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Car Loan

Want to drive your dream car but don’t have the funds for it?
Don’t worry!

Car Loan can help you in achieving this dream today.
Apply for a car loan with us & with a few EMI’s, become the owner of your own set of wheels! ?

 

Car Loan is a Secured loan given by banks against the car you want to own.

Car Loan is offered to individuals who wish to use the loan amount to buy a car. The bank generally transfers the loan amount to the auto car dealer you want to buy the car from. The loan amount raised through Car Loan would be transferred directly to the car dealer as asked by you.

In Car Loan, the car is mortgaged to the bank/lender as a security till the full repayment of the loan. The bank or financial institution will hold the title or deed to the property till the loan along with the interest due on it has been paid back completely.

 

Characteristics of Car loans

A Car loan is a great way to drive your dream car without having to make the complete payment upfront. Some other features which make a car loan tempting are:

✔ Flexible contract terms and comfortable tenure of loan i.e. up-to 7 years
✔ Competitive and attractive rates of interests
✔ A tax deduction may be applicable if the vehicle is to be used for business purposes
✔ Almost everyone with a Permanent Income can apply for a car loan
✔ Some banks offer up to 100% of car finance on ex showroom price and generally up to 85% of car finance on ex-showroom price is available.
✔ Very low processing fees and prepayment charges.

Check your Eligibility for a Car loan

The certain factors that determine your eligibility for a certain loan are:
✔ Age
✔ Kind of employment
✔ Income
✔ Period of employment
✔ Previous running EMI’s and CIBIL Score

 

Car loan interest rates can be different for different users based on some factors. Some of these factors are:

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

In India, we have 35 corporations for financing Car/Auto loans. Let us take a look which banks are the favorites of Indian borrowers when it comes to Car Loans:

Market share of major banks in Car/Auto Loan category:

Banks  Market Share in Car Loan
 HDFC Bank  26%
 SBI  22%
 Kotak Mahindra Bank  16%
 ICICI Bank  14%
 Axis Bank  10%
 Others  12%

CAR LOAN INTEREST RATES

Want to drive your dream car but don’t have the funds for it?
A car loan can help you in achieving this dream today. Apply for a car loan  and with a few EMI’s, become the owner of your own set of wheels.

WHY COMPARE VARIOUS CAR LOAN DEALS WITH LOANUNCLE.ORG?

LoanUncle.org is India’s largest loan comparison service. For trusted advice on loans and solutions on your financial needs, you can turn to us. With tie ups with leading banks and financial institutions providing car loans, LoanUncle is your ultimate destination for best deals. Our user friendly website enables you to compare the best offerings in the market and make the best possible choice.

Banks Interest Rates Processing Fee
Axis Bank 11.5% – 12.5% Rs.3500-Rs.5500
Bank of India 10.40% Rs.500 per application
Canara Bank 10.25%-10.30% 0.25% on the loan amount Rs.1000(minimum)

Rs.5000 (maximum)

Dena Bank 10.2%-10.10% Rs.500
HDFC Ltd 10.00% – 12.50% ·         Up to 2.5 Lakhs – Rs. 3220

·         Above 2.5 Lakhs Rs. 4390-5870

ICICI Bank 10.75% – 12.75% Rs.2500-Rs.5000
Indian Bank 9.65% 0.225% of loan amount

Rs.10000 (maximum)

Magma FinCorp. 11.25%-12.00% ·         Up to 2.50 lakhs                 Rs. 3500

·         From 2.51 lakh to 5 lakhs   Rs.4050

·         Over 5 lakhs                       Rs. 4625

Punjab National Bank 9.75% – 11.10% 0.5%
State Bank of India (SBI) Car Loan 9.80% – 17.15 % 0.5%
United Bank Home Loan 12.05-12.55% 0.5%

Minimum – Rs.500

Maximum- Rs.10,000

 

 

MARKET SHARE OF MAJOR BANKS IN CAR/AUTO LOAN CATEGORY:

In India, we have 35 corporations for financing Car/Auto loans.
Let us take a look which banks are the favorites of Indian borrowers when it comes to Car Loans:

BANKS  Market Share in Car Loans
 HDFC Bank  26%
 SBI  22%
 Kotak Mahindra Bank  16%
 ICICI Bank  14%
 Axis Bank  10%
 Others  12%

 

Disclaimer:
Please note that the interest rates given here are based on the market research. To enable the comparisons certain set of data has been reorganized / restructured / tabulated. Users are advised to recheck the same with the individual companies / organizations. This site does not take any responsibility for any sudden / uninformed changes in interest rates. Banks/ Financial Institutions can contact us at update@loanuncle.org for inclusions or updates.

DOCUMENTS REQUIRED FOR CAR LOAN IN INDIA

  • Salaried Individuals:

    • Any of the following identity proof documents:
      • Aadhar Card, Passport, PAN Card, Voters ID Card, Driving License (recent, legible, laminated)
    • Latest salary slip and Form 16 as income proof
    • Any of the following documents as address proof:
      • Aadhar Card, Ration Card, Driving License (recent, legible, laminated), Voters ID Card, Passport Copy, Telephone Bill, Electricity Bill, Life Insurance Policy
    • Bank statement of the previous 6 months
  • Self Employed Individuals (Sole Proprietorship):

    • Any of the following identity proof documents:
      • Aadhar Card, Passport, PAN Card, Voters ID Card, Driving License (recent, legible, laminated), Latest Income Tax Returns (ITR) as income proof
    • Any of the following documents as address proof:
      • Aadhar Card, Ration Card, Driving License (recent, legible, laminated), Voters ID Card, Passport Copy, Telephone Bill, Electricity Bill, Life Insurance Policy
    • Bank statement of the previous 6 months
  • Self Employed Individuals (Partnership Firms):

    • All the following documents as income proof:
      • Audited Balance Sheet, Profit & Loss Account of the previous 2 years, Company ITR for the previous 2 years
    • Any of the following documents as address proof:
      • Telephone Bill, Electricity Bill, Shop & Establishment Act Certificate, SSI Registered Certificate, Sales Tax Certificate
    • Bank statement of the previous 6 months
  • Self Employed Individuals (Private Limited Companies)

    • All the following documents as income proof:
      • Audited Balance Sheet, Profit & Loss Account of the previous 2 years, Company ITR for the previous 2 years
    • Any of the following documents as address proof:
      • Telephone Bill, Electricity Bill, Shop & Establishment Act Certificate, SSI Registered Certificate, Sales Tax Certificate
    • Bank statement of the previous 6 months
  • Self Employed Individuals (Public Limited Companies):

    • All the following documents as income proof:
      • Audited Balance Sheet, Profit & Loss Account of the previous 2 years
    • Any of the following documents as address proof:
      • Telephone Bill, Electricity Bill, shop & Establishment Act Certificate, SSI Registered Certificate, Sales Tax Certificate
    • Bank statement of the previous 6 months

USED CAR LOAN

Used car loan  is the money obtained by an authorized lender or private sources to buy a second-hand vehicle or used car, as it is famously known. Used car loans usually cover 75% amount of the total expense for the car. Some financial organizations also give up to 90% of the value of the car.

Interest rates for used car loans – 2016

Name of the bank – Used car loan Interest Rate

  • HDFC Bank – 14.50% – 17.50%
  • Bank of India – 11.20%
  • State Bank of India – Up to 3 years – 17.10% & Above 3 years – 17.35%

FREQUENTLY ASKED QUESTIONS (FAQS) ON CAR LOAN

Do Car loan interest rates vary from person to person? If so, why?
Banks give lower interest rate if,

  1. Employees who have salary accounts with the same bank
  2. Employees of top 5000 companies of India.
  3. Based on your income per month

How much loan can I get?
The amount of the loan depends upon:

  1. The cost of the vehicle.
  2. The type (standard/premium).
  3. The percentage financing offered.

How long does it take to process the loan after the submission of documents?
If all the required documents are in order, the process becomes fast. The processing will take anywhere between 2 to 7 days.

Can I get a car loan without the submission of income documents?
Yes, under the No Income Proof scheme offered by some banks.

Can I increase the amount of loan that I can take and how?
Yes, you can. By introducing a co-applicant, and clubbing your income with his/hers

Who qualifies as a guarantor?
The guarantor could be your father, mother, son, daughter, husband, brother, sister, son’s wife etc. But make sure these guarantors, should comply with the age and other such norms of the

Can the car loan be paid off, before the tenure is due?
Yes, up by pre-paying your loan amount. Also you may have to pay a small penalty, normally, a percentage of the loan amount that remains outstanding. Some banks however do not penalize you if you decide to pre-pay. So, this aspect has to be taken into consideration when you choose a bank to take loans from.

Can I change the tenure and amount of loan taken after the loan amount has been disbursed?
Yes you can change the tenure and amount of the loan. But this would imply that the interest rate and the amount of installment will change accordingly.

Can I sell my car before I repay my loan?
NO. Your car cannot be sold unless the loan amount is repaid fully. Also, an NOC is required from the banks before you can sell the car.

Are car-accessories also financed?
Most banks do not finance car-accessories other than those which are factory fitted. But, some may finance music-systems and other such expensive accessories.

What is an Exchange Scheme?
Some dealers may offer you an exchange scheme whereby your existing car can be upgraded to a new one. The dealer will purchase your car at a price depending on the model, year and the condition of the car. The value of your old car is then adjusted against the purchase price of the new car. You could also get the balance amount financed.

Will I be financed for insurance and registration?
Mostly, Insurance and registration are not covered by most financiers.

What happens if the car meets with an accident?

  • Firstly, inform the insurance company.
  • A surveyor is sent to assess the extent of damages to the car.
  • Claim is then processed and paid directly to the banks, unless you have taken an NOC from the banks, in which case the payment will be made by the insurance company in your favour.
  • The bank normally gives you an NOC if you are regular in your payments. In case of a complete loss, the bank would receive the payment directly from the insurance company.

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