We have "Car Loans" for you
We have "Car Loans" for you
In today’s life there are many things which 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 an 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.
You can also call it as financing for taking a car loan. 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.
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 Finserv etc.
3) You can also get a loan from the auto dealer in which, from where you are buying a car, they will provide the you 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.
Some important information to know before you apply for an automobile loans like car loans-
Now a days, Car loan are easily sanctioned instead of other loans. Many banks have levied many various limitations who are searching for car loans. The interest rates have come down to reasonable prices for making affordable for all the sections of the society.
About Interest Rates-
The interest rates will be depended upon the credit score of the customer, income of the customer, the type of vehicle/ Model for which customer chooses and the tenure of the loan, the interest rates will be decided. As the tenure of loan increases interest rate decreases. You can also be able to refinance your vehicle loan or car loan for getting the better rates. If you want to decrease your monthly EMI payment then you can make on time payments by which your credit score improves.
Many lenders offer you the loan for long term periods such as even for 84 months also. But taking a car loan for such long term periods are not so good idea as cars depreciate rapidly. It’s better to pay off the car loans as quickly as possible. The best idea is to take the car loan should be for 60 months terms for new cars and for used cars it should not be more than 36months. Spending more on loan than a car is the financial risk also.
Credit Pull on loans-
To pre-qualify your loans some of the institutors will do a soft pull on your credit. With this soft pull there is no guarantee that you will get the exact quoted rate amount and also that you will be approved for loan. Before the finalization of the loans a hard pull of credits are necessary in all cases. Some lenders run a full credit check; these will temporarily decrease some points on your credit score.
If you have applied for a loan through many lenders at a time you can be easily differentiate the most competitive interest rates. This also helps you in getting contacted with the multiple lenders which will be helpful for you in purchasing the automobile loans anytime. There are some restrictions for the lenders work only with in the network of dealership. To buy cars from the private sellers, others will not lend money. The lenders will give you a loan with the proper amount with the decided interest rate. This will be done after the finalization of the loan. This loan amount will be given in many different and available ways such as,
• A no obligation Cheque
• Direct deposit to your bank accounts.
BEST INTEREST RATES FOR CAR LOANS-
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 the car loans.
Interest rates and the EMI (Equated Monthly Installments) per lakh depend on the various factors like initial down payment, customer profile and the amount taken towards the loan.
• Axis Bank charges from 9.05% to 11.30% interest rate and the EMI per one lakh is between Rs.1611/- – Rs.1728/-.
• Bank of Baroda BOB charges from 8.40% to 10.15% interest rate and the EMI per one lakh is between Rs.1579/- to Rs.1668/-.
• Bank of Maharashtra charges from 8.85% interest rate and the EMI per one lakh is between Rs.1601/- to 1640/-.
• Canara Bank charges 8.05% to 8.65% interest rate and the EMI per one lakh is between Rs.1561/- to Rs.1591/-.
• Central Bank of India charges 8.40% to 8.65% interest rate and the EMI per one lakh is between Rs.1579/- to Rs.1591/-.
• Corporation Bank charges 8.50% to 9.00% interest rate and the EMI per one lakh is between Rs.1584/- to Rs.1609/-
• HDFC Bank charges 8.80% to 9.90% interest rate and the EMI per one lakh is between Rs.1599/- to Rs.1604/-
• ICICI Bank charges 9.00% interest rate and the EMI per one lakh is approx. Rs.1609/-
• IDBI Bank charges 8.85% to 9.45% interest rate and the EMI per one lakh is between Rs.1601/- to Rs.1632/-
• Indian Bank charges 9.00% interest rate and the EMI per one lakh is approx. Rs.1609/-
• Union Bank of India charges 8.60% to 8.70% interest rate and the EMI per one lakh is between Rs.1589/- to Rs.1594/-
• Oriental Bank of Commerce charges 8.05% to 8.50% interest rate and the EMI per one lakh is between Rs.1561/- to Rs.1584/-
• Punjab National Bank charges 8.55% to 9.00% interest rate and the EMI per one lakh is between Rs.1586/- to Rs.1609/-
• State Bank of India charges 8.65% to 9.35% interest rate and the EMI per one lakh is between Rs.1591/- to Rs.1627/-
• UCO Bank charges 8.60% interest rate and the EMI per one lakh is approx. Rs.1589/-
• Bank of India charges 8.60% to 9.00% interest rate and the EMI per one lakh is between Rs.1589/- to Rs.1609/-
• United Bank of India charges 8.70% interest rate and the EMI per one lakh is b approx. Rs.1594/-
• Syndicate Bank charges 8.75% to 9.00% interest rate and the EMI per one lakh is between Rs.1596/- to Rs.1609/-
• For all the above banks the loan tenure is of maximum 7 years.
The above details of the interest rates get changes periodically. So we have to keep on checking the latest interest rates for the preferred bank through which you are applying loan.
Eligibility Criteria for Car Loan-
There is some eligibility criteria required to apply for the car loan. One who are 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 per month should be minimum ten thousand (10,000).
• Car type can be new or used one.
• How many years of experience in profession/ business?
• Two years should be in current post/profession of business.
• Customer can be salaried/ self-employed in partnership/ individual have to be for three years.
Checking eligibility calculator for car loan-
The eligibility of car loan is depended on various factors. The eligibility calculator helps every individual who are applying for the loan to know or to get the approximate idea of the amount. This will let you know that are you eligible to apply for the loan or not.
This eligibility calculator considers the factors focusing on income. By this calculator the customer will easily get to know the lenders who can give him the car loan which he is expecting the particular amount depending on his eligibility conditions. Checking the criteria before only by using eligibility calculator helps you in saving the time and money as you need not to approach any lenders for knowing the requirements.
The calculator provides the complete details of your interest rate. How much money should be paid for particular tenure of loan. After how much down-payment, the loan will be disbursed. The more down-payment you do, the less EMI will be calculated based on the tenure of the loan. As car loan comes under the luxuries good, the GST will be much while compare to other vehicles.
Knowing the eligibility for used car loans-
The loan eligibility will be slightly different for the used car than a new one. This difference is because the value of the car is lower than that of the original selling amount. Hence the minimum income requirement is also low. The percentage of amount sanctioned from the bank for the used car loan is low while compare to new car.
Here are the details of the different top banks details which show the eligibility requirements to apply for a car loan.
Eligibility for SBI Car Loan-
The customers who are planning to avail car loan from the SBI bank should have minimum age of 21 years and maximum age should be 65 years. Below are the different categories to apply for the loan.
• The state/ central Government regular employee, public sector, private company or from a reputed industry who are having net annual income or co applicants if any, then their together amount should be 3 lakhs. The maximum loan amount provided to these employees would be 48 times of the net monthly income.
• For the professional/ self-employed customers/ businessmen/ proprietary/ partnership persons who are tax assesses whose income criteria with nest profit or gross taxable income with 4 lakhs per year. For them the maximum loan amount will be 4 times net profit or Gross taxable income as per ITR. This loan amount will be fixed after adding back depreciation and the repayment of the already existing loans of the customer.
• For the persons who earn from agriculture of allied activities the income criteria is to be as the net annual income of the customer or the co applicant for the loan together should be 4 lakhs. Maximum loan amount providing will be three times of the Net annual income.
Car loan Eligibility by HDFC Bank-
• The salaried applicants who are applying for the car loans from the HDFC bank should be minimum 21 years of age and maximum 60 years of age. Their income should be at least Rs.1,80,000 per year. This amount is including the amount of co applicant or spouse. They should submit their latest slip of salary which is form 16 as a proof of income. The stability of the employment should be 2 years at the same place and minimum 1 year at the current job.
• Applicants who are self-employed applying for the car loans from the HDFC Bank should be between the age limit of 21 to 65 years. They should earn atleast Rs.60,000/- per year. If you are planning to buy a standard car then you should have atleast 1 lakh salary per year to get the car loan. Should submit their latest ITR as the income proof. These applicants should be in same business for atleast two years to know the employment stability.
• The applicants who are self-employed but non individuals have no age limit. Their income should be atleast 60,000 per annum. And if planning to buy a standard one then should have 1,50,000/- income. They should submit their latest 2 years ITRs as their proof of income. To show the employment stability these applicants must have to show a minimum turnover of Rs.4,50,000 per annum.
Car Loan Eligibility by Axis Bank-
• If you are a salaried employee and applying for a car loan from the axis bank, you should have your age limit between 21 years to 70 years. The applicants should earn Rs.2.4 lakhs per year. They have to submit their Form 16 and the latest salary slip. The employment stability should be they have to work in the same place for 1 year continuously.
• If the applicant is employed individual they you should be having your age limit between 18 years to 75 years of age. They have to earn Rs.1.8 lakhs per annum. As the income proof you have to submit latest ITR. And they have to be in the same business line for three years to give their employment stability proof.
• If the applicant is Self-employed Non individual, no age limit is there for them. Their income should be Rs.1.8 Lakhs per year and as the proof of income they have to submit their latest 2 year ITRs. These applicants should be in the same business line for three years which shows their employment stability.
REQUIRED DOCUMENTS TO APPLY FOR THE CAR LOAN-
Here are the basic details about the list of the required documents to apply for the car loan.
• Age proof
• Application form
• Identification proof
• Passport sized photograph
• Proof of residence
• Proof of Income
• Bank statement
• Signature verification proof.
• Pro-forma Invoice or rate list.
Any of the following can be submitted under identity proof-
• PAN Card
• Voter Id card
• Driving License
Any of the following can be submitted under address proof identity-
• Electricity Bill
• Telephone bill
• LIC Policy
• Ration Card
• Driving License
• Voters ID card
Pre-Disbursement/ Post-Sanction documentation-
• Documents of the margin money receipt.
• Security Cheques required for SI and ECS
• Post-Dated cheques PDCs/ ECS Form
• Standing Instruction request.
• The details of the loan agreement which is duly signed along with the Regional Transport Office/RTO set.
Customers applying for Car Loan from the SBI state Bank of India need to apply with the following documents-
• Salaried employees and Non salaried/ Professionals/ Businessmen should submit their bank statement of their bank of the last six months with two passport sized photographs. All the needed documents with proofs should be submitted.
• The applicants who are engaged in the agriculture and other allied activities they have to submit their last 6 months bank statements along with the two passport size photos. Identity/ Address proof should submit. Their income proof should be of their crop cultivation as Khasra/Chitta Adangal which shows cropping pattern. Patta/Khatoni which shows land holding with photo. All the land should be free hold basis and the ownership proof of the land should be in the name of the burrower.
• Allied agricultural activity applicants like Diary, poultry/ plantation/ horticulture. Their documentary proof should be with the running activities.
In terms of sales in India these are the top 25 cars
1. Maruti Ignis
2. Toyota Fortuner
3. Honda city
4. Mahindra XUV 500
5. TATA Nexon
6. Maruti Brezza
7. Maruti Wagon R
8. Maruti Eco
9. Toyota Innova Crysta
10. Maruti Scross
11. Mahindra Scorpio
12. TATA Tiago
13. Hyundai Creta
14. Maruti Swift
15. Maruti Omni
16. TATA Hexa
17. Maruti Celerio
18. Mahindra Bolero
19. Hyundai I20
20. Maruti Celerio
21. Maruti Dzire
22. Mahindra TUV300
23. Hyundai Eon
24. TATA Tigor
25. Hyundai Grand I10
26. Maruti Baleno
Comparing Online for Car Loans-
In this competitive world there are many players who offer you many types of car loans in which they see their profits. You should not immediately accept their offers without knowing the market values. Once you have to weigh your options before taking a car loan. As you don’t like to waste your time much by visiting each bank and private institutes to know the car loans, they can check it through online car loan comparison. The GST will be calculated after the loan amount is sanctioned. So present GST rate for the EMI for the car loan is 18%. Here are some common factors which you can follow to check online comparison of car loans.
• Processing Fees-
While taking a car loan check the comparison in processing fees as it will be different for each bank. Hence it is not a big amount for differentiating but adding to the complete loan amount but will be counting.
Equated Monthly Instalment (EMIs), which you will pay every month to the banks after taking loan. In this form you will repay your loan amount to the banks. This also depends on the tenure of the loan you are paying. If loan is for small period of time, the EMI will be high. EMI must be paid on time. It is going effect your efficiency in the finance sector. Check this EMI rates for every bank for car loans.
• Interest Rates-
Different interest rates are offered from each bank on the car loans. Check thoroughly and compare online for car loans interest rates of each bank before applying for a car loan. These interest rates are different for each customer. Along with this loan to down payment value and processing amounts, get the right models, prepayment/ foreclosure charges and additional features are all should be compared online before applying for a car loan.
For knowing more details we request you to keep following our official web portal. We make sure we provide you all the necessary and required data you are searching for.Last Updated on : 23/Apr/2020
Know More How To Apply ??
Know More About
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
Updated on 25 Nov 2017
|Car Loans Details|
|Interest Rate (Monthly reducing balance)||9.25% - 11.5%|
|Processing Fees||Varies with bank|
|Loan Tenure||year to 8 years|
|Pre-closure Charges||Varies with bank|
|Guarantor Requirement||Varies with bank|
Car Loans EMI Calculator