What is the minimum amount of auto Loan provided by banks /Nbfcs?
Banks /Nbfcs offer Auto Loans starting from Rs. 1 lakh onwards. However below mentioned factors are considered while deciding a loan amount:
• What is the applicant's requirement and for how much applicant is eligible?
• What is the repayment capacity of applicant?
For how long can one use the car loan?
Banks / Nbfcs offer a flexible tenure ranging from 12 to 84 months.
What type or make of vehicles do Bank /Nbfc finance?
Car loan available for most multi-utility vehicles, passenger cars, and sports-utility vehicles that are available in India and are bought for personal use.
What process do the Bank/ Nbfc follow after I apply for an Auto Loan?
Once completed application form along with necessary documents like income proof, identity proof, invoice, and so on, are submitted, the following steps take place:
• Processing/approval of application
• Sanctioning of the loan
• Disbursement of loan
What will be required as security or collateral to avail an Auto Loan?
The vehicle for which loan is required is itself used as collateral and will be hypothecated for the loan period. And except that, no other security or collateral is required.
Am I eligilible to sell my vehicle before repayment of entire loan?
Unless bank /nbfc gives a 'No Objection Certificate' (NOC), the applicant cannot sell the vehicle and NOC can only be obtained when applicant have paid off loan.
Will the Bank/ Nbfc charge me if I cancel the Auto Loan after it has been approved or disbursed?
Yes, a fixed charge is applicable if you cancel your Auto Loan. Apart from this, additional charges such as stamp duty charges, interest accumulation, etc. may also be applicable.
Are there any charges towards availing an Auto Loan?
Yes, there are non-refundable processing fee + Service Tax as applicable for every Auto Loan application.
On what type of interest rates, Auto Loans can be availed?
Bank / Nbfc offers provides auto loan on both fixed and floating interest rates basis.
Which Documents are required to be submitted along with the loan application?
1. Completed Application Form having passport size photograph attached thereto.
2. Identity proof in form of PAN Card / Voter’s ID/Passport/Driving License.
3. Address Proof in form of Recent Telephone Bill / Electricity Bill / Property Tax Receipt / Passport / Voter’s ID.
4. Proof of business address in respect of businessmen / industrialists.
5. Employment proof.
6. Salary Certificate.
7. Proof of other income like rent, interest on investment, if any.
8. Audited financial statements for the last 3 years, if the applicant is Professional, Businessman or Self employed.
9. Last 3 years Income Tax / Wealth Tax (if applicable) Returns.
10. Invoice of authorized dealer for Vehicle to be purchased.