Car Loan: Everyone dreams of owning a branded car that not only makes your life comfortable but also reduces many hassles. Whether it is reaching office early or going out on the weekend, a car makes everything easier. Although buying a car was a big deal earlier, as it required spending a hefty amount. But in today’s time, due to the easy availability of car loans, this dream has become very easy to realize.
How to get a car loan and who provides it?
Some banks and non-banking financial companies (NBFCs) easily provide car loans. You repay this loan in monthly installments (EMIs), which also includes interest. Banks and NBFCs offer loans for both new and used cars, although the interest rates vary.
New car: The interest rate ranges between 9.5% to 13.5%.
Old car: The interest rate ranges between 12% to 15%.
Important things before applying for a loan
Before applying for a car loan, some important documents are required, such as:
- Proof of identity (Aadhaar card, passport)
- Proof of address (electricity bill, ration card)
- Proof of age (birth certificate)
- Photograph
- Car documents
- Bank statement
- How much percentage of finance do banks provide?
- Some banks do not provide 100% finance, which means you may have to deposit 5-10% of the car’s price initially.
What is hypothecation?
When you buy a car by taking a car loan, the car is mortgaged with the loan giving bank or company. If you are unable to repay the loan, the bank can seize your car. This process is called hypothecation, which is a part of the car registration process. When you repay the entire loan, you can remove the hypothecation.
Where to apply?
Almost all banks provide car loans. If you have an account in a bank, then apply for a car loan in the same bank. For example, if you have an account in Axis Bank and you want to take a car loan, then apply in Axis Bank.
Our suggestions
We have made the car loan process a little easier. Contact us for this, and we will give you complete information. If you have any questions, you can ask by commenting.
