A car loan is a simple lending of money by organizations to buy you a car. Sometimes it becomes difficult to bear with the cost of the car you want to buy, so companies or organizations finance your car or provide you with a loan. They charge their interest on the amount they are lending and fixes the EMI’s for a customer.
THINGS REQUIRED FOR EASY CAR LOANS
* Documents of the car
* Entity of the owner
* Promissory Note
* Reason for a car loan (personal or for other purposes)
* Credit history
These things will be asked by financial institutions such as bank or companies.
The contract is signed between the lender and borrower which includes the rate of interest, vehicle name, vehicle model, date of manufacturing, money lent, time of repayment, down payment, and many more.
BANKS PROVIDING YOU CAR LOANS
Here are the names of some bank providing you the Cheap Car Loan :
☆ SBI Car Loan
☆ ICICI Car Loan
☆ HDFC Car Loan
☆ AXIS Bank Car loan
☆ Kotak Car Loan
☆ PNB Car Loan
☆ CANARA Bank Car loan
☆ Bank of India Car Loan
☆ IDBI Car Loan
☆ Yes Bank Car Loan
TOP 5 BANKS PROVIDING CAR LOAN AT CHEAP INTEREST RATES
#1- PNB – Punjab National Bank provides you the car loan at the interest rate of 9.40 % to 9.75 %. They provide you the Loan Amount up to 85% of cars on road price.
#2- Axis Bank – Axis Bank provides you the car loan at the interest rate of 9.5% To 15 %. They provide you the Loan Amount Rs. 1 lakh onwards.
#3- HDFC Bank – HDFC Bank provides you the car loan at the rate of 11.50 % to 13.75 %. Although the rate of interest is high. HDFC gives you Up to 100% Loan Amount of ex-showroom price.
#4- ICICI Bank- ICICI Bank provides you the car loan at the rate of interest 10.75% to 12.75% and give 100% Loan Amount of ex-showroom price.
TERMS AND CONDITIONS FOR CAR LOANBanks offer car loans on the basis of :
* Down Payments: Most of the banks seek attention to take at least 15% to 20% down payment by the customer. People usually choose the banks that allow you to deposit a lower margin of downpayment. However, there are banks and companies that allow you to do so but the price of EMI payable is fixed on the behalf of down payment. Higher the amount of down payment lesser the EMI payable . This may also decrease the loan interest rates.
* Interest Rates and Tenure: Before opting for a loan, including Car loan you should calculate the total interest payable on the amount. Different banks offer a different rate of interest. To compare the rates on websites like www.paisabazar.com and choose the wise option.
* Credit History: This is based on the transactions done by you during the specific time. Banks provide you with credit score on each financial transaction. The score must be up to 750 to take a loan. The Credit score can be analyzed by the user itself on websites like www.paisabazar.com.