IDFC bank initially started its operations in 2015 and in a very short span of time, it has established it among the top leading banks.
Canara bank holds a record of no loss since it was established in 1906, the bank is trusted for a host of financial assistances.
Now take home your dream car with Axis bank’s car loan schemes at affordable rate of interest, flexible tenures & easy documentations.
In this fast moving modern day life, car is the prime necessity of every individual. No matter how hard we try, we all desire to own our dream car parked in the house’s lobby. Earlier, being able to afford a car used to be out of budget thing for most people, but, today the scenario is completely different. There are host of banks and financial institutions offering car loan at affordable rate of interest, so that, you don’t need to compromise with your dreams.
As a matter of fact, several commodities have witnessed the hike in prices since the demonetisation, as a result of which the cost of living has risen noticeably. However, this shouldn’t be a barrier to pursue your dreams. This has enhanced the possibilities of buying used cars affordable even by the lower middle class society. With the availability of buying used cars, people can fulfil their dream to own a car packed with all the same features as of the new one, and that too within a limited budget. Meanwhile, they need to be very cautious before making a decision to buy a new one or going for a used car as there are several factors that can leave an impact over your financial budget.
As the name suggests, car loan is a sum of money borrowed for the purchase of a four-wheeler. Also to be noted that, the sum borrowed can be used only for the purchase of a car and not for any other reason. While signing the loan application, the applicant agrees to pay the borrowed sum to the lender along with the calculated interest. Such loans are also termed as secured loan, where the intended vehicle serves as the collateral.
Having a car ride is definitely fun and exciting. Almost everyone loves going on a long drive with no worries of life. But the sad part is that most people have to give up on their desires as they don’t have enough sources to bring home their favourite car. However, the days are gone long back when buying a four-wheeler was counted as something luxurious. Today, the financial market is flooded with plenty of car loan schemes at competitive interest rates with flexible terms, which makes it easy and affordable to bring home your favourite vehicle. Hence, despite being one of the most expensive commodities, it is now quite affordable to buy a car at easy monthly instalments.
Zero Down-Payment Plan – The lenders attract customers with deals like zero down-payment, though, basically it’s like a “pay less now, but, more later” deal. You pay zero penny as down-payment, which means you are going to pay more on EMIs, which ultimately means you end up paying more as an interest.
Selecting Longer Lenure – Well, most people believe that longer tenure means lower EMIs, but, they apparently don’t understand that longer tenure also means paying more interest. Hence, make sure that you choose the shortest tenure possible for your new or used car loan, in order to minimize the interest outflow.
Heart Over Mind – Going with the strong gut feeling might be a great option in life, but, while taking financial decisions, you need to set a budget to go with the decision. Sales talk is designed to break this iron clad resolve.
Zero Research – As mentioned earlier, there are host of banks and financial institutions claiming to provide best affordable car loan along with added privileges like cashback, festive bonus, gifts, and other perks, but, it is your duty to do a thorough research and make sure that you don’t end up paying more in order to enjoy special perks and privileges offered by the lender. Make sure you read and completely understand each terms and conditions, raise the query (if any), and then sign on the dotted line.
Hypothecation Formalities – Most borrowers would skip this factor while buying a new car, where it is hypothecated to the lender, after which they are liable to seize your car in case of any default payment of the EMIs. The lender’s name will be on the car’s registration certificate and the hypothecation will be removed only after getting a loan closure with No Objection Certificate addressed to RTO.
Hence, make sure you thoroughly understand the terms and conditions and evaluate each factor before buying a car loan online or offline.
|Submit Income Proof||Bank Statement (last 6 months)
Salary-Slips (last 3 months)
Income Tax (IT)- Returns (last 2 years)
|Lender wants to authenticate your ability to repay the borrowed amount.|
|Submit Proof of Address and Identity||Passport, PAN Card, Aadhaar Card, Voter’s ID etc.||Lender wants to validate your nationality, identity and permanent address.|
|Proof of Insurance and Driving License||Copies of the Vehicle’s Motor Insurance and your Driving License.||Lender must ensure that all laws and protocols are followed with regards to the purchased vehicle.|
|Credit History||PAN Card||Lender wants to check your past credit records and establish if you can be trusted to make regular repayments.|
|Information About Vehicle||Sales Receipts from the Showroom from wherein the Vehicle was Purchased.||Lender must confirm that the deal was affected as intended.|
|Bank/Lender Name||Car Loan Interest Rate||Loan Processing Fees|
Rs.3500 to Rs.5500
Rs.2825 to Rs.5150 (depends on the loan amount)
Rs.2500 to Rs.5000 (depends on the loan amount)
Bank of India
Rs.500/- plus S.T. or 1% of loan amount. Min: Rs.500 and Max: Rs.10,000
Punjab National Bank
1% of the loan amount. (Max-Rs.6000)
Up to 2 Lakhs: Rs.1.25 per thousand. Minimum: Rs.125/-
Above 2 lakhs: Rs.200 per lakh.
State Bank of India (SBI)
0.50% of Loan Amount +ST
Gone are the days when one has to shell out loads of money for the purchase of a new car. Now the financial market is quite active and one can easily avail best car loan in India. This loan is a popular financing tool for owning a favourite four-wheeler. Apart from this, there are other benefits too of a car loan online. Let’s check out them in a quick glimpse.
Wider eligibility – As the competition in the market is increasing, the dealers are offering wider eligibility terms among the customers from all walk of life. This makes it affordable for anyone meeting the basic minimum income criteria to avail a loan from prominent banks and financial institutions.
Easy processing – Also, the loan application process is quite easy and hassle-free. In order to woo maximum number of customers, several lenders have introduced the service on the digital platform as well. Overall, the documentation and approval process takes less than 72 hours of time. With online car loan application, the applicant can apply for the loan at the comfort of their home and office.
Lower money margin – Generally, the banks offer finance facility up to 95% of the on-road car price which lowers the financial burden of additional expenses such as accessories, insurance, and vehicle registration. This makes it possible for even a middle-class individual to purchase the vehicle with minimum funds available.
Collateral security – Car loan is termed as the secured loan where the vehicle itself acts as the collateral eliminating the need of providing additional security against the loan.
Boosts CIBIL score – Another benefit of opting for a car loan is that regular and timely loan payments boosts the borrowers’ credit score, which ultimately makes them eligible for the exciting loan offers in the near future. The banks and financial institutions keep a close eye on the individuals having CIBIL score above 700 and propose loan offers at competitive interest rates.
Flexible EMIs – This is another factor in the benefit list. As every borrower falls under different income bar, one has got the freedom to opt for flexible EMI options that suits best to their income and budget. However, it is best to opt for a shorter tenure otherwise the borrower has to pay huge amount as the loan interest.
|Bank||Interest Rates||Loan Amount||Processing Fees||Foreclosure Charges||Tenure|
|Axis Bank||9.5% – 15%||Rs. 1 lakh onwards||Up to Rs. 5,500||10% of the principal outstanding till 6 months and 5% thereafter. Two-part payments allowed every financial year||Up to 7 Years|
|HDFC Bank||11.50% – 13.75%||Up to 100% of ex-showroom price||Up to Rs. 5,150||
||Up to 7 Years|
|ICICI Bank||10.75% – 12.75%||Up to 100% of ex-showroom price||Up to Rs. 5,000||
||Up to 7 years|
|State Bank of India (SBI)||9.65% onwards||Up to 85% of on-road price||Nil||No foreclosure charges||Up to 7 years|
|Punjab National Bank (PNB)||9.40% to 9.75%||Up to 85% of on-road price||1% of loan amount subject to max. of Rs. 6,000||
||Up to 7 Years|
As there is an exhaustive market of both new and second-hand cars waiting to be driven out of the showrooms. As the competition is higher among the vendors and people are excited to drive home their favourite car, there are certain things they skip to keep in mind. So, let’s take a closer look at some of the concerns that most people overlook.
Be serious – First of all, while stepping into a car showroom, remember that you’re not here just for a casual shopping. Showing genuine interest for the purchase encourages the salesperson to attend the customer with due diligent. Know their offers and terms and try negotiating according to your needs and budget and the rest is up to the deal to convince you to make a final purchase.
Leverage internal competition – Though the ex-showroom price of the car remains same with almost every dealer in the city, but there’s also an internal competition among the dealers and each of them is trying to get the customer to increase their sales. So, let the dealer know that you are hunting for other dealers too; this way you can zero down the offer at lowest EMI on car loan.
Use your bargaining skills – You’ll be surprised to know the variations on final price of a car. Thus, make sure to best use of your bargaining skills while dealing with the dealers.
Schedule it right – While signing in to car loan, the biggest challenge is to get the lowest interest rate with flexible terms. So, if you are hunting for ways to negotiate the best rate of interest, then avoid walking into a showroom during the first fortnight of the month. This is because the dealers work on targets, and thus, walking-in during the second half of the month can get you better financing terms.
|Abu Dhabi Commercial Bank Car Loan||Bank Bank Of Baroda Car Loan||Barclays Bank Car Loan|
|Syndicate Bank Car Loan||Union Bank Car Loan||Yes Bank Car Loan|
|Tamilnad Mercantile Bank Car Loan||United Bank Car Loan||Axis Bank Car Loan|
|Chinatrust Commercial Bank Car Loan||DBS Bank Car Loan||Development Credit Bank Car Loan|
|Uco Bank Car Loan||Vijaya Bank Car Loan||Federal Bank Car Loan|
|Allahabad Bank Car Loan||Bank Of India Car Loan||Canara Bank Car Loan|
|Bajaj Finserv Car Loan||Bank Of Maharashtra Car Loan||Catholic Bank Syrian Bank Car Loan|
|Central Bank Of India Car Loan||Corporation Bank Car Loan||Deutsche Bank Car Loan|
|City Union Bank Car Loan||Dcb Bank Car Loan||Dhanalakshmi Bank Car Loan|
|Exim Bank Car Loan||IDBI Bank Car Loan||IOB Car Loan|
|Ge Bank Money Car Loan||Indian Bank Car Loan||Jammu Kashmir Bank Car Loan|
|Hsbc Bank Car Loan||Indusind Bank Car Loan||Karnataka Bank Car Loan|
|Karur Vysya Bank Car Loan||Nainital Bank Car Loan||Punjab National Bank Car Loan|
|Kotak Bank Car Loan||Oriental Bank Car Loan||Ratnakar Bank Car Loan|
|Lakshmi Vilas Bank Car Loan||Punjab And Sind Bank Car Loan||Reliance Car Loan|
|Royal Bank Of Scotland Car Loan||South Indian Bank Car Loan||State Bank Of Mysore Car Loan|
|SBI Car Loan||State Bank Of Bikaner Jaipur Car Loan||State Bank Of Patiala Car Loan|
|Sidbi Car Loan||State Bank Of Hyderabad Car Loan||State Bank Of Travancore Car Loan|
|PNB Car Loan||Saraswat Bank Car Loan||Cosmos Bank|
|HDFC Bank Car Loan||Andhra Bank Car Loan||Magma Car Loan|
|ICICI Bank Car Loan||Dena Bank Car Loan||L&T Finance Car Loan|
|Auto Finance Companies|
|Audi Finance||L-And-T Finance||Renault Finance|
|Cholamandalam Finance||Mahindra Finance||Skoda Finance|
|Ford Finance||Maruti Finance||Shriram Finance|
|Sundaram-Car Finance||Toyota Finance||Volkswagen Finance|
|Used Car Loan Banks|
|SBI Used Car Loan||Bank of Baroda Used Car Loan||Canara Bank Used Car Loan|
|Allahabad Bank Used Car Loan||Bank of India Used Car Loan||Central Bank of India Used Car Loan|
|Andhra Bank Used Car Loan||Bank of Maharashtra Used Car Loan||Dhanalakshmi Bank Used Car Loan|
|Federal Bank Used Car Loan||Karur Vysya Bank Used Car Loan||Nainital Bank Used Car Loan|
|Jammu and Kashmir Bank Used Car Loan||Kotak Mahindra Bank Used Car Loan||Oriental Bank of Commerce Used Car Loan|
|Karnataka Bank Used Car Loan||Magma Used Car Loan||PNB Used Car Loan|
|State Bank of Mysore Used Car Loan||TamilNad Mercantile Bank Used Car Loan||Vijaya Bank Used Car Loan|
|State Bank of Patiala Used Car Loan||Union Bank of India Used Car Loan||HDFC Used Car Loan|
|Syndicate Bank Used Car Loan||UCO Bank Used Car Loan||ICICI Used Car Loan|
|Axis Bank Used Car Loan||Dena Bank Used Car Loan||State Bank of Hyderabad Used Car Loan|
|TVS Used Car Loan||Lakshmi Vilas Bank Used Car Loan||State Bank of Travancore Used Car Loan|
|IndusInd Bank Used Car Loan||State Bank of Bikaner and Jaipur Used Car Loan||United Bank of India Used Car Loan|
|Capital First Used Car Loan|
Whenever you sign a car loan agreement, it simply means that you legally agree to make timely repayments for a given tenure. However, there comes time when situations are not the same as expected, resulting in car loan default. Whether it’s a job loss, accounting error, or even divorce, the lender is only concerned about their payments and not with the borrower’s personal issues.
When you default loan payments, it not only damages your credit score, but could also make you lose your car. However, the default can occur right after a missed payment or months later, subject to your loan terms and agreement.
Technically, a loan default happens when a borrower repeatedly fails to make timely loan repayments on the agreed terms to the lender. Usually, lenders have prescribed number of payment failures resulting in default is specifically mentioned on the agreement. Moreover, everything about the loan term and defaults are explained in details. Therefore, it is said to read and understand the agreement thoroughly before signing on the dotted lines. This would help you protect from the last minute surprises.
Credit score dips – Even a single missed payment can result in a credit score dip. However, the lender will notify you about the due dates or missed payments via email, SMS, and call, and typically provides a short period of time to make the payment or resolve the issue. Not doing so, could result in credit score drop.
Debt goes to collections – As aforementioned, the lender notifies a borrower about the missed payments, and if the payments are not made even after 30 days, the debt goes to collections. Once the debt goes to collections, your credit score will dip even more and you’ll be also pressurized by the collection agencies to make the payments as soon as possible. This will trigger both mental as well as financial anxiety.
Negotiate with the lender – If you’re not responding to the collection agencies’ attempt to contact you, the probably wouldn’t send any notice or alert before seizing your car. So, before such things happens, it better to get in touch with the lender to quickly negotiate on the due amount and resolve the issue. Even if you agree to make a portion of the payments due, the lender would rather prefer to settle the account than repossessing your car.
Asset seizure – If you failed to even to settle the due payments, your asset (car) will be ultimately seized. Although, the good news is even if a lender seizes your car, you have a short period of time to arrange the due payments and reclaim the asset.
Having a four-wheeler is no more a luxurious asset, thanks to car loan finances that has made it possible to afford a car without shelling out hefty money. As the four-wheeler demand has increased over the past few years, its parallel market of used car finance is also getting a boom. Of course, not everyone prefer buying a brand new car, especially when they are not experienced driver. Also, used cars are less expensive than that of a new ones, though in excellent condition. Moreover, depreciation rate of used car dips at a slower pace as compared to the new cars.
Affordable – Although, the days are gone earlier when the car was considered luxurious, still there are some people who cannot afford to buy expensive cars. But, thanks to used car finance that has made luxury cars quite affordable.
Depreciation – As soon as new cars come out of the showroom, their price is depreciated to half of their price, which is not the case with second-hand car purchase.
Flexible tenure – Unlike a new car loan, used car finance, too, has a flexible tenure ranging from 12 months to 84 months (7 years).
No collateral required – No need to pledge any collateral or security against the loan. The car itself acts as a security against the loan.
Variety of options – Even though it is a used car loan finance, buyers have ample of options to choose their favourite car from. The options are not just restricted to a few models or brands.
Car loan is definitely an easy way to bring home your favourite vehicle home, but that comes with great financial responsibility as well. Thus, it is important to get the loan at the right time and with the thorough research, of course. You should know exactly how much amount you’ll be repaying along with the calculated interest and see if you are okay with the remaining monthly budget after deducting regular EMIs out of it. Going with the strategic and well-calculated financial planning can get you on a long way, but one wrong decision can land you in spiral of debt. Hence, be sure of your finances and budget before opting for a car financing scheme.