Your desire of experiencing the ultimate dream on THOSE FOUR WHEELS has now become economical and easy. Car loans are the best way to acquire a new car of your ambition. You can even buy a second hand car by availing loans from banks or non-banking finance companies (NBFCs). However, there are some banks that charge a higher rate of interest on loans for second hand cars. For getting the best deals on car loans, you can have a look at Afinoz.com. We've made it possible for you to apply for a quick approval of car loan where you only have to fill in our easy-to-follow two minute application form online.
- Avail better car : car loan helps you purchase a better car than the one available in your budget. While this might not be a rule, it holds true for a majority of car purchasers in India.
- Save Income Tax: To buy a car you need lakhs in your pockets. However, if you buy a car with a loan, not only you can save some income tax, but also get loans at very attractive rates e.g. ‘ 9.25% to men (SBI) ’ and ‘ 9.20% to women (SBI) ‘.
- Secure Environment: This approach is more reliable than borrowing money from pawnbrokers.
- Negotiate the Loan Amount: Usually, banks sanction 80% to 90 % of the cars on-road price. You can even make a request to get the total principal amount of the cars ex-showroom price as the loan amount.
- Flexible pre-payment choices: Pay-off your loan early and give less interest.
- No collateral: Under car loan financing, a car loan is secured against the car itself, so there is no need for collateral or any other assets to get a car loan.
- Improve Credit Score: If you make your payments timely then you could be in the process of rebuilding your credit score for a better life.
- Car loan eligibility or car loan interest rates can be easily assessed with afinoz. If there is any query about car loan application, you should log on to afinoz.com or call us at +91-8795021552 or mail us at firstname.lastname@example.org and get all the solutions and car loan details.
For an individual to be eligible for a car loan in India, the individual must be either a salaried person or self-employed professional. There are certain eligibility conditions which one must fulfill:
- For Salaried Individuals:
- Age: Your age should be ranging from 21 to 60 years
- Credit Score: Your credit score should be good
- Income: Your monthly minimum salary should be 15,000. Nevertheless, this criterion varies from bank to bank and from one financial institution to another.
- Employment History: Minimum of 1-year employment at the current employer
- For Self-Employed Individuals:
- Age: Your age should be ranging from 21 to 65 years
- Income: Annual business earning should be a minimum of 2, 50,000.
- Employment History: Minimum of 2 years of employment in the current business
Eligibility & EMI calculator: - Now, you can easily & conveniently assess eligibility or calculate your car loan eligibility and car loan EMI using utility tools like car loan eligibility calculator & car loan EMI calculator at afinoz.com . The calculator will help you to determine your EMI outflow every month including the interest rate you pay. Using the calculator at afinoz .com is free, easy and simple.
DOCUMENTS REQUIRED FOR CAR LOAN
You would need to submit the following documents along with the completed application form for the car loan process:
- 2 recent passport size photographs
- Income certificate: Last 6 months salary slip or ITR, Form 16 for salaried individuals. ITRs or balance sheets/P&L accounts for Self-employed individuals.
- KYC documents: PAN, Voter ID, Electricity bill, Passport, Ration card, Driving license, Adhaar card, etc.
- Pro-forma invoice of the vehicle.
- Proof of your net worth like fixed deposits or any other movable or immovable in your name.
- Signature Verification Proof
While like most of debt instruments, car loan interest rates are linked to the base rate dictated by RBI directives, the rate does differ slightly from bank to bank. Some additional aspects that may affect the interest rate on car loans include the loan amount, loan tenure, credit history and your reputation with the bank. Apply for car loan with Afinoz and you can avail best car loan interest rates.
|S.N||BANK NAME||RATE OF INTEREST||PROCESSING CHARGE|
|1.||Axis Bank||11.00% – 12.00%||Rs. 3500 to Rs.5500|
|3.||Bank of Baroda||8.60% TO 10.35%||0.50% of the loan amount|
|4.||Canara Bank||8.70% to 8.95%||0.25% of the loan amount|
|5.||Corporation Bank||9.40% to 9.90%||1% of the loan amount|
|6.||HDFC Bank Ltd||9.25% to 11.25%||0.4% of the loan amount|
|9.||Oriental Bank of Commerce||8.35% to 9.10%||0.50% of the loan amount|
|10.||Punjab National Bank||8.65% to 9.15%||Rs. 100 + GST|
|11.||State Bank of India||9.20% TO 9.25%||0.5% of the loan amount|
|12.||UCO Bank||9%||1% of the loan amount|
|13.||Bank of India||9.25%||Rs. 500 + GST|
|14.||United Bank||9% TO 9.05%||0.5% of the loan amount|
|16.||Dena Bank||9.0% TO 9.1%||Rs. 500+GST|
|17.||Indian Overseas Bank||9.05%||N.A|
Disclaimer:*Rates are subject to periodic change.Car loan interest rates & other fees and charges are subject to regular review and can vary with each customer. Thesecan differ depending on your credit worthiness & other factors. The final interest rate will be based on different criteria including the bank’s internal policies & applicable rates at the time of approval.Please note that the interest rates provided here are based on the market research. To facilitate the comparison insight, certain set of data has been reorganized/restructured/tabulated. It is advisable to recheck the same with the individual companies / organizations. This website does not take any responsibility for any sudden or uninformed changes in interest rates. Banks or Financial Institutions can contact us at email@example.com for inclusions or updates.
For any further query, please visit us at afinoz.com, contact us at +918795021552 or email us at firstname.lastname@example.org .
Q. What is the maximum amount of a loan that I can avail?
If your income does not meet the credit criteria, then you may require a security/guarantor to stand surety for your loan.
Q. Can I negotiate loan interest rates?
Of course, you can and you definitely should. If you have a good credit score and have overcome all the eligibilities set out by the bank, then you may be entitled to lower interest rates.
Q. What is the tenure of a car loan?
The tenure of the loan decides the amount of EMI (Equated monthly installment) that you need to pay back for your loan. Car loan is generally available for tenure of up to 7 years
Q. Can I save money by paying off a car loan early?
Yes, you can save money as you are already halfway through with your loan and most of your payment is currently going towards the principal loan.
Q. Are there penalties for paying off a car loan early?
You will be charged a small fee as a pre-payment penalty which will depend on the principal leftover amount.
Q. What happens if I don't pay EMI's on time?
Two or three missed EMI payments are allowed by most of the banks. But more than that can affect your credit score declaring you as a defaulter and the respective bank might seize your vehicle. This will definitely reduce your eligibility of getting any loans in the near future.
Q. What is the maximum amount of a loan that I can avail?
Maximum amount mainly depends on two factors:
- Price of the car
- Your monthly in-hand salary.
Salaried individuals can get a car loan up to three-times their yearly salary, while self-employed professionals can borrow up to six-times their yearly income.
Q. How can I estimate my monthly loan payments?
You can find your estimated monthly loan payments by using this car loan calculator available at afinoz.com.
Q. Should I go with the fixed rate of interest or floating rate of interest?
Fixed interest rate means the EMI's are fixed for the car loan over the entire period of repayment of the loan. While in floating the rate of interest of the acquired loan varies with market status. Research thoroughly and do your inquiries before taking the loan as each one of them has their own benefits and drawbacks.
Q. Can I utilize car loan to purchase car accessories?
Most of the banks do not extend their loans to buy car accessories. But some banks, like SBI, can cover car accessories such as leather seat covers or rust painting in a loan.
Q. How long does it take for getting the car loan sanctioned?
The loan processing begins immediately once you submit your documents on our website. Then it may take around 4 to 8 days for the loan getting sanctioned.
Q. Can I sell my car even before the loan amount is fully paid off?
Unless and until you get a NOC (No Objection Certificate) from your bank, you cannot sell your car. You can have your NOC from the bank after you have paid off your entire loan.
Q. How do I repay the loan?
If you have an account with the bank, then issue for direct monthly debit from your account. In case you don't have an account in the bank, you can draw Cheques and DD's and make payments.
Q. Can an early car loan payment affects my credit score?
Doing so might influence positive points on your credit report. But in actuality, it has very little impact.
Q. Can I still get a loan if I don't have an account with the bank?
You are not required to have an account with the bank to apply for a loan.
Q. What are the lending rates for Car Loan?
The lending rates vary on the basis of car model and loan tenure selected.
Q. What happens when I pay off the last EMI?
After the loan is paid off entirely; the bank will then issue you a Form 35 along with a NOC certificate. Submit these to RTO to get the lender's name canceled from the RC book.
For any further query, please contact us at +92-8795021552, or email us at email@example.com.