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CAR Loan | Vehicle Loan 

In today’s life there are many things that have become very common basic needs. Among them car is also a basic need for everyone. It’s moreover a dream for many to have car. Now you can also make your dream come true as car loans are available at affordable interest rates for even middle-class families. These car loans are also known as auto loans or automobile loans. Borrowing some amount of money from banks to buy a car is known as car loan. Car can be brought by depositing down payment and rest of the money can be taken as loan from the respected bank which is providing low interest rates based on the model of the car.

Finance is provided for purchase a car or other vehicles either for personal or business use. In the car loans there will be types of taxes, fees and all. All this includes in the total car loan amount provided to the customer. To know more details about the car loans, follow the post. All the basic, important and required details of many different banks are given below here.

Benefits of Car Loan:

Car loan have many benefits. Some of the benefits for applying for car financing loans in India given below:

  1. Monthly payments can be directly debited from your bank account.

  2. There is a flexibility to choose the tenure as per your convenience.

  3. No collateral required to avail the car loan.

  4. Maximum loan amount can be 100% of on road price of the car.

  5. It helps you purchase a car even if you don’t have all the money for it right now.

  6. Many lenders will offer interest rate based on your credit score so a high score to get you a cheaper loan.

Sources For Finance Car loan :

There are two sources of taking car finance. If you are planning for a car and avail a loan then as a customer you have three options.

1) You can avail a loan from any of the banks.

2) You can avail a loan from NBFC’s which is (Non-Banking Financial Corporation) like TATA Capital, Bajaj Finance etc.

3) You can also get a loan from the car dealer in which, from where you are buying a car, they will provide the loan for lump sum amount of money to buy a car. For which you have to pay back that amount through monthly in EMI format along with the interest to that amount.

Types of Car Loan :

There are several different types of car loan so that every individual will find at least one car loan that is able to meet their requirements:

1. New Car Loan:

A new car loan is taken out to purchase new vehicles generally from dealerships. Many salaried and self employed individuals are looking to get their dream car that getting higher pay packages. Some individuals have the cash in hand and they prefer to purchase a new car on the spot. There are many banks which provide new car loans with low car loan interest rate.

2. Used Car Loan :

Used car loan are taken by the borrower to purchase a used car from either a second hand car dealer or an individual seller. Sometimes people can’t afford to buy a new car and in such cases, going for a used car is the best option.

Eligibility Criteria for Car Loan :

There are some eligibility criteria required to apply for the car loan. One who is going to apply for the car loans have to reach these minimum eligibility requirements as follows.

• The minimum age of the customer should be 18 years and the maximum age should be 75 years.

• Salary of the customer should be minimum Rs.10, 000 per month.

• Car type can be new or used one.

• 3 years total experience in profession/ business.

• 2 years should be in the current post/profession of business.

• Salaried/ self-employed individual/partnership has to apply for a car loan.

Documents Required for Car Loan :

You will need the following documents required while applying for the car loan.

  1. Duly filled application form

  2. Photographs

  3. Identity proof: Voter id, passport, ration card

  4. Address proof: Electricity bill, phone bill, passport

  5. Income proof: Latest salary slip, bank statement, latest ITR

  6. At times bank may also ask for employment stability proof

Fees and Charges Apply for Car Loan

TYPE

CHARGES

Interest rate

7.35% p.a.

Processing fee

Starts from 0.230% of the loan amount

Documentation charges 

Rs.550 plus GST

Prepayment charges

5% on principal outstanding or interest outstanding for unexpired period of loan (whichever is lower)

Charges for late payment of loans 

2% per month on the outstanding instalments

Tenure period 

1 year to 8 years

Cheque Swap charges

Rs.500 per transaction

Cheque bounce charges

Rs.500 per transaction

Statement of account charges

Rs.200 per statement

Prepayment statement charges

Rs.200 per statement

Duplicate NOC/ No due certificate charges

Rs.500 per NOC/NDC

Loan cancellation charges 

Rs.3000 per loan

In terms of sale in India these are the top 25 cars

Maruti Ignis

Maruti Celerio

Maruti S Cross

Maruti Wagon R

Maruti Brezza

Maruti Swift

Maruti Eco

Maruti Omni

Maruti Baleno

Maruti Dzire

Mahindra XUV 500

Mahindra Bolero

Mahindra Scorpio

Mahindra TUV300

Toyota Fortuner

Toyota Innova Crysta

TATA Nixon

TATA Hexa

TATA Tiago

TATA Tigor

Honda city

Hyundai Creta

Hyundai Eon

Hyundai I20

Hyundai Grand I10

 

Best Interest rates for Car Loan :

If you are interested in buying a car through loan and wanted to know the details of the best available interest rates from different banks can check here. Having an own car is not only a dream for many families but it is also a need which serves for transportation. More than a luxury need it became a basic need for the people who travels for long distances. Knowing the correct information before taking a car loan is the knowledgeable thing. Here are the details about the interest rates of the particular banks for car loans.

Important note- Interest rates and the EMI (Equated Monthly Instalments) per lakh depend on the various factors like initial down payment, customer profile and the amount taken towards the loan.

BANKS

INTEREST RATE

AXIS Bank New Car Loan

9.05% to 11.30%

AXIS Bank Pre-Owned Car Loan

14.80% to 16.80%

AXIS Bank Loan Against Car

13.99%

AXIS Bank Balance Transfer and Topup Car loan

15.00%

SBI New Car Loan Scheme

8.00% to 10.75%

SBI Combo Loan Scheme

8.70% to 9.20%

SBI Pre-Owned Car Loan

9.75%

SBI Loyalty Car Loan Scheme

8.70% to 9.5%

HDFC Bank New Car Loan

8.80% to 10.50%

HDFC Bank Used car loan

12.75% to 15.30%

HDFC Bank Loan Against Car

13.75% to 16%

Kotak Mahindra Bank Car Loan

8.00% to 24%

Yes Bank Car Loan

9.25%

ICICI Bank Car Loan

9.30% to 12.85%

IDBI Bank Car Loan

9.30% to 9.90%

RBL Bank Car Loan

12% to 14%

IndusInd Bank Car Loan

10.65% to 15.50%

Bank of Baroda Car Loan

8.85%

Bank of India Car Loan

8.95%

Canara Bank Car Loan

7.75% to 10.30%

Indian Bank Car Loan

8.45%

Punjab National Bank Car Loan

8.9% to 9.35%

Financila products offered by banks:

BUSINESS LOAN

 

CAR LOAN

COMMERCIAL LOAN 

EDUCATION LOAN

GOLD LOAN

HOLIDAY LOAN 

HOME LOAN 

LOAN AGAINST PROPERTIES 

LOAN AGAINST SECURITIES

PERSONAL LOAN

PROFESSIONAL LOAN

TWO WHEELER LOAN

How to calculate EMI of Car Loan:

The mathematical formula for calculating EMIs of Car Loan: 

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where,

P stands for the loan amount or principal,

R is the interest rate per month 

N stands for number of monthly income.

Car Loan Frequently Asked Questions :

1. How much processing fee is charged by car loan?

The processing fee is charged by car loan is starts from 0.230% of the loan amount.

2. What is the minimum and maximum tenure period of car loan?

The minimum tenure period is 1 year and maximum tenure is 8 years.

3. How much loan amount is charges by car loan?

The loan amount charges by car loan are 100% of on road price of the car.

4. Is documentation charges are applied by car loan?

Yes, documentation charges are applied by car loan and it should be charged Rs.500 plus GST.

5. What is the maximum age required for car loan?

The maximum age is required for car loan is 75 years

Last Updated on : 30/Jul/2020

Know More About

Car Loans

You're eligible for a Car Loans if you:


Are legally adult enough to handle it


Have still got it


Get a regular pay check


Make more than a basic buck

Your eligibility depends on:


Earn more than minimum income required


Maximum allowed Car Loans is Rs. 10K to Rs. 45 lakhs


EMIs of other loans loweryour eligibility

Boost your eligibility by:


Pay off your credit card bills


Choose longer tenure loan up to 5 years

Nothing gets done without that paperwork (which we'll happily carry over to the bank for you, no sweat). Here's what you'll need:

  • 1. Photo ID and age proof
  • 2. Signed application form with photograph
  • 3. Residence proof
  • 4. Last 6 months bank statement
  • 5. Documentation for salaried applicants:
    • Last 3 months salary - slips
    • Form 16 or Income Tax Returns
  • 6. Documentation for self-employed applicants:
    • Last 3 years Income Tax Returns with computation of Income
    • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

Car Loans Interest Rates

Updated on 25 Nov 2017

Car Loans Details
Interest Rate (Monthly reducing balance) 9.05% - 11.3%
Processing Fees Varies with bank
Loan Tenure 1 year to 8 years
Pre-closure Charges Varies with bank
Guarantor Requirement Varies with bank

Car Loans EMI Calculator

Loan Amount

|
1L
|
50L
|
100L
|
150L
|
2Cr

Interest Rate

%
|
5
|
10
|
12.5
|
17.5

Loan Tenure

|
1
|
10
|
20
|
25
|
0
|
120
|
240
|
300


Your Monthly Loan EMI


₹24,959