You probably make good research for buying a car for you and your family. Today a car is no longer considered as luxurious commodity. But it is necessity to have a car because, lifestyle is changing so rapidly. Today most people travel from one location to another in a city. If you have your personal car then it would be good for your development also. Car loan can help you in this regard. It is no longer tuff to avail a car loan today. But right loan offer will make your car ownership journey smoother. Here we will discuss about how to get best car loan easily?
You may not have lump-sum payment in your hand but, there are numerous lenders who can help you to get your dream of buying a car through an easy car loan.
Car loan application is now hassle-free, easy, and complete online. You need to find a good site which is most reliable and pocked friendly. On the site simple fill your details and that’s all for Appling a car loan instantly. Here you will get all necessary information about car loan interest rate, EMI information, required documents for applying your car loan.
What are eligibilities and criteria to get best car loan?
Today almost all bank and NBFC organizations offer car loan. All financial organization process almost same criteria before car loan approval. Please check below certain eligibility you should met to get a car loan for buy a car are:
- Loan Applicant age– 21-60 years(for employee) and 18-65(for self-employed)
- Applicant Net Monthly Income- 20000
- Applicant Job- Minimum 1 year with current employer.
- Income Source- Salaried or self-employed, working for government or in a private company
- Credit score- 700
- Loan Tenure- Up to 7 years
- Loan to value ration- 100%
What are the Benefits of Car Loan?
In how to get best car loan check key points of taking a car loan.
- You can get finance for new or used cars.
- Most bank offer up to 85% to 90% finance of on-road price of a car. You can check there are some bank offering up to 100% financing on car’s on-road price.
- You can get up to 7 years to repay the car loan amount to the Leander. You can chose loan repayment time from 1 year to 7 years.
- You can take benefit of loan amount which is three times of your annual income.
- Always try to take car loan from your dealer point and Leander must have direct tie-up with car manufacturer. You will get additional discount.
- You can also get same day financing.
- Take a look of car loan repayment structure. Always go for reducing loan terms.
- Mind it, purchased car through financing will be held as collateral until the loan is repaid.
Documents required for Car Loan
All financial organization process almost same rules and regulation for providing a car loan. You need to submit Documents as per Leander requirement. Below are the most widely used documents to obtain a car loan.
Identity proof for KYC purpose (any of the following)
- Aadhaar Card
- Driving license
- Voters ID card
- PAN card
Address proof (any of the following)
- Aadhaar Card
- Driving license
- Ration card
- Utility bills
Applicant income Proof
- Form 16
- Salary slips if you are salaried
- Latest Income Tax Returns
- Last 6 months Bank statements
Compare Car Loan Interest Rates in India 2021
Before applying for a car loan or taking a car on finance take a look on latest car loan interest rate chart. You can get benefit with this car loan chart. You can decide best car loan that suit your budget.
|Bank Name||Car Loan Interest Rates||Processing Fee|
|State Bank of India Car Loan||7.70% p.a. onwards||Rs.1,000 plus GST onwards|
|Indian Overseas Bank Car Loan||7.25% p.a. onwards||Contact the bank|
|Bank of Baroda Car Loan||7.25% p.a. onwards||0.50% of loan amount, maximum Rs.10,000 plus GST|
|South Indian Bank Car Loan||7.55% p.a. onwards||Contact the bank|
|Canara Bank Car Loan||7.30% p.a. onwards||0.25% of the loan amount, minimum Rs.1,000 and maximum of Rs.5,000|
|HDFC Bank Car Loan||7.50% p.a. onwards||Contact the bank|
|Axis Bank Car Loan||8.65% p.a. onwards||Minimum of Rs.3,500 and maximum of Rs.5,500|
|Federal Bank Car Loan||8.50% p.a. onwards||Contact the bank|
|Karur Vysya Bank Car Loan||7.55% p.a. onwards||Contact the bank|
|ICICI Bank Car Loan||7.90% p.a. onwards||0.5% of the loan amount|
|Jammu Kashmir Bank Car Loan||7.30% p.a. onwards||Contact the bank|
|Yes Bank Car Loan||7.95% p.a. onwards||Contact the bank|
|Central Bank of India Car Loan||Repo Rate + 4.80% onwards||Contact the bank|
|IDBI Bank Car Loan||7.90% p.a. onwards||Contact the bank|
|Karnataka Bank Car Loan||8.20% p.a. onwards||Contact the bank|
|Lakshmi Vilas Bank Car Loan||RLLR + 0.75% onwards||Contact the bank|
|Union Bank of India Car Loan||MCLR + 0.35% onwards||Contact the bank|
|Federal Bank of India Car Loan||8.25% p.a. onwards||Contact the bank|
How to Calculate a Car Loan EMI?
You have to pay the EMI (Equated Monthly Installments) against your car loan to the Leander. If you borrow higher loan then your EMI will also be higher. Similarly, for short period loan will meet higher EMI. Key factors are:
- The amount of the loan
- The interest rate that is applicable to the loan
- The tenure of the loan
- The processing fees of loan
Car Loan calculation example-
Suppose you have taken Rs. 200000 loan at an interest rate of 12% to purchase a car, now you decided to repay the amount on next 12 month. Below will be your month wise EMI chart.
You can calculate the Car Loan EMI Amount with the help of the
Mathematical formula: EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1]
Where P(Principal Amount), R (Rate of Interest) , and N (number of years) are the variables. This also means that the EMI value will change, each time you change any of the three variables.
Monthly calculated Car Loan for Repayment
|Payment No.||Begining Balance||EMI||Principal||Interest||Ending Balance|
10 tips on how to get the best car loan
So, you are decided to purchase a car on loan. Consider following aspects to avail your loan quickly form bank or NBFC organization.
Check Your Credit Report- First check your credit score. Higher credit score means you are ready to get your fund quickly. A score of 750 or more is good. But if you are defaulter then your application may be rejected.
Maintain credit score- You are willing to take car loan to purchase a car. It is very Important to Pay Your Bills on Time you must have a minimum monthly pre-tax income and manageable debt-to-income ratio (DTI). Previous loan repayment history effects your next loan application.
Check Car Loan Options- Before taking any loan, a market research is mandatory. May be you find a better option to apply for a car loan. Check current interest rate oan compare first.
Minimize loan amount- Always try to pay large amount as down payment for purchase a car. It will impact on your EMI. Smaller loan amount will provide smaller EMI.
Always select a loan plan that fits you– It is about your budget. Always apply for a loan that suit your profile. If you already paying a loan then it is more important fact. Always chose a loan and EMI that you can easily repay to Leander.
Always read Terms of Loan– lower EMI means it is good for you is not right. Always go for a car loan that ensure low EMI with minimum loan tenure. Must read all terms and conditions carefuly/
Chose Complete Coverage car loan scheme– always go for complete coverage insurance plan. It will help recovery if any accident occurred.
Find right dealer and loan scheme– Always go for a bank to avail the loan. Good car dealer always guide you for better car loan scheme. Make some visit to dealer’s point to discuss with. Also compare bank loan scheme.
Which bank to choose for a car loan– Always approach a bank where you transact regularly. It will be very easy to get loan firster from a bank where you have good relationship. Many bank offer exciting scheme for existing customer. You may get same day car loan approval from your bank.
Check car loan eligibility– If you are willing to purchase a pre-owned car then make sure bank finance pre-owned car. If not then contact dealer point and they will guide you for best car loan provider for pre-owned car.
If you need more car finance information: How to finance a car in India
How to Apply Car Loan?
There are several ways to apply for a car loan
- Directly visit bank branch and contact loan manager.
- Apply online from bank portal.
- Get financing via car dealer.
Final word: bank will collect your documents and initiate the application processing, which includes SIBIL score checking, the value of the car you are willing to purchase, eligibility conditions, and more, and then take a decision on your loan application based on the evaluation results. If everything found positive that means you will get your car finance soon. If there is any problem then your car loan application will be rejected.