" Own your dream car with a car loan. "

Car Loan

What is a car loan?

You can avail a loan from a bank to purchase a brand new car. You have to pledge the car as collateral to avail this loan. You can also avail a loan for a pre-owned car.

What are the types of car loans?

Secured car loan: Your car is the collateral for the loan. If you do not repay your car loan, the bank can repossess and sell the car to get the money back.

Unsecured car loan: You avail an unsecured car loan to purchase a used car. You need not offer the car as security for the loan. You are sanctioned a smaller quantum of loan than a new car loan, and at a higher interest rate.

Why avail Car Loan?
Interest Rates

Interest Rates

Banks offer you a car loan at competitive interest rates. Women customers are offered a discount on interest by most banks.

Higher Loan Margin

Higher Loan Margin

Banks are willing to finance 90-95% of the cost of the car. Many banks lend for the full value of the car.

Easy Documentation

Easy Documentation

You can walk into the bank branch and bank officials would willingly answer your loan queries. Documentation is fast and convenient.

Special Discounts

Special Discounts

Banks offer attractive interest discounts for car loans availed in the festive seasons.

Eligibility criteria to avail a Car Loan

Salaried person

Age: You need to be at least 25 years of age and a maximum of 60 years at maturity of the loan.
Income: You need to have a gross annual Income of at least INR 3 Lakhs a year.
Employment stability: You need to have more than 2 years of work experience, and you should be in your current job for at least a year.

Self-employed individual

Age: You need to be at least 25 years of age and a maximum of 65 years at maturity of the loan.
Income: You need to have a gross annual Income of at least INR 2.5 Lakhs a year.
Business stability: Your business should have more than a 3 year track record of existence and profits.

Key factors to consider for Car Loan

What are the documents required to avail a car loan?

If you are salaried

You need an address proof such as a Ration card, Driving license, House Tax chalan, Housing Society bill, Voters card, Passport, Telephone bill, Electricity bill, Water bill, Landline bill and a Credit Card Statement.

You need an identity proof such as a Ration card, Passport, PAN Card, Voter Identity card, Driving license, Employee ID issued by Government of India/ PSU/ Limited companies, Local Panchayat Identity card, and a Notary certification with a Photograph.

You need the latest salary slip with the Form 16 document as an income proof.

If you are self employed

You need an address proof which shows the location of your firm/business.
You need an identity proof such as a Passport, PAN Card, Voters Identity card, Driving license, Latest Sales Tax assessment order or a Sales tax registration certificate.
You need the latest Income Tax Return as an income proof.

Related Articles

15 January 2017, Thursday

How To Get A Loan For A Second-Hand Car?

Driving is your passion. You love borrowing your friend’s car and taking your family on long drives. Driving your friend’s car is great, but what if you have your own car? Unfortunately, your salary does not allow you to afford a brand new car. But there’s a way out. It’s cal...

03 January 2015, Thursday

How to choose Best Car Loan

  Today’s youth want to own a car. As soon as they get a good job, they avail a car loan to buy their dream car. And yes…. Banks are happy to lend money to these young customers, to realize their dream. Before availing a car loan from a bank, you need to take a close look at...

30 January 2015, Thursday

Car loan: Bank vs Auto Finance Company

The festive season is here and buying that new car is on your mind. Banks and auto finance Companies are offering you discounts and are cutting down interest rates on car loans. You are tempted to avail a car loan. The problem you face is should you avail the car loan from bank vs auto...

Most Read Articles

20 January 2008, Thursday

Milestones of the sensex

The BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-weighted index composed of 30 stocks with the base value of 100 started on April 1979. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. These companies ...

07 January 2014, Thursday

Why is it very Essential to have Defensive Stocks in ones Portfolio?

There is a famous saying “Better be safe than sorry”. One cannot make too many mistakes and live to tell the tale when he is investing in the stock market. Building a safety net under one’s portfolio is very essential and its true value is realized only in a recession. Fortunately...

18 January 2012, Thursday

How to Make Claim on a Health Insurance Policy

Formalities for a health insurance claim You can make a claim under a Health insurance policy in two ways : On a Cashless basis and A Reimbursement Claim On a Cashless basis : For a claim on cashless basis, your treatment must be only at a network hospital of the Third Party Admini...

In The Media