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.
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.
Banks offer you a car loan at competitive interest rates. Women customers are offered a discount on interest by most banks.
Banks are willing to finance 90-95% of the cost of the car. Many banks lend for the full value of the car.
You can walk into the bank branch and bank officials would willingly answer your loan queries. Documentation is fast and convenient.
Banks offer attractive interest discounts for car loans availed in the festive seasons.
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.
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.
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.
15 February 2017, Wednesday
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...
10 December 2015, Thursday
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...
10 August 2015, Monday
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...
18 July 2012, Wednesday
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 Administrator (TP...
14 March 2014, Friday
As the name suggests ELSS invests the whole corpus in equities. Proportions as high as 80-90% of equities are found in an Equity Linked Savings Schemes. It is a special kind of mutual fund that qualifies for tax benefits. Basically Equity Linked Savings Scheme is a mutual fund with a lock in peri...
07 January 2014, Tuesday
One of the most common reason for family feuds in India as in the rest of the World is faulty estate planning. Estate planning is a neglected topic in India mainly because of the emotions attached to it. A common reason people neglect to make a will or indulge in estate planning in their younger y...
No. 50, Vinay Arcade, K H Road,
Shantinagar, Bengaluru,
India, 560027.
