A car loan is a great way to drive your dream car without making the complete payment upfront. You don’t need to wait for some more months or years to buy your dream car as you can take a car loan to meet your fund requirement. Car Loans are provided by Banks and also by Non-Banking Financial Companies. Car loan providers compete among themselves for customer acquisition which is the opportunity for the car buyers, they can always negotiate with the providers for the lowest interest rate and processing fees.
The loan provider lends the customer the money to buy a new or used vehicle. It is the simplest of loans. As a car buyer, you need to be monetarily sound and prepared for some extra expenses. The vehicle is the security for the loan so the provider will demand it be fully insured.
Pre-owned car market is growing in India where you can buy a certified pre-owned car from a legitimate dealer. These cars are cheaper and require less loan amount. However, getting a loan to buy a pre-owned car is a little bit difficult as compared to a new car.
This type of car loan is taken to buy a new car. It is very easy to get a loan to buy a new car with minimum documentation and time.
Advantages of Car Loan: –
Many financial institutions are providing a car loan to help individuals looking to drive their dream car and fulfil the dream of owning a car.
Car loan amount varies as per the cost of the car. Financial institutions are offering pre-approved car loans up to 100% of the on-road price of the car, subject to a maximum of INR 20 lakh in just four hours.
Car loan interest rates range from 8.60% to 11.50%, up to 15% for pre-owned cards and are negotiable based on the credit score, credit history of the customer
Car loan tenure ranges from 3 to 7 years.
Eligibility Criteria
| Age | 21 years to 65 years |
| Nationality | Indian |
| Profession | Salaried or Self Employed |
| Income | Minimum 20,000/- INR |
| Credit Score | 650+ |
Documentation for a car loan is simple however the proper understanding of what documents are needed will help you to get the loan with ease.
Below is the guide for the documentation for the car loan:-
