It is a car loan which is granted to a customer who want to purchase a new car
A car loan also known as automobile loan,is a sum of money a consumer borrows in order to purchase a car.
We at Loan4fauji offer car loan of various Banks to compare & choose cheapest among all for Military which includes individuals working in Army, Navy & Airforce, Paramilitary which includes individuals working in CISF, CRPF, BSF, ITBP, SSB and Ex-servicemen.
It is a car loan which is granted to a customer who want to buy a second hand or a used car at a little higher interest rate.
Every Bank or NBFC providing a car loan have different eligibility requirement and needs. Still there are some common criteria for all the Banks & NBFCs. Before applying it is advisable, to check eligibility on Eligibility Calculator.
Following are the benefits which you can get when you apply for Car Loan
|Bank||Car Loan Interest Rates||Lowest EMI per lakh for Max Tenure||Maximum Loan Amount|
|HDFC Bank Car Loan Rates||9.25% Fixed||₹ 1,622 for 7 years||100% of ex-showroom price|
|SBI Car Loan Rates||8.00% Floating||₹ 1,559 for 7 years||85% of on-road price|
|ICICI Bank Car Loan Rates||9.30% Fixed||₹ 1,624 for 7 years||100% of ex-showroom price|
|Axis Bank||9.25% Fixed||₹ 1,478 for 8 years||90% of ex-showroom price|
|IndusInd Bank||10.65% Fixed||₹ 2,157 for 5 years||85% of ex-showroom price|
|Kotak Bank||11.50% Fixed||₹ 2,199 for 5 years||90% of ex-showroom price|
|PNB||8.75% Floating||₹ 1,596 for 7 years||85% of on-road price|
|Union Bank of India||8.60% Floating||₹ 1,589 for 7 years||85% of on-road price|
|Central Bank of India||9.00% Floating||₹ 1,609 for 7 years||90% of on-road price|
|Andhra Bank||9.40% Fixed||₹ 1,629 for 7 years||85% of on-road price|
|IDBI Bank||9.30% Fixed||₹ 1,624 for 7 years||90% of ex-showroom price|
|Federal Bank||9.15% Fixed||₹ 1,617 for 7 years||90% of ex-showroom price|
|Bank of India||9.50% Floating||₹ 1,634 for 7 years||85% of on-road price|
|Bank of Maharashtra||9.25% Floating||₹ 1,622 for 7 years||85% of on-road price|
|Corporation Bank||9.55% Floating||₹ 1,637 for 7 years||85% of ex-showroom price|
|Indian Bank||9.65% Floating||₹ 1,642 for 7 years||85% of on-road price|
|OBC||9.05% Floating||₹ 1,611 for 7 years||85% of on-road price|
|Bank of Baroda||8.90% Floating||₹ 1,604 for 7 years||85% of on-road price|
|United Bank of India||9.10% Floating||₹ 1,614 for 7 years||85% of on-road price|
When applying for a Car Loan, do customer need a guarantor/ security?
Car loan is generally a secured loan in India because the car itself act as the collateral on your Car loan. Generally lenders will not ask for guarantors on your car loan but when your income is not as per the requirement of the car loan then you may be expected to sign-up a co-applicant and/or guarantor.
What are the generally available car loan repayment tenures in India?
Generally the tenures ranges from 12 months to 84 months.
How much down payment do the customer need to make to buy a car?
There is not specific rules for paying specific amount or percentage of down payment but a higher down payment is always beneficial for the borrower.
Does the customer can get 100% car cost from the lender to buy a car?
The maximum amount of loan that the customer can get from lender depends upon the lender. Most banks offer financing up to 90% of the on-road price of the car but there are some banks which offers financing for up to 100% of the car’s on-road price.
How does One Make EMI to Banks?
Generally the lenders offer various modes for loan repayment. One may issue standing instructions to the bankers to pay the instalment through ECS (Electronic Clearance System), opt for direct deduction of the monthly instalments by your employer or issue post-dated cheque from a salary account.
Can a customer pre-pay the entire loan amount?
Yes, the customer can prepay the entire car loan and save on interest payments. However, most banks will allow the pre-payment option after you have paid off 6 months of EMI on your loan tenure. In addition with this, the customer will be required to pay a small fee as pre-payment penalty that will be dependent on the leftover loan amount.
Do banks offer loan for used cars?
Yes, many Banks and NBFCs offer loans to buy used cars. These lenders offer car loans for up to 85% of the car’s value. However, the car should not be more than 5 years old.
What will lenders look for when a customer apply for a car loan?
Generally, the lenders look for the customer’s credit score, employment status, residence and job stability, income & debt-to-income ratio etc.