Important information about the Car Loan
Car loan is a financial scheme provided by a bank or other financial institutions, where a borrower of the debtor is given funds to enable purchase a vehicle/car for his use. The car purchased could be for a private or commercial use and had to be indicated by the loan applicant. Everyone wants to own a dream car and that is something they dream for. But in today’s time managing everything is not easy and saving money for a car can be a tough job for most. Banks can provide you with money and will help you to get loans in quick time. Once you have the right papers in place. There are some requirements laid down by the bank and once you have them in line things will be much easier.
The hundies later led to the emergence of banks. The growth of banking can be traced to the 18th century when the first bank was founded. Since then banking in India has grown tremendously. Indian banks can be divided into three categories which include;
(a). public sector
(b). Private sector, and,
(c). Foreign banks
Today, just like anywhere else in the world, banks in India are doing much more than deposits and withdrawals of money. New products and services such as wealth management, asset finance, stock broking, insurance amongst others have been adopted by banks. These products and services are tailor-made to suit the needs of different institutions and clients. Hence there is something to go with the needs of one and all. There are so many people who need money in time of emergency and loan is one of the best ways to complete those needs. Every dreams of owning a car and you can do that in quick time, with help a car loan.
Most of Indian banks have also gone global, by either running on their own or working with subsidiaries. A good example is the Bank of Baroda which commands a huge presence in foreign countries.
- An established proof of income should be provided.
- Residential proof of the applicant is also required. This could be provided in the form of utility bills.
- Minimum age of 21 years is required, and 70 years as a maximum age limit as at the time of maturity of full repayment of the loan.
Calculation of loan eligibility amount:
- A range ofRs 1.80 Lac –Rs 2.40 Lac as annual salary is a basic salary requirement, depending on the model of the car involved.
As a matter of general estimation, a minimum down payment of 15% of the vehicle on-the-road is required.
- Most people eventually settle for a scheme of 5-7 years of payment tenure.
Interest rate bank wise:
On an average basis, the rate of interest in banks for car loans in India ranges from 9.80% – 11.25% for new cars.For used cars, the interest rate is between and 15% – 17.5%. It also depends on the banks though some of the banks may give you some discount on various occasion like diwali on the processing fees and hence you need to look for them and then go for your loan.
Top five banks providing credit loan:
- State Bank of India.
- Union Bank.
- Axis Bank.
- KarurVysya Bank.
- Dena Bank.
So do not wait any longer, just go ahead and get things in place and once you have all that is needed just walk out with you dream car and there is nothing better, so what are you waiting for.