice.
USED CAR LOAN:
As the name states itself, used or pre owned cars are borrowed or buyed by this loan. Only those used or pre-owned cars can be used by this loan which are five years older. If you are going for a used car loan then you should know that the interest rates of this loan are higher than the first type of car loan. The repayment tenure of used car loans is eight to ten years.
LOAN AGAINST CAR:
The loan against cars is for those people who wish to have a new car but they already have one. The borrower has to mortgage the older car for the new one and can get a new car of their desire. The older car acts as a collateral for the new car. The banks in India offer the interest rates for the loan against cars of fourteen to sixteen percent. The repayment tenure is of one to three years after the approval of the loan.
APPLY FOR CAR LOANS
Getting a car loan is as easy as the other loans. In some easy and convenient steps you can apply and get a car loan. Here are the steps of applying for a car loan.
- The first step before going to have a car loan is check your credit score,decide your budget and finalise the car brand and rates.
- After all these went to the bank or lender and asked for the application form.
- Fill the form properly and completely and mention all the information and details asked by you.
- Get all the documents that are required and attach them with the application form.
- Submit the application form.
- Wait for the verification and approval process.
- After verification and approval of the car loan, you will get the cash or loan in your bank account.
ELIGIBILITY FOR CAR LOANS
- The age criteria for the self employed and salary based employees is eighteen and twenty one years respectively.
- The age limit criteria for the car loan is 75 years, which means the individuals who are below 75 can apply for this loan.
- The experience or working time of at least three years.
- Net income should be twenty four lakhs per annum for a salaried employee.
- For a self employee the net income should be at least eighteen lakhs per year.
DOCUMENTS REQUIRED FOR CAR LOANS
- Identity proof such as aadhar card,PAN Card,licence or passport is required.
- Address proof is also asked by the borrower such as residential address electricity bill,telephone bill,or water bill.
- Age proof is also required such as licence or adhar card.
- Income proof is required like salary slip,income tax slip, bank statement,etc.
- Passport size photographs at least three.
- The signature proof is also an important documentation.
- Information of the vehicle or car that you are going to buy by this loan.
DISADVANTAGES OF CAR LOANS
- The GST is also charged by the bank.
- The repayment rates are also tough to repay.
- The insurance of the car is also very expensive.
- Paying the down payment is also difficult for the borrower.
- Large amount of cash can be spent only on one car at a time.
BANKS GIVING CAR LOANS AFTER LOCKDOWN
| NAME OF THE BANK | INTEREST RATES | TENURE/REPAYMENT PERIOD |
| SBI | 9.65% on wards | Up to 7 years |
| ICICI Bank | 10.75% to 12.75% | Up to 7 years |
| Axis Bank | 9.5% to 15% | Up to 7 Years |
| PNB Bank | 9.40% to 9.75% | Up to 7 Years |
| HDFC Bank | 11.50% to 13.75% | Up to 7 Years |
We wish you liked our car loan content. We hope this will help you in going for a car loan.
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