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How To Finance A Car in India

by Expert
How to finance a car

Finance a Car: Banks have access to cheaper finance by offering loans at lower rates than those offered by NBFCs and shadow banks. To compensate for this disadvantage, auto finance offers dealers incentives to use their loans to finance, it said. Dealers need credit to buy cars from automakers, which they then sell to customers. Here you will get information about How To Finance A Car in India.

Bank Loan for a Car

Banks Bank Car Loans, available in an amount from INR 1 lakh to INR 500 lakh, give you the freedom to purchase the car of your choice without compromising style or comfort. With lucrative interest rates, easy documentation, fast payouts, and flexible maturities, banks offer you complete security and freedom to own the car of your choice. Individuals and organizations have extensive options for car loans available to banks to ensure customer satisfaction.

Easy Finance A Car

Buying a car used to be a milestone in a life where you had to fork out huge sums of money to get a car loan from banks or NBFCs (non-banking financial institutions), but now it’s as simple as equivaling monthly installments (EMIs) to help you afford a car without disrupting your budget. Lenders offer loans for new and used cars. Mortgage gives the lender the right to seize your assets such as your car if, for example, you do not pay the EMI, a mortgage letter is part of the car registration documents.

In other words, interest-rate baits are used by banks and financial agencies to sell their credit products. Banks provide 85% of the total value of a new car or any type of car finance. In other words, they provide a certain percentage of the amount that the purchaser has invested in his car purchase.

This fee facilitates repayment without worrying about the future increase of EMI. However, if you believe that the interest rate will fall in the future, you can opt for the variable rate.

car loan

Car Finance application process

Today most bank provide easy process for financing a car. read below detail information.

  1. Form fill up: All banking organization has their own prescribed finance form. To take loan, you have to fill the form carefully.
  2. Documents for a loan: To borrow a loan customer must submit KYC first. Always check documents list prescribed by loan organization.
  3. Loan approval: Now bank will check all documents according to checklist. Also bank consider if applicant have the earning source to repay the loan application.
  4. Loan disbursement: after all verification bank disburse loan amount to the customer.

Car Loan EMI Calculation

Car loan and EMI calculator can help you decide how much EMI you need to pay for your vehicle. The calculators are easily accessible and deliver fast results without manual calculations, making the process of credit planning easier.

Find out the price of the car you want to buy and find out how much down payment you need to make. Buyers should look around and talk to at least 3-4 banks to get the best loan rate. The best car loan should be made on the car, the amount of the down payment and the fixed interest rate.

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Types of Car Loan

  • New Car Loan: Bank provide finance to purchase a new car from showroom. You can avail maximum of 80% as loan amount of car’s on road price. You have to pay loan EMI as per bank terms.
  • Loan for used Car: Pre-owned car can be purchased on finance. bank or NBFC organizations offer loan as per current value of used car.

Owning a car has become much easier with the availability of fast online loans, which involve few simple steps and no personal data. Providing a car loan has become easier because of factors such as individuals knowing how to get the best deal. Car loan rates are beginning to fall, as automakers these days provide subsidized auto loans at lower rates and are wise to use all means to get the best deals that the auto loan market in India has to offer.

Car Loan Approval Aspects

The process of taking out a car loan has become so simple that all that is required is to follow the steps to get the best deal. Now people can buy their dream car with a car loan from reputable banks. bank offer used car loans for a wide range of cars from hatchback, SUV and premium sedans. With this car loan you can buy your dream car-convertible, sedan or luxury car and pay the loan off within a certain period of time. With a car loan from the Bank of Baroda, you could buy a hatchback or a sedan, a SUV, a sports car or a luxury car.

Applicant SIBIL score– It is mandatory to approve a car loan, Applicant’s CIBIL score rating must meet good.

Age of a Car– There are certain eligibility requirements that must be met before you decide to take out a car loan, and you should ensure that the relevant conditions are met. The age of the vehicle plays a major role in deciding the interest rate in the case of a used car loan as often it is the main factor in accepting or rejecting a loan application.

NRI Car Loan- An Indian national resident abroad who has a contract job or is self-employed in his home country is entitled to an NRI and can apply for an NRI car loan. In the case of Indian overseas banks, NRIs can borrow as long as they have an adequate guarantee from a resident Indian and are acceptable to the bank. Unlike normal loans, the guarantor does not have to pay the same monthly installment (EMIS) to the NRI guarantor as he can deposit it directly into his NRI account.

Two weeks ago, Praveen Kumar Balakrishnan, a merchant navy officer from Singapore, borrowed a car loan from Federal Bank Ltd during a visit to India in the NRI auto loan program.

Customer Concern Before Taking Car Loan

Research the prices, fees and other terms offered by several banks and lenders to understand the market and choose a lender before submitting your application for a car loan. Experts recommend that some banks waive the entire handling fee when buying a car over the festive period. You can also search online for other banks willing to offer lower rates.

With an easy-to-use online platform that offers customers end-to-end vehicle financing and related services, car financing has become simple and hassle-free. The online platform acts as an intermediary between the financier and customer by choosing the best credit option for Maruti Suzuki customers for their Maruti and Suzuki Arena cars, and completing all related formalities for the loan payout.

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