Car Loan

Car Loan

Car Loan Trends for March / 2015 –

 

Festival Season begins & banks starts to luring customers towards the branches by offering lowest interest rate deals on car loans. (SBI, Dena Bank & PNB) change / cut its interest rates to 10.55%, 10.25% & 10.65% respectively.

Special offers on Cars

On time to time basis Banks have tie ups with automobile / car manufactures and they give discounts via lower rates.

The Latest & best offers on cars by banks and Vehicle Companies:

  1. SBI offers 10.40% (for women) & 10.45% (for others) rate of interest on all tenures to new car loan customers.
  2. On a purchase of any vehicle from Tata Nano range, enjoy maximum advantages / benefits of up-to Rs. 50 thousand.
  3. Axis Bank offers 11.50% interest rate on car loans.

Quotes are totally free for customers

For EG: If you take a car loan of Rs. 4 lakhs for 4 yrs. and at rate of 10.00%.

Your EMI are Rs. 10,145 and by paying for 4 yrs. you will give an additional of Rs. 86,961 as interest. So if you’re okay to pay that extra amount, go for the car loan.

To check how much you’re paying extra / additional, check rate of interest and calculate EMI through Our calculator.

The other function is that how much Bank is prepared / ready to give you- How much car loan can I get?

Banks to give car loan see your income and ability to pay and also see what is the total value of the car. So banks give (80 to 85%) value of the car but also check whether you have income and enough surpluses to pay the (EMI) every month.

To figure out your ability to pay car loan – Banks check what your income is and what the other Emi you are paying are.

They deduct the Emi and on the rest disposable income can give you (50 to 60%) up-to you income.

For E.g.

Income – 30000 per month

Existing EMI – 8000, So Net income=22000, so your EMI, can go up-to 60% of 22000 which is then divided by EMI, per lac and hence your loan amount is identified.

Now when you know how much you want to pay extra / additional for Car loan and how much an average you can get, it is important to pick the best Bank.

 

The Banks Giving Car loans in India are as follows :

HDFC Bank Car Loan
(HDFC) Provides a Quick & Easy car loan with Easy Documents, (EMI) Options and Low Interest Rates…
SBI Car Loan
Lowest rate of interest, Low process fee, processed through speedy / fast delivery channels with total transparency…
ICICI Bank Car Loan
Compare rate of interest, (EMI), Documents and Eligibility for (ICICI) Car loan. Apply on-line for car loan…..
Axis Bank Car Loan
Compare and Choose rate of interest, Documents, (EMI), and Features of Axis Bank Car Loan…
Kotak Mahindra Car Loan
Flexible schemes to suit your requirements / needs, hassle-free / simple documentation and fast processing…
Bank of India Car Loan
Get Details on Eligibility, (EMI), rate of interest, Documents, Eligibility of (BOI) Car Loans…

How to choose / select which is the best Bank in above to get Car loan

These are the points of comparison

  1. Rate of interest charged by Banks
  2. Process fee charged by Banks.
  3. Pre-payment Charges in case you’ll afford to pay earlier.

So if you multiply the (EMI), per month that you just get from Bank and add the processing fee and deduct the loan amount , you will get to know how much extra / additional you are paying for the loan and

Which is the cheapest for you.

Are the Car loan interest rates are different for various people?

Yes Banks offer preferences to certain set of customers for lower interest rates & fees.

The factors are:

  1. Its gives lower rates who have the salary accounts with the same Bank.
  2. It gives lower rates to employees of top 5000 firm / companies in India.
  3. Based on your income per month you might get some waivers or on the total loan amount you may get cheaper rates.

How does Cibil & Credit Bureau effect my application?

Yes, your car loan application can be rejected if your credit score isn’t good. There are few things that you should know. A cibil or credit score of higher than 750 will get you approval from all Banks. From (650 to 750) there will be certain Nbfc who may be able to give you loan.

If you haven’t taken any credit card or loan your cibil score is 0 and there will be less Banks to provide you loan at that time and best is to approach the bank where you have account.

If you have applied and have got rejected your cibil score and it’s your first loan then your score is -1 and most Banks will not offer you loan.

Special offers on Cars

On time to time basis Banks have tie ups with car manufactures and they give discounts via lower rates.

The recent such offers are

  1. 0 % Foreclosure charges on new car loans post completion of 2 yrs. on Maruti Hyundai Toyota and Honda Cars.
  1. Special Schemes on Renault Duster, Mahindra XUV 500.
  1. Discount Schemes on Hyundai Cars up-to Rs.150000

List of Documents needed / required for Car Loan in India

Car loan Documents needed / required for Eligibility for car / auto loans in India. Various documents establishing your I.D proof, Residence proof & Income proof are required / needed for a loan. But, the documents pertaining to the car, new or old are very important. So even if you are eligible for a car loan, with-out proper car documents you can’t get a loan.

List of Documents needed / required: –

Particulars Salaried Individual Self-Employed Individual Partnership Firm Private / Public Ltd Co
Age Criteria The applicant should be above 25 yrs. old at time of application, and up-to 58 yrs. of age at time of maturity of the loan Any proprietor, partner, professional or director above 28 yrs. but below 65 yrs. at the time of the loan maturity.
Limited companies / firms should have been in existence for at least 3 yrs.
Income Criteria Gross annual income of at least amount of Rs.4lakhs Gross annual income of at least amount of Rs.2.5lakhs Firm should have a minimum PAT (profit after tax) of Rs.2.5lakhs Minimum PAT (profit after tax) of Rs. 2.50 lakhs
Stability The total employment stability should be more than 2 yrs. and current employment stability of minimum 1 yr. Business stability should be more than 3 yrs.

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