Car Loan

Banks provides car loans towards its customers with interest rates and for a certain specified term. You could take the loan for 90% to 100% of the on-road price of the car

Note: The interest rates shall differ from one bank to another. 

Eligibility Criteria For Car Loan

The eligibility criteria for car loans could be different for different banks. The common standards are:

•    The borrower's age must be between 18 years and 75 years

•    The borrower's minimum net monthly income of Rs. 20,000

•    At least 1 year of employment with the present employer

•    The borrowers should be salaried or self-employed, working for a government establishment or a private corporation

Documents Required For Car Loan

As Identity proof (any of the following)

•    Aadhaar card

•    Passport

•    Driving license

•    Voters ID card

•    PAN card

As Address proof (any of the following)

•    Aadhaar card

•    Passport

•    Driving license

•    Ration card

•    Utility bills

As Proof of income

•    Form 16

•    Salary slips if you are salaried

•    Latest Income Tax Returns

•    Bank statements going back 6 months

Some of the best car loan products a borrower could choose for in 2019:

HDFC Bank Car Loan

•    100% financing of on-road price for selective models

•    The maximum loan sum could be Rs. 3 crore

•    Balloon EMI, as well as Step-up EMI, make it simple to purchase bigger cars at smaller EMIs

•    The borrowers could take a top-up loan after 9 months

•    Backing for comprehensive insurance

ICICI Bank Car Loan

•    The complete on-road price of the car could be funded through this loan

•    Existing consumers are pre-qualified and pre-approved for car loans

•    The maximum loan sum is based on customer profile, car cost, model variant, etc.

•    Rate of interest depends on the tenure of the loan

SBI Car Loan

•    Interest calculated on daily reducing balance

•    Financing is calculated on the on-road price of the car

•    You could take the Loan if you work for the government or a private firm

•    Self-employed persons, agriculturists, professionals, and businessmen could apply for a loan under the SBI Car Loan Lite scheme, without submitting any proof of income

•    The maximum loan sum depends on the category the borrower fall under

Axis Bank Car Loan

•    The borrower could apply for a small amount under this scheme; loan amount starts from Rs.1 lakh

•    Funding up to 100% of on-road cost on select models

•    Terms of up to 8 years

•    No bank statements and income documents required if you are pre-approved or have a salary account

Federal Bank Car Loan

•    Funding of up to 100% of ex-showroom cost

•    Longer repayment terms of up to 84 months

•    No income documents needed

•    Free personal accident insurance for the borrowers that offers coverage up to Rs.10 lakh

Canara Bank Car Loan

•    Financing of up to 80%/85%/90% of the on-road price

•    Car loans are given to new and used cars (not above 5 years old) at the lowest interest rates

•    Long repayment term of up to 84 months

•    If the car is registered to a woman, the rate of interest is lower by 0.05%

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Author:

eStartIndia Team