Car Loan Up to 100% Funding on New Car Loan Low Interest Rate One can opt for a new or a used car loan depending on the car loan requirement and the requirement of the car. However, most of the people prefer car loans over new cars and not for old cars. Car loan option in India is one such option that allows them to buy a car. Which is better than car available in their budget since car Loan approval is quick.
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Car loans in India generally offer a fixed rate of interest option while making the repayment through EMI. It assures you of a fixed repayable amount on a monthly basis for the car loan,
Which facilitates better budget planning without disturbing your normal expenses. The bank offering the car loan also offers flexible repayment tenure options of 1-7 years to repay the car loan.
Amount in regular EMI. It is often easier to avail a car loan in India than any other loan. And it consists of easy documentation with clear instructions and guidance during the complete car loan approval and approval process.
Car loan borrowers can avail loans up to Rs. 1.5 Crore, mostly inclusive of 100% of the on-road price of the vehicle. Most of the banks have reasonable EMI within flexible tenure options to offer on car loans.
Car Loan Eligibility
Owning a car used to be a big deal earlier. Until about a decade ago, this was a lengthy process with a lot of documentation process. Today, in just a few days, one can book a car and drive it back home too!
Getting a car loan has become easier, as many financial institutions offer convenient terms and conditions. Most of the major banks sanction car loans in a day or two, which makes it very easy to buy your favorite four wheeler in no time. The main criterion to keep in mind while availing a car loan is to ensure your car loan eligibility.
How does a car loan work?
Car finance or car loan enables the borrower to get a car with any financial institution arranging funds for the purchase. The borrower will repay the amount called Equated Monthly Installments (EMIs) at regular intervals (usually on a monthly basis) over a pre-determined period.
EMI will include repayment of principal and interest. Car loans usually do not require collateral or any additional guarantors. The car purchased against the fund will be mortgaged to the financial institution that gives the loan. Any non-payment or default in repayment of the loan could potentially lead to the confiscation of the car.
Factors Impacting the Eligibility of a Car Loan
While applying for a car loan is easy, it is also important to check your car loan eligibility. This helps in avoiding any hassle in the whole process and reduces the chances of your loan rejection. There are many factors that affect the eligibility of a car loan.
The bank considers your personal credit score a lot before issuing a car loan. It reflects your goodwill and a true understanding of your financial situation. If you have a good credit score then it will be easy for you to get a car loan. If your score is low, chances are high that it will be rejected.
The minimum age to apply for a car loan with most of the banks should be 18 to 21 years. Also, it is advisable to close the loan payment before the age of 65. Banks give preference to applicants who have a longer tenure, i.e., individuals who have more numbers, as their financial position will be strong.
The total loan amount that will be made available to you will depend on your level of income. If the income level is less than the prescribed limit, you can include your spouse or any other earning member of your family as a co-applicant. This will strongly support your application and qualify your application against the criteria of the loan.
The loan-to-income ratio is considered by the bank when you apply for a loan. If you are currently paying off any other loan, you should close it completely, as it may hinder you from getting your car loan. Existing loans should be cleaned up as much as possible to increase the chances of getting the loan.