If you need information regarding car loan & feel clueless due to loads of material available online & don’t know where to start from then this is the best place for you to be to get all the needed information regarding Car Loan.
What Experts says
"Personal Car Finance is a complete subsector of personal finance, with numerous different products available. These include a straightforward car loan, hire purchase, personal contract hire (car leasing) and Personal Contract Purchase. Therefore, car finance includes but is not limited to vehicle leasing. These different types of car finance are possible because of the high residual value of cars and the second hand car market, which enables other forms of financing beyond pure unsecured loans."
Car loan can be of two types i.e. a loan for used car & a loan for new car. Understand the fact that the technicality for used car loan & new car loans are really very different. Even the rate of interest for both types of auto loans will be different. Car loan in India is very different compare to most other countries in the world. It is so because in India as a car seeker we don’t get the option of leasing the car where it is open option in several other countries.
There are some eligibility points that are common for all car loan providers like ICICI car loan, SBI car loan or even Axis bank car loan. For example proof of identification & proof of residence will be the common document for any car loan. While the other documents like income & age may be different depending upon the bank policy.
The car loan market in India is really very competitive. Every bank & financial institution is coming up with some or other lucrative offers to attract the car seeker. There are plenty of options to choose from. Deciding which car loan is best for you is big deal as it includes lots of comparison of offers made for you by different car loan providers.
There are many major players like HDFC bank, SBI bank, Kotak Mahindra financial institute, ICICI bank, Axis bank & many others to count on. Every bank has their own feature. The best car loan for you would be the one that offers you exactly what you want.
The loan amount that you are eligible for will be depending upon you age & income. Age plays an important role as it decides the repayment tenure of the loan. If you are too old you may not be eligible for the loan as you are not in a position to pay the loan amount back to the lender. Again the amount of the loan will be different by different loan providers with different rate of interest & different amount of EMI.
Most banks provide loan up to 80-90 percent of the car price but there are some exceptional banks that provides 100 percent car loan finance.
Most banks does not include additional charges in the loan amount while providing auto finance for pre-owned car.
The interest on the car loan in India has as wide range as 10 percent to 15 percent depending upon many aspects like your credit score, the tenure of the loan, prior relation with the bank & financial institute from where you are applying.
The minimum duration of the car loan is 12 months. Five years is the maximum loan tenure in most banks. There are some lenders & banks that provides 7 years of loan tenure especially when the amount of the car loan exceeds certain level. It is very important to understand the fact that the longer the tenure of the loan the higher amount of interest you are going to pay.
There will be some additional charges you must have to consider before applying for a car loan. These additional charges includes processing fees, documentation charges, part payment charges, loan cancelation charges & even prepayment charges.
The essence is to understand that some banks will openly communicate these charges to you at the time of loan application while others will let you know at the time of the payment of these charges.
One of the easiest way to apply for a car loan through online. If you are planning to buy a car loan from one of your current bank then just log onto their website & follow the step by step process for applying for the loan online.
Now a days you have to option for applying in many banks altogether by going on financial services website. These websites allows you to apply for the loan in many different banks. These websites will even advice you to apply for specific banks depending upon your documents & income. Banknomics is one of the leading financial services websites that give you such facility online.
All you need to do is provide us with your contact number & they will provide all the facilities that you need starting from document collection till taking the final loan approval from the bank.
Banknomics also has car loan EMI calculator that will instantly calculate the EMI when you provide them with the details like loan amount, tenure for loan & pre-payment amount. This calculator will not just provide you the monthly EMI that you would be paying but also will let you know about the amount of interest you would be paying.