Car Loan
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Car Loan
You can avail a loan from a bank to purchase a brand new car. You have to pledge the car as collateral to avail this loan. You can also avail a loan for a pre-owned car.
Secured car loan: Your car is the collateral for the loan. If you do not repay your car loan, the bank can repossess and sell the car to get the money back.
Unsecured car loan: You avail an unsecured car loan to purchase a used car. You need not offer the car as security for the loan. You are sanctioned a smaller quantum of loan than a new car loan, and at a higher interest rate.
Why avail a Car Loan?
Interest Rates
Banks offer you a car loan at competitive interest rates. Women customers are offered a discount on interest by most banks.
Higher Loan Margin
Banks are willing to finance 90-95% of the cost of the car. Many banks lend for the full value of the car.
Easy Documentation
You can walk into the bank branch and bank officials would willingly answer your loan queries. Documentation is fast and convenient.
Special Discounts
Banks offer attractive interest discounts for car loans availed in the festive seasons.
Eligibility criteria to avail a Car Loan
Salaried Person
- Age: You need to be at least 25 years of age and a maximum of 60 years at maturity of the loan.
- Income: You need to have a gross annual Income of at least INR 3 Lakhs a year.
- Employment stability: You need to have more than 2 years of work experience, and you should be in your current job for at least a year.
Self-employed individual
- Age: You need to be at least 25 years of age and a maximum of 65 years at maturity of the loan.
- Income: You need to have a gross annual Income of at least INR 2.5 Lakhs a year.
- Business stability: Your business should have more than a 3 year track record of existence and profits.
Documents Required To Availing a Car Loan
If you are salaried
You need an address proof such as a Ration card, Driving license, House Tax chalan, Housing Society bill, Voters card, Passport, Telephone bill, Electricity bill, Water bill, Landline bill and a Credit Card Statement.
You need an identity proof such as a Ration card, Passport, PAN Card, Voter Identity card, Driving license, Employee ID issued by Government of India/ PSU/ Limited companies, Local Panchayat Identity card, and a Notary certification with a Photograph.
You need the latest salary slip with the Form 16 document as an income proof.
- If you are salaried
- You need an address proof which shows the location of your firm/business.
- You need an identity proof such as a Passport, PAN Card, Voters Identity card, Driving license, Latest Sales Tax assessment order or a Sales tax registration certificate.
- You need the latest Income Tax Return as an income proof.