Car loans are offered to both salaried and self-employed. However, if you plan to apply for a car loan, your research shouldn’t finish with choosing the vehicle. Make sure you comply with all of the requirements for a car loan.
The tenure of car loan varies from a few months to 3 years depending on the bank. You can choose any repayment option from 12 to 84 months.
Quick, easy personal loans may become difficult now as RBI tells banks, NBFCs to be more careful
Here are the top banks’s car loan interest rates.
The minimum amount also varies, Kotak Mahindra Bank customers can borrow up to 90% of the car value. The minimum loan amount is Rs. 75,000. At Axis Bank, Car Loans starts from Rs. 1 lakh onwards.Some of the factors we consider when deciding on a loan amount are:
- Your requirement and eligibility
- Your income
- Your repayment capacity
Lower Credit Score may lead to the approval of lower loan amounts. Make sure your Credit Score is more than 750, which is generally considered excellent. Interest rate may also vary as ROI is linked with CIBIL Personal Score (in case of individuals).
Documents required for a Car Loan
- Here’s a summary of documents you will need for a Car Loan:
- Valid Identity Proof (PAN Card/Aadhar Card/Passport/Voter ID)
- Address Proof (Utility Bills/Aadhar Card/Driving License/Passport etc.)
- Income Proofs (Current Salary Slips/Latest Form 16/Current ITR)
- Current Bank Statements (Last 6 Months)
Can you get 100% funding to buy a car?
HDFC Bank offers up to 100% on-road funding for select models of cars. You can get a Car Loan up to Rs 3 crore.
What security you have to furnish for availing the Car Loan?
According to the SBI website, “A charge on the vehicle financed is noted with local Transport Authorities . Your spouse’s guarantee, if his/her income has been considered for fixing the loan amount, would also be required. Some other security may also be required in certain cases.”
What is the rate of interest on Car Loans and is it fixed or floating?
Axis Bank offers fixed interest rates, SBI also offers fixed rate- It is applied at the time of disbursement will remain same for the entire loan period.