Auto Loan

2 Types of Car Loans are available in India:-

1. Personal Car Loan

New Car Loan - This type of car loan can be taken to purchase a new car straight out of the showroom, available for most of the models available in the market.

Features

• Interest Rate from 9-14% p.a.
• Tenure from 1-7 years.
• 85-100% financing at on road price of the car.
• Quick Disbursal
• Easy payable EMI

2. Commercial Vehicle Loan

Getting a loan for purchase of commercial vehicle has now a days become very easy. Many banks and financial companies are providing the loans at very liberal terms and conditions.

• Fast processing.
• Greater flexibility.
• Maximum tenure of 60 months.
• Competitive rates.
• Customised financing

Eligibility

Individuals, proprietorships, companies, partnership firms, trusts and societies

• Loan Amount - 1 Lac to 5 Crore.
• Minimum age of 24 years.
• Maximum age of 60 years.
• Total working experience – minimum 2years.
• Experience in current employement/busines – minimum 2 year.

Documents:

• Loan Application
• Passport Size Photograph
• Income Proof – 6 months bank statement, 3 months Pay Slip, Form 16 & IT Return.
• Age Proof – Aadhaar Card/PAN Card/Voter's ID card/Driving License/Passport
• Identity Proof – Aadhaar Card/Voter's ID card/Driving License/Passport
• Address Proof – Rental agreement/Voter’s ID Card/Passport/Ration card/Tel bill or Elec. Bill/Trade License/ Sales Tax Certificate
• Vehicle Ownership Proof
• RC Copy
• Insurance Copy
• Vehicle valuation report in case of old commercial vehicle.

Car Refinancing

If you find yourself in a big problem with your existing auto loan, and want to reduce your loan payments.

Car refinance is a kind of secured loan which is provided by several banks and NBFCs to repay the existing balance of a car loan.

Why to go for car refinancing?

• To lower the interest rates – In case, it is found that similar loans are available in the market with lower interest since the time of original loan, it is advisable to take the new loan at lower interest to repay the older loan and enjoy the benefit of lower interest.
• To reduce the EMI payments – New EMI as per the terms & conditions of the new loan can be fixed meeting the current financial capacity.
• Change in loan tenure – New loan with new tenure can be taken to repay the older one.
• To enjoy flexibility – New loan with new features can be taken to pay the older loan with the rigid terms.
• To change the lender – In case lender is to be changed for the reason of its inconvenient procedures or dealings, loan can be repaid by the loan refinancing with the new lender.
• Removing or adding a co-signer – Co-owners have the obligation to pay the loan in case of failure on borrower side. In case, any change is to be made in the name of co-signer, refinancing can be considered from another lender.

Things to keep in mind while refinancing:-

• Prepayment Charges of the existing loan.
• Processing fee & other charges.
• Depreciating car value.
• Reputation of the lender.