You can get a car loan in India with both brand-new and pre-owned cars. But the interest rates are different for each of them. For a brand-new car the interest rate is lower, in between 9.25 to 13.75%, and for buying a pre-owned car, the interest rate will be 12.50 to 17.50%.
Eligibility for the Loan
When you apply to any financial institute, there will be some eligibility criteria, and they are different in different financial institutes. Though there will be some common criteria which everyone must fulfill, such as, your age, your employment type, what’s the minimum salary you draw, or if you are a businessperson you have to show your income proof as well as the taxes you pay, and your residential address.
Documents you need to furnish
- Identity Card, for example, Aadhar, Permanent Account Number (PAN) Card, Passport, Driving License, etc.
- Age Proof
- Car Documents
- Address Proof
- Three months salary slips or six months bank account statement, and income-tax return.
A lending institution levies numerous costs while approving the lending application or on the very early financing closure.
When the application is refined, handling charges are billed. It differs from one financial institution to another as well as remains in the 0.4-1% variety of the funding quantity.
The loan providers additionally bill some costs on very early car loan closure, referred to as ‘foreclosure charges,’ it is billed on the exceptional funding quantity. This cost differs from one financial institution to one more, currently varying in between.
A customer can pre-pay lending. There are some fees entailed in such an instance.
Lenders use a versatile payment duration usually extending in between 1 and seven years. One can select the payment duration as one’s comfort.
Many financial institutions fund all medium-sized as well as small-sized cars, sport utility vehicles (SUVs) and also multi-utility Vehicles (MUVs). It is, nevertheless, will be smart to inspect the checklist of automobiles that can be funded by the lending institution for the optimum quantity provided with fewer charges.
The vehicle purchased in a person’s name cannot declare any kind of devaluation as per the Income-Tax Regulations. There are no tax benefits on taking a vehicle loan.
When one buys a car via loans, the interest they will be paying on loan will be the actual amount one will spend. Individuals have to be cautious of the expense while taking financing.
You can visit auto loan in Hyderabad for getting more information on car loans.