Car Loan

Car Loans

Car Loan

High Loan Amount Eligibility | Fastest Approvals | Lowest EMIs

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    A car is a dream that many of us wish to achieve one day, right! In the wake of easy and attractive financing options, buying a car be it a new or a old one is well within your reach, unlike yesteryear when only a select segment of the society was able to enjoy such privileges. Currently, an individual with a salary of say Rs. 15,000-20,000 can also buy a car. With the repayment converted into Equated Monthly Installments (EMIs), the affordability for a car loan among the masses has gone up substantially. The EMIs, which depend on the interest rates, combine both interest and principal portions of the loan. The repayment tenure can vary when buying a new car to a old car. The maximum loan tenure for new cars is seven years, while for used cars it is 5 years. Any individual, be it salaried, self-employed businessmen or professionals with a regular source of income can avail a car loan from banks and non-banking finance companies (NBFCs) across India.

    Car Loan Interest Rates

    Needless to say, the most vital factor that you must look into is the interest rate on your car loan. Higher the interest rate more will your pocket pinch and vice-versa. Interest rates are determined based on the lending rates of the lender. Car loan interest rate can either be fixed or floating. With fixed rate, the rate of interest remains the same and changes when the loan is given on a floating rate. All floating rate car loans are subject to revision of MCLR by banks from time to time. The floating rate can thus be an add-up of the MCLR or the same. You can check below to find out the interest rates of different lenders. While comparing the lenders, make sure you keep an eye on the lowest car loan interest rate offers to reduce the cost of ownership and use the savings resulting from the same for other purposes.

    Table Showing Interest Rates, EMI and Others of Different Car Loan Lenders

    Car Loan India LendersLoan TenureInterest RatePer Lac EMIMax. Loan AmountProcessing FeeForeclosure Charges
    SBI7 years for new car
    5 years for old car
    9.20%-9.25% p.a. for new car
    12.65% p.a. for old car
    ₹ 1,619-1,622 for new car
    ₹ 2,257 for old car
    Upto 85% of the on-road price for new car
    Upto 2.5 times of net annual income for old car
    NIL for new car
    0.50% of the loan amount plus service tax for old car
    Minimum- Rs. 450+S.T.
    Maximum-Rs. 9,100+S.T.
    NIL
    HDFC7 years for new car
    5 years for old car
    11.50%-13.75% p.a. for new car
    14.50%-17.50% p.a. for old car
    ₹ 1,739-1,860 for new car ₹ 2,353-2,512 for old carUpto 90%-100% of on-road price for new car
    Upto 80% of the valuation of old car, limited to 3-6 times of your net annual income
    Rs. 2,825-5,150 for new car
    2% of the loan amount plus Rs. 200 or Rs. 5,200, whichever is lower for old car
    3%-6% of the principal outstanding on a given date.
    No foreclosure allowed before 6 months from the date of loan disbursement.
    ICICI Bank7 years for new car
    5 years for old car
    10.75%-12.75% pa. for new car
    15.50% p.a. for old car
    ₹ 1,699-1,806 for new car
    ₹ 2,405 for old car
    Upto 100% of ex-showroom price of new car
    Upto 80% of the valuation of old car
    Rs. 2.500-5,000 for new car
    2% of the loan amount or Rs. 6,000, whichever is lower, for old car
    5% of principal outstanding on a given date.
    No foreclosure allowed before 6 months from the date of loan disbursement.
    Axis Bank7 years for new car
    5 years for old car
    11%-12% p.a. for new car
    14.50%-16.25% p.a. for old car
    ₹1,712-1,765 for new car
    ₹ 2,353-2,445 for old car
    Upto 85% of on-road price of new car
    Upto 90% of valuation of old car
    Rs. 3,500-5,500 for both new & old cars5%-10% of the principal outstanding after 180 days from the date of disbursement.
    No foreclosure allowed before 6 months from the date of loan disbursement.
    Kotak Mahindra Bank7 years for new car
    5 years for old car
    11.50%-13.50% p.a. for new car
    15%-21% p.a. for old car
    ₹ 1,739-1,846 for new car
    ₹ 2,379-2,705 for old car
    Upto 90% of the ex-showroom price of new car
    Upto 90% of the valuation of old car
    As applicable by the bank5.75% of the principal outstanding plus service tax

    Car Loan Eligibility Criteria

    Car loan eligibility simply means the amount of loan that you can receive to buy your dream 4-wheeler. The disbursal depends on the income and repayment capacity of the borrowers. Different lenders set different eligibility criteria for the approval of car loan application. Below is a table to know the common eligibility criteria of car loan across the lenders in India.

    ParametersSalariedSelf-employed
    AgeAge should be between 21-60 yearsAge must be between 21-65 years
    IncomeA minimum annual salary of ₹1,80,000 is requiredA minimum annual income of ₹ 1,80,000 is needed
    Job/Business StatusWork experience of atleast 2 years with a minimum of 1 year with the current employerA minimum of 2 years in the same line of business is needed

    Factors Affecting Car Loan Eligibility

    • Monthly Income – Monthly salary or business income is a vital factor that the lender takes into the consideration before deciding the extent upto which the loan can be disbursed to your account. You always stand a good chance of getting more loan on a higher monthly income compared to those with a lower income.
    • Age – Car loan eligibility is based on age as well. Even though the age criteria differs across different banks and NBFCs, but usually the lenders give loan to people when they attain a minimum age of 18 years at the time of application and within 65 years at the proposed maturity of the loan tenure.
    • Car Value – The loan amount eligibility also hinges on the car’s on-road price (Ex-showroom price+RTO+Insurance+Accessories, if any). Banks disburse a car loan at about 85%-90% of the on-road price. If you are buying a used car, then the loan amount eligibility will be about 80% of the valuation of the vehicle. How and who calculates the amount, any idea? No! Well, the valuation amount is calculated by the lender-appointed representative based on the age and condition of the car. However, while buying a used car on a loan, make sure the vehicle is not over 4-5 years in use as most of the lenders will be reluctant to finance on such models.
    • Car Model Type – Your loan amount eligibility can be influenced by the model you opt for. As car is a depreciating asset, banks can give you a higher loan for a vehicle having a greater resale value compared to the one with a lesser resale value
    • Credit History – Credit history is vital to the approval of your car loan application and subsequent disbursal. You may have a good earning but your poor credit history can make you ineligible for a car loan. So, make sure you maintain a good CIBIL score preferably 750 and above to get the car loan approved from most lenders.
    • Employment Status for Salaried – If you are a salaried professional, you are supposed to have worked for atleast 2 years with a year of experience with the existing employer for a smooth car loan approval by the lender.
    • Business Longevity for Self– employed-Self-employed professionals or businessmen will have to be in the same line of business for a minimum of 2-3 years to get the lender nod for a car loan.
    • Relationship with Lender – You can take advantage of your good relationship with the lender to negotiate for a loan at competitive interest rates. If you grab the lowest car loan interest rate on negotiation, it will do your pocket a world of good.
    • Category of Your Employer – If you are working among the top fortune 100 companies of India, the eligibility would be on the higher side as the banks would consider your job stability to be good there. In the absence of the same, it is vital that you earn reasonably higher so as to get the desired amount of loan from the lender.

    Documentation

    ProofsSalariedSelf-employed
    Age & Identity ProofPassport Copy/PAN Card/ Voter ID card, Photo Driving License with birth date (laminated, recent, legible)/Photo ration card with DOB/Employer certificate/ID/School/College Leaving CertificatePassport Copy/PAN Card/ Voter ID card, Photo Driving License with birth date (laminated, recent, legible)/Photo ration card with DOB/Employer certificate/ID/School/College Leaving Certificate
    Income ProofForm 16 for last 2 years, Latest Salary Slip, 6-month bank statementIT returns for the last 2 years along with audited balance sheet, P&L account statement for 2 years, Shop & establishment act certificate / sales tax certificate / SSI registered certificate / copy of partnership
    Residence ProofLatest Telephone Bill/ Electricity Bill/Property Tax Receipt/Passport/ Voter IDLatest Telephone Bill/ Electricity Bill/Property Tax Receipt/Passport/ Voter ID
    Signature Verification ProofPassport copy/PAN CardPassport copy/PAN Card
    Passport Size PhotographsApplicableApplicable

    Features & Benefits

    • Funding available upto 80%-100% of ex-showroom or 80%-90% of on-road price of the car
    • Loan amount available upto 80% of the valuation of old car
    • Easy Documentation
    • Fast Processing
    • Flexible Repayment Options
    • Hassle-free & Transparent Process
    • Quick Approval

    How to Apply for Car Loan?

    You can apply for a car loan through various mediums-going online to visiting the nearest branch of the lender. Of the options available at your disposal, the best would be to apply online as it is easy to use and execute. All you require is to visit the official website of a bank or NBFC. You can find the link of ‘Apply for Car Loan’, ‘Apply Online’ or ‘Apply Now’ on the website. Click the link, submit the required details along with a scanned copy of the relevant documents for the processing of your car loan application. Other ways would be to submit your loan application form and the required documents at the bank branch. The moment you do so, the lender will start investigating the details and assessing your eligibility for a car loan. If everything goes fine, you would be greeted with a hassle-free loan disbursal to buy your dream car.

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