How to get a car loan Complete information about cheap car loan at low interest rates

How to get a car loan Complete information about cheap car loan at low interest rates

In today’s modern era, everyone likes to buy a car. Every person thinks that instead of traveling in public transport, he/she should drive in his own car. Generally, buying a car is like a dream for everyone. But every person wants to buy his own car. To follow social status in the country, people have become very eager to buy a car.

For this, people have bought cars in large numbers but it is not a common thing for every person to buy a car. Because we need a lot of money to buy a car. And to fulfill this dream people have to work very hard. But many banks provide car loans to buy a car, through which you can easily buy the car of your dreams. And you can pay the bank money gradually through installments. Today in this article we are going to give you complete information related to car loan, how to apply for a car loan.

What is a car loan?

Money borrowed to buy any vehicle or car in a for of loan from any bank or any private institution. Similarly, whenever we buy a car, we do not have enough money to pay for the price of that car at once. for that people take loan to buy a new car or an old car and pay in monthly installments. This is called car loan. It is very easy to take a car loan. Every bank gives car loan as per its interest rates which may vary from bank to bank.

Car loan for a new car is easily available but It is a bit difficult to take a car loan for an old car. And for an old car we have to pay higher interest rates as compared to a new car.

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Best Bank For Car Loan

There are very good and reputed banks available in India to take car loan. You can take loan from these banks very easily and quickly. These banks are known for providing good service. These bank are very old bank. they have millions of customers.

Interest rates may vary across banks and your car loan depends on your CIBIL score.

Documents required to get a car loan

  • Two passport-sized photos
  • Income proof – Latest salary slip, Form 16, Bank statements for the last 6 months
  • For self-employed individuals, income details for the last 2 years
  • Identity proof – Passport, PAN card, Voter ID card, Driving license, etc. (any one)
  • Address proof – Ration card, Driving license, Voter ID card, Passport, Telephone bill, Electricity bill,

Eligibility for taking car loan

  • Age eligibility ranges from 18 years to 75 years.
  • Applicant must be an Indian citizen.
  • Income sources accepted include salary, business earnings, income tax returns, or other relevant documents.
  • Annual income should be up to Rs 3,00,000.
  • A steady income source is required.
  • Credit history is assessed to evaluate previous loan and credit card payments. A good credit history facilitates easier approval for a car loan.

What is the interest rate on car loan? How can you get a cheap car loan?

There are two types of interest rates for taking a car loan. You can take a car loan by choosing either floating interest rate or fixed interest rate. You can choose the car loan as per your choice. Car loan interest rates often fluctuate depending on the banks. In car loan, you get to see the interest rates up and down along with the loan. For this, you can choose whichever bank you want to take a car loan from.

You can get information about car loan interest rates by visiting the official website of that bank. Talking about the same, SBI car loan is available between 8.70% to 9.0%. If you have made up your mind to take a car loan, then before taking the loan, visit two or three banks or visit their official websites and get good information about the interest rates and loans and compare them thoroughly. Take your loan from that bank where you are getting low interest rates.

For what period can you get a car loan?

The tenure of a car loan depends on the rules of individual car distributors, banks and financial institutions. Typically, the tenure of a car loan can range from 1 year to 5 years. Some banks give car loan for up to 7 years and the tenure of the car loan also depends on the loan amount. To know the tenure of car loan, you can contact your nearest bank, financial institution or car dealer.

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Can you take a loan for an old car?

Generally this question definitely comes in every person’s mind. If a loan can be taken for an old car also. then I want to tell you, “YES”, Banks have started giving loans for old cars also. There are many banks in India which have started providing loans for old cars also. You can take loan for old car from these banks like SBI Bank of Baroda, Punjab National Bank. But it is possible that the interest rates on an old car may be slightly higher than that of a new car. If you want to take a loan for an old car, you can approach banks.

What things should be kept in mind while taking a car loan

While buying a car, you should know complete price of the car and the interest rates on it.

While buying a new car, you should negotiate with the dealer about reducing the car rates because the car dealer tells you very high rates of the car .

While buying a car, you should know things like price of music system, seat cover because car dealers spend more money on these.

While buying a car, get complete information about the car insurance, what kind of insurance you are getting and for how much money you have to pay, because sometimes you are getting better insurance from other companies in comparison to the one which car dealer is offering. car dealers often provide expensive insurance because the car dealer has an agreement with the insurance company due to which the insurance company pays a huge commission to the dealer.

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While taking a car loan, check the car loan giving companies or banks thoroughly.
While taking a car loan, get good information about the interest rate, processing fee and prepayment charge.
Get complete information about car installment, for how many years you have got the car loan and how much monthly EMI you have to pay.

How much can I get a car loan?

In car loan, banking gives loan as per its own. Different banks provide different types of car loans. They provide car loans ranging from 7% to 50%. And some give car loans up to 80 to 90 percent. You get this car loan only at ex-showroom price if the price of your car is Rs 1500000. then you can get a maximum loan of up to 90% of Rs 1500000. It does not include things like accessories, registration, insurance, tax servicing, the bank does not give loan on these things.

  • ICICI bank may have to pay interest between 7.50 to 9%.
  • Bank of Baroda can take car loan at rates ranging from 7% to 9.75%.
  • HDFC bank is offering cars at an interest rate of 7.25%.

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Conclusion

Friends, today you learned in our article how to take a car loan. And what are the interest rates on car loan and for how long is the car loan available? and Which are the good banks for car loan? Friends, I hope that you have understood all this information correctly. After reading our post on how to take a loan for cars, you can easily take a car loan. If you have read our article completely, also do share it with your friends and families so that this information can reach more and more people. To read more similar articles related to finance, you can read our other articles.
Thanks guys.

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