How To Get CAR LOAN

Riya KapoorApril 25, 2022

7 minutes read

Table of Contents

Car loan emi calculator, interest rate, calculator,sbi interest rate from which bank is available at low-interest friends if you want to buy a new car! And want to take a branded car or take a second-hand car! For this you will need money, if you do not have money, you cannot buy a car. So today, we will tell you through this post how you can buy a car and get the car financed.

Car loan details

Car loan companies and banks also give loans on new cars and used cars. However, the interest on the loan amount on new cars and used cars varies. The interest rate on a new car is as low as 9.25% and up to a maximum of 13.75%. And the interest in the old car ranges from 12.50% to 17.50%.

Who can take a car loan?

Friends, it is essential to take care of some essential things and the banks’ terms and conditions for taking a car loan! It is necessary to fulfil such as age and income source, type of job, etc.

What are the documents required to take a car loan?

Proof of Identity- (Valid Passport, Valid Driving License, Voter ID)
Address Proof (Aadhaar Card, Domicile Certificate, Electricity Bill will be valid for the last 3 months)
Age proof
4 passport size photographs
Car Papers/RC
Salary slip of 3 months if the applicant is salaried
6 months bank statement of the applicant,
ITR/ Return File
Income Proof
Some companies or banks also take a photocopy of the car’s insurance.
Does not give loans without a driving license

Why should I have to give a hypothecation letter?

When you buy a car by taking a loan, some property documents have to be mortgaged. Due to this, the lending company or bank has security, and they have full rights. If you do not repay the loan instalments or the loan amount on time, they can confiscate the mortgaged property held by you.

Friends, a hypothecation letter is essential for the car registration process. Once you repay the loan amount in full (Car Loan), you can later remove the hypothecation of the lending company/bank from the registration paper!

To remove the hypothecation letter, you have to submit a No Objection Certificate in its respective registration transport office. And you have to go to the transport office with the car insurance paper and address proof.

The most important thing that you have to take care of well is that from the loan company. NOC should be taken. After that, you give the noc to the insurance company. Insurance papers should be issued in the name of a new car owner.

How much loan amount can be availed by taking a car loan?

How much one can get a car loan depends on the bank or company that gives that loan. How much loan amount does he approve you and the most important thing is this! When taking a loan, the loan amount depends on your income or income thinking. A loan is given to you according to your annual income. The loan companies first check your income or business. How much income do you have, and from which you can repay the loan amount or not!

A car loan company or bank can provide 80 to 90% of the necessary loan amount. Some banks or companies give full loan amount up to 100%. This can be financed at an ex-showroom price or on-road price.

Ex-showroom price is the amount to be paid to purchase any car. And when you buy after paying registration charges, car insurance, on-road tax, etc. If you bring the car to drive on the road, this is the on-road price!

When you take a loan for any used car, whatever it costs you in re-registration! that expense is not covered.

What is the interest rate on a car loan?

On the car loan amount, the loan companies/banks also charge some other charges in addition to the Marginal Cost of Funds (MCLR). But these rates are fixed, due to which it becomes straightforward for you to repay the loan amount. And you can quickly repay the loan amount without any problem.

Friends, if you feel that any scheme may reduce the interest rate in the future, you can pay interest on the floating rate. Currently, your loan interest rates are as low as 10.30% and up to a maximum of 15.25%.

Some lending companies and banks also give a lot of discounts on the interest rate on taking a car loan to women.

Friends, if you do not take a new car and take it out entirely and are thinking of taking a loan on it or taking a loan! Taking this loan can prove to be very expensive for you! Because many banks and lending companies charge more interest on used cars.

What is the processing fee for taking a car loan?

Friends, before taking a car loan from any company or bank, you should know this completely! How much processing fee will be charged by the bank from whose company you are thinking of taking a loan. So let us tell you that you may incur a processing fee of 0.4% to 1% on the loan from any company’s bank.

What are the prepayment and payment facilities available for taking a car loan?

Prepayment – Friends, there is this facility of the premium end when taking a car loan! You can prepay 1% of the loan amount if you have money. However, some banks and companies charge charges even on prepayment. And the most important thing is that you cannot afford prepayment till 6 months after taking the car loan.

Car Loan Repayment-

Friends, the most important thing is that most car loans are given for one to seven years. You can pay it ahead of time at your convenience.

Keep these things in mind –

Friends, before taking a car loan, you should know completely which bank is giving how much loan on loan. And which bank is charging how much interest (Car Loan)! Many banks charge less interest on a loan, and many vacancies charge more interest on a loan.

If you take a used car, you want to get that car financed. Getting your used car financed can be costly! Because all the companies and banks charge more interest on the loan amount on taking a loan on a used car.

Suppose this car is bought in another person’s name. So no deduction can be claimed on any depreciation in Income Tax / ITR for the same. And there is no tax benefit of any kind on the loan.

Before taking a car loan from any bank or company, you should calculate the interest rate charged by it when taking the loan itself.

Best Car Loan bank name – Low-interest car loan banks

SBI BANK CAR LOAN

SBI Bank gives car loans at a very cheap interest rate.
If you apply for a loan through the YONO app. You will get a loan on a loan with an interest rate of 7.5% and no processing fee at all.
If you do not apply for a loan from the YONO app, you will get at least 7.5%! And maximum interest will be charged at the rate of 8:45% per annum. You will pay a separate processing fee of 0.4% GST on the loan amount.
One can finance up to 90% on-road price with a loan from SBI Bank. And the interest is calculated every day with a decreasing balance.
And to take a car loan from SBI, you get up to 7 years to repay the loan amount.

Bank of Baroda Car Loan

You can get a car loan finance of 90% on-road price by taking a loan from the Bank of Baroda.
Customers who have a good home loan and credit history through this Bank of Baroda. So they also get a discount of up to 0.25% on the car loan’s interest rate.
By taking a loan from this bank, you get 7 years to repay the loan amount.
On taking a loan from the Bank of Baroda, your daily balance is deducted, and interest is reduced.
You get a zero point 5% processing fee for taking a loan from the Bank of Baroda.
On taking this car loan from the Bank of Baroda, you will get an interest of at least 7.25% and a maximum of 10.1% per annum.
You can get loan amount up to Rs.1000000 from Baroda Bank

Canara Bank Car Loan

Canara Bank Central and State Government Autonomous Bodies for cars up to 20 lakhs for PS use personnel. Car loan finances up to 90% and 80% for expensive cars. And 90% for cars up to 15 lakhs and 20 to 25 lakhs for other employees! Loans up to 85% for car value of Rs.85,000 and above for car loans of 80%.

On taking a loan from this bank, you will get an interest of at least 7.3% and a maximum of 9.9% per annum.
Canara Bank gives you 84 months to repay the car loan amount
You will be charged a processing fee of 0.25% of the loan amount for taking a loan from this bank

HDFC Bank Car Loan

HDFC Bank offers car loan finance up to 100% for certain cars.
This bank gives you a minimum of 12 months and a maximum of 84 months to repay the loan on taking a loan To repay the loan amount.
You will be charged a minimum processing fee of 1% of the loan amount to avail of HDFC Bank Loan.
You will get 8.8% to 10% annual interest on taking this HDFC Bank car loan

ICICI BANK Car Loan

You get 100% on-road price finance when you take an ICICI Car Loan
This bank gives you 12 to 35 months to repay the loan amount so that you can repay the loan very quickly.
Friends, if you are taking a loan from ICICI Bank! You have to repay the loan amount within 12 to 35 months. So you will get interested up to 9.85% per annum.
If you want to repay the same loan amount in between 36 to 84 months. Gives you a car loan at an interest rate of as low as 7.9 percent and a maximum of 8.80% per annum

How to use Car Loan EMI Calculator?

Use this car loan emi calculator to
First, you have to enter the loan amount
After that, you have to enter the interest rate
And after that you have to enter the time

After doing this process, this calculator will show you how much EMI you have to pay

What is Car Loan EMI?

Instalment (car loan emi calculator) loan amount and interest are shown in full every month in EMI. Hence, EMI = Principal Amount + Interest paid on the loan. That EMI, generally, remains fixed for the entire tenure of your loan. And the loan has to be repaid during the loan tenure monthly.