Today, it is almost everyone’s dream to own a car and this dream can be easily fulfilled with a car loan. Getting an auto loan is pretty easy. But finding the best rate requires a dedicated search. You can apply for auto loans with any public or private sector bank and auto finance companies. Several banks and car finance companies in India offer loans on almost all car models.
In India, loans are made for new, used and cash automobiles. There is no upper limit to the amount of an auto loan. The maximum loan amount is 2.5 times your annual net income. In addition, the loan can be applied jointly, in that case the income of your spouse can also be considered. The loan amount for a new car includes financing for the single road tax, registration and insurance premiums. There is no limit on the amount of the new car loan. You must deposit margin money for new car loans and some banks for Bad credit auto loans in Alberta as well. For example, the country’s largest lender from the State Bank of India (SBI) takes margin money on new / used vehicles: 15% of the price on the road.
Eligibility criteria for obtaining auto loans, for example, from SBI are:
The age of a person seeking a loan must be between 21 and 65 years old.
A permanent employee of the state / central government, public sector company, private company or a reputable establishment or
A professional or self-employed person who is an income tax evaluates or
A person dedicated to agriculture and allied activities.
An individual’s annual net income must be Rs. 100,000 / – and above.
The maximum repayment tenure that SBI has set for a salaried person is 84 months and for professionals and self-employed workers it is 60 months. As a processing fee, 0.50% of the loan amount must be paid in advance, that is, the minimum amount is Rs. 500 and the maximum is Rs. 10,000. In case of rejection of the application after the pre-sanction survey, 25% of the processing fee is withheld.
Private sector banks like HDFC Bank, ICICI Bank, Citibank also offer car loans for various models, such as Citibank loans up to 90% of the car’s value, for a new Maruti car and 85% of the car’s value used. I want to buy.
In case your pocket doesn’t allow you to buy a new car, then you can go for a used car. For the used car the loan is also available. In fact, some banks arrange mela for used car loans in India. These melas are gaining popularity due to savings in terms of price. When buying a used car, there are several things to consider, such as verifying the vehicle’s ownership, its accident history, maintenance record, quality controls, and whether the vehicle is not stolen. It is very difficult for an individual to obtain the correct information on all these factors. In auto loan melas, it is the responsibility of the banks to take care of such formalities before displaying the car models. There is a rule that banks have to grant a year of warranty on any used car.
