Car Loan

Buy The Car You Want

Car Loan

The moment you decide to buy the car of your dream, you start looking at the offers of several lenders in terms of interest rates. It indeed is a good thing to do as you get an idea of the EMI, total interest outgo and the overall payment over the loan term, which is upto 7 years and 5 years for new and used cars, respectively.

Type Of Car Loan

New Car Loan

As the name suggests, a new car loan can be used to purchase a brand new car straight out of the showroom. Banks offer new car loans at an interest rate of 9-14% p.a. for a loan tenure of 1 to 7 years. New car loans are available for most makes and models of cars in the market

Used Car Loan

Banks and NBFCs offer used car loans up to 80-85% of the price of the car at an interest rate of 12-18% p.a. for a loan tenure ranging from 1 to 5 years. Used car loans can be used to purchase pre-owned or used cars that are less than 5 years old or doesn’t exceed more than 10 years at the time of loan maturity.

Loan against Car

When one is in dire need of funds, he or she can pledge his or her old car as collateral in order to obtain sufficient funds to purchase a new car. This is known as Loan against Car. Some banks in India offer loan against car up to Rs.10 lakh or 100% of the value of the car at an interest rate of 14-15% p.a. for a loan tenure of 1 to 3 years. For instance, if you have a bad credit score, you can pledge your old car to the bank as collateral to obtain some much-needed funds.

Eligibility

Age should be minimum 21 maximum 60.

Minimum Net Monthly Income: Rs 15,000

Applicant should have the bank specified credit score.

Old / New Car Loan Document's

. Adhar card
2. pan card
3. Election Card
4. LightBill Latest
5. Passport Size Photograph – 2
6. Show Room – Asstimate (New Car Loan)

For Salaried Class

     – 3 Month Payslip
     – 6 Month Bnak Statement
     – Job ID Card

For Business Class

     – Business Proof
     – 1 Year Bank Statement
     – 3 Year Income Tex Return.

7. RC Book (Old Car Loan)
8. Insuranse Paper (Old Car Loan)
9. NOC – From Bank (Old Car Loan)
10. Saller Bank Check Copy (Old Car Loan)