LoanFinance

Easy Car Loan Guide For Beginners

A car loan is a loan taken by a bank or financial institution on EMI for a fixed period for the car. This loan is given by many government banks, private banks, non-banking finance companies on car loans in easy monthly installments.

Lending companies offer loans on both new and used cars, with interest rates between 9.25 -13.75 percent for new cars, while interest rates on used cars range between 12.50 and 17.50 percent.

Usually, this loan is financed up to 80-90 percent of the cost of the car. Instead, some banks and non-banking finance companies finance the car up to 100 percent. This could be the ex-showroom price or the on-road price.

Before applying for a car loan, some things should be kept in mind, which are as follows:

  • Your age should be more than 21 years and less than 60 years.
  • If you do a job, you should have a work experience letter of 2 years.
  • Your annual income should be more than three lakhs.
  • You should have a telephone bill and a postpaid bill.
  • You must have an income source.
  • You must be a citizen of India.

Documents for Car Loan

  • Proof of Identity (PAN Card, Passport, Driving License, etc.)
  • Age Proof
  • Address Proof like Voter I Card, Passport
  • Car papers
  • Photograph
  • Job Card issued by NREGA
  • Form 16 as latest three months salary slip and income proof
  • Bank Statement for the last 6 months
  • Proof of Income like Income Tax Return

How much will I get a car loan?

The car loan usually depends on the applicant’s age and salary, although the bank can grant the loan up to four to six times the income of the car loan applicant. The private bank can give you more loans than the government bank.

Car Loan Interest Rate | car loan interest rate

The interest rates for new cars range between 9.25 -13.75 percent, while for used cars, the interest rates range between 12.50 and 17.50 percent. This may vary depending on the bank/loan institution. Apart from this, you have to pay the processing fee and GST (Goods and Services Tax).

Car loan interest rate entirely depends on several factors-

  • What is the age of the applicant.
  • What is the income source of the applicant.
  • What is the annual income of the applicant.

The car loan is the fastest loan you can get. To know the interest rate of a car loan, you can learn about the interest rate by talking to the banking website, a non-banking finance website, their agent, and when you apply. If so, you get to see how much interest you will have to pay for how long.

Who can apply for a car loan

Salaried & Self Employed:

If you do a job, you should have more than 2 years of job experience. And if you are Self Employed, then your business should be more than 3 years old. Nowadays, you get this loan through some banking apps.

It can be taken through an Aadhar card and PAN card through a digital process, and the loan amount is given to you up to (80-90) percent of the cost of the car.

Business Man:

If you are a businessman, you should have all the details like a bank statement, photograph, ITR of last 2 years, Foam 16, salary slips, bank account details for the last 6 months. This loan depends on your credit score.

Farmer:

If you are a farmer, you will get this loan very quickly. For this, you have Address Proof, Govt. Valid Documents (Pan card, AAdhar card, Passport, Driving License), Bank Statement of last 6 months, Photograph, ITR of last 2 years, Foam 16, Audit Balance Sheet, Sales Tax Certificate should be all details.

This loan depends on the value of your car how expensive the car you have taken.

how to take a car loan from home

To get a car loan sitting at home, you can get a loan of 2 lakh to 10 lakh rupees in just 15 minutes through some banking websites apps like (SBI Yono mobile).

Let us know what you need to do for this:

  • Step 1. First, you have to install any banking apps from the play store.
  • Step 2. Next, with the help of a mobile number, you have to create your account.
  • Step 3. Now you have to submit the basic details with the help of an Aadhar card and PAN card, through which you will know the eligibility.
  • Step 4. Select the plans created by the system.
  • Step 5. Loan approval may take some time, so you have to wait.
  • Step 6. After the loan is approved, you have to submit the bank details to get an instant car loan.

Car Loan Repayment Last date

  • The repayment tenure for car loan EMI calculation is 7 years. You can use the Home Loan EMI Calculator to know how many days the car loan has to be deposited.
  • Suppose your monthly income is Rs 25000 and you want to take a car loan for 7 years at which the current interest rate is 7%, then you can quickly get a car loan of Rs 5 lakh. In this, the monthly installment of your car loan will be ₹ 7,546 per month.
  • Banks and lending companies have the legal right that your vehicle can be confiscated if you do not pay.
  • Keep in mind that once you repay the loan, it is necessary to take NOC from the bank’s lending company.

Instant Car Loan Kon Deta Hai

  • SBI Bank (yono App)
  • ICICI Bank (imobile App)
  • Canara Bank
  • PNB Bank
  • Rbl Bank
  • UCO Bank
  • Kotak Mahindra Bank
  • HDFC Bank

Conclusion

The car loan is one of the quickest loans available as it has lesser documentation requirements. Keep your budget in mind while buying a car. I hope that today’s post has proved to be helpful for you, in which I have told you all the information related to an instant car loan.

Also Read: How To Take Loan From ICICI Bank Online

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