Blog #Bank of India Car Loan

Buying a car is a dream of many Indians. But is it easy to fulfill this dream? The answer is a big yes; with the help of car loans, your dreams could be fulfilled easily. At first, it's only a prized possession, but later on, it becomes your companion in every hurdle. It brings in a lot of memories like long drives, vacations, and celebrating many festivals. And it can be done just by taking a car loan. The bank finances more than 80% of vehicles in India. However, it is not so easy to get a car loan. One should have a good credit score so that the bank is ready to give you a loan at lower interest rates. The bank finances more than 80% of vehicles in India, and you can also get your car financed by the bank. So in this article, we will tell you the importance of car loans.Car Loans have become an effective service in the market as of now. Car loans are one of the most opted secured loans for automobiles purchase. It is not compulsory to take a car loan, but it is recommended to take a car loan as it has many benefits.

SOME BENEFITS OF AVAILING A CAR LOAN ARE AS FOLLOWED:-

1. Interest Rates:- The first question that before taking a loan arises is the interest rate? Is my income enough? So there’s no need to worry as the Car Loan Interest Rate can go as low as 7.50%. Lower interest rates mean savings which would not be possible if you had taken a personal loan or any other loan. Car Loan Interest rate is quite flexible.
   
   
2. Low Allowances:- Nowadays, many banks are eager to pay 95% of the car’s on-road price, which helps the customer not spend money on insurance and accessories. Thus, people having fewer funds can enjoy the bliss of having a car.
   
   
3. Flexible Tenure:- Some banks like the Bank Of India give a provision for longer repayment tenure. It helps the customer to be stress-free and can repay the loan conveniently. Although a longer tenure means the longer, you’ll pay the interest. So it is advised to keep the tenure short.
   
   
4. Simple Process:- Any personal loan or house loan takes many days and months to get approved. But a car loan approval takes less than a day, and sometimes, it is approved on the spot.
   
   
5. Enhanced Eligibility:- Cutthroat competition among financiers helps the buyer maximize the population’s maximum coverage. So everyone who fulfills the basic income stability can get a car loan from various banks.
   
   
6. No Collateral Required:- The mortgage car acts as collateral for the loan due to its market value. The total amount is sanctioned up to 70 to 90% value of the car, and this amount can be recovered from auctioning or selling the car when the debt obligations are not completed. Thus it is called a secured loan due to its worth. 

WHAT IS THE REPAYMENT MODE OF DEBT IN A CAR LOAN?

In Car Loan, a borrower is given various repayment modes over a period to lessen the financial burden of the colossal amount borrowed. This repayment gives the borrower a chance to conveniently repay this amount and enjoy the luxury of owning a car. As Car is a commodity which highly used by people for comfortable transportation and in times of Covid, traveling from own vehicles has been increased. As schemes of repayment like Bullet repayment scheme and Overdraft repayment scheme are quite popular amongst the creditors. Several other repayment options like EMI(Equated monthly installments), Interest Only Payment, Post Dated Cheques, Electronic Transfer, Debit Mandate are a few of the options provided by the banks. One has the full liberty to choose any of the provided repayment options as one’s payment capability and convenience. An EMI Calculator helps in estimating the loan amount over the tenure. 

Thus, the Bank of India Car Loan is one of the best options to opt for a Car loan as it imparts various benefits and lucrative schemes for potential individuals. A Car Loan is a better option in finance due to its flexible tenure, less incurred interest rates, prepayment options, no guarantor necessitated, and several other benefits. 

Must Read:- Car loan availing process offline online 

Approved is the smartest credit score. You will win this by paying all the card bills on time, or your monthly EMI is on respective dates. Just in case you have a poor credit score, you will also improve it by paying your bills on time for a very minimum month whenever the application. This may also make sure that you get a car loan very easily and with the best options. 

Car loan Details -

• A car loan is the amount of money borrowed by the buyer to buy a car.
• Avail our car loan for purchasing both new and used car.
• A bank will lend you up to 100% of the car's ex-showroom price. You can likewise get loans up to 100% of the ex-showroom price of the car.
• The residency of the car loan ranges between 5 years to 7 years.
• Avail re-negotiating car loans to get an automobile loan at the lowest interest rate.

Through these car loans, you will get your very big dream automobile, whether or not a hatchback, sedan, or most luxury, as well as pay of the car loan over the total amount of time. If you're simply availing car loan, you may be supplied with the listing of option as well as some advantages where all the banks have distinctive setup option and all advantages that makes this car loan very unique, these are the very common setup option as well as advantages you may get if you simply avail the car loan.

Instead of good shopping for an automobile from your savings, you will simply take away Lanka to shop for a very high-priced vehicle. Once you simply qualify for the car loan, you will get the vehicle effortlessly. You can simply repay the car loan over some time, and the automobile act as collateral for your car loan. This always implies that if you fail to pay your loan EMI, then the probability of your car loan getting sold by the bank is very high. Therefore this is most important not to neglect your car loan payment.

The car loan total EMI Calculator can help you decide the EMI quantity you will easily pay for your vehicle. This way, you will also manage your total finances consequently. This type of calculator was straightforward to access as well as supply very fast results while not requiring you to try and do any type of manual calculation. That is why creating the method of car loan design is very easy for you.

It is very easy to avail of car loans compared to other loans, whichever this additional depends on some banks that provide you the car loan. This means that you will be very hard and very fast quantity through the whole period of your card on compensation period. The same maximum loan quantity is often the hundred percent of your vehicle on road worth. This type of payback amount is most of the time between 5 years to 10 years.

Using the car loan EMI calculator is very useful to compute that from the total value of automobiles to induce the number of car loans you wish. For example, research about totally different banks and certain very simple Car Loan Interest Rates on the then opts for a total tenure that always suits you. The input of this type of information in the car loan calculator will show you the total EMI you need to pay.

Several organizations provide you with the choice to examine all the credit reports and no charges once a year. Through the total credit report, you will simply check your standing, and a Bank of India car loan is always there to help you in any condition of your loan; however, just you have got a very poor report, then the probability of your car loan obtaining a rejection is very high. Therefore it is very important to the owner to have an honest credit rating to avail of the best car loan options.

Also read this: Car Loan Guide 

Applying for a car loan is one of the most accessible processes. You can simply get a car loan by following some basic steps. Almost 85% of the banks and Non-Banking Financial Companies (NBFCs) in India offer car loans. Although each lender has its process designed to apply for a car loan, the basic procedure and requirements are almost the same for every bank.

There are a lot of variables that should be checked before applying for a car loan. The first and the basic one is to narrow your eligibility criteria. You can quickly check your eligibility criteria by visiting the bank or checking their online website.
The other factors that should be kept in mind are:-

Credit Score:- Check your credit score and then compare it with the bank's requirement. If your credit score is low, then you'll have to make efforts to bring it up. But if your credit score is high, you'll get many benefits, and you can even negotiate the interest rate with the bank.

Repayment:- Check your repayment structure and the tenure you've selected. You can calculate your EMI along with your budget using some online tools like a Car loan emi calculator and then choose the right option for you. However, it is recommended to keep your loan tenure as short as possible to avoid paying more interest. 

Loan Amount:- Always choose the loan amount according to your repayment capacity and income. Don't choose an amount that will drain your income or budget too much.

Interest Rate:- There are a lot of banks that offer car loans. So it's better to make your decision after comparing multiple banks along with their interest rates. And then choose the one that provides the lowest interest rate.

After you've decided these things, it's time to apply for a car loan. There are two methods that you can use to apply for a car loan. The methods are:-

Online Application:- The first option is to apply for a car loan using the bank's online website. It is so convenient that you can get your loan approved at the comfort of your home. You get the flexibility to compare and then choose the right one for you. You can also track your application process easily using their 'track' feature. Another advantage of online applications is that the whole process is speedy because you're doing it online, and you don't have to wait in line for your turn. Many banks (like Bank of india car loan or State Bank of India) have created mobile applications for these purposes.

Offline Application:- This type of method has its advantage. The first advantage is that you get to have a verbal conversation with the bank, and you get to present your case more efficiently. So you can talk with the bank manager, and then you can find a solution for your problems.

So after you've selected a method that you'll use to apply for a car loan, then you'll have to move ahead with the procedure.

Application form:- You'll have to fill the application form of the desired bank. Fill out all the necessary details and other requirements.

Documentation:- The next step is to submit all the necessary documents required by the bank. These documents will help you to get through the verification process quickly. Once you've attached all the required documents, then you can submit the form to the bank.

The documents required are:

Identity proof:- Aadhar Card, Pan Card, Passport or Driving

License Income Proof:- Form 16, Bank Statement or Payslip

Address Proof:- Electricity Bill, Telephone Bill or any other Utility

Bill Verification:- After your document submission, the bank will take 2-7 business days to verify your documents and to confirm whether or not your application should be approved. 

Disbursal:- And once the bank has approved your application, the loan amount will be transferred to the dealer's bank account within 24 hours. The bank may also provide the dealer with a cheque or a DD ( Demand Draft), but it usually depends on the bank.

Conclusion

There are a lot of banks that provide car loan facilities. So choose your decision carefully after comparing all the options available in the market. You can even consult a financial advisor for help, but make sure that you wisely decide.

Read More:- Car loan availing process offline online 
 

A person need a personal vehicle to avoid the traffic and have some savings over the fare of the ride. For this purpose, there should be a better option which is already available in the market in the form of the financing for purchasing of car or in the short term it is called a car loan. A car loan is a type of loan where the loan amount is transferred either to the bank account of the loan borrower or directly will be transferred to the bank account of the car company. For example, Bank of India car loan is having a good facilities for the customers.

Trends On Loan

Recently, Shaktikanta Das has decided to give some review to implement some reforms into the system to provide relaxation to many customers who are struggling in the repayment of the loans. People who already have a loan duration of about four years benefit from another to moratorium years. The credit system is maintained and stabilized without any loans for bad debts, which will eventually affect the bank and the financial system itself.

1) Few things are really very beneficial in case of the dealings of the car loan. The first and foremost thing is that there is no requirement of any security or collateral security with low car loan interest rate. Collateral security is the type of security that is kept with the bank in case if any default happens in future. There will be a backup from the side of the loan providers to resell it, and we collect the loan amount. In the case of the other types of loans, it is required but not in the case of the car loan because the car itself acts as a security that will be seized by the loan providing company in the event of default or surrender of the loan.

2) There is always a way when there is any will. If any loan is going on and the payment of which is being paid based on monthly instalments regularly, then on one side, it is not only the payment of borrower is paying but also building a good credit score on the other side. If a person is having a poor credit score for a terrible credit score, then this is an excellent opportunity that it a high amount of loan which is a car loan is a perfect option that only with a single loan the credit score can have a huge jump to high scores and which will be very much beneficial to claim any loan in the future. For example, if you are buying a car worth rupees 8 lacs and before that the credit score was within the range of 300 to 400 but after a suitable repayment procedure and being in the top means of the repayment please will make you too to achieve more than the score of 650 or even 800.

As we all know, maintenance and proper decision and balancing the expenses and the savings are essential nowadays to have an excellent financial profile. Having a car loan will automatically bring some of the habits of keeping some extra amount to pay the monthly EMI for the car loan. In this way, the EMI amount and some extra money for the other expenses will also be available by that particular person, which will bring off the regular habit by repeating throughout the tenure period of the loan. To compute we can say that few good things attract the customers towards the car loan.

Also Read:- Why Car acts as a Collateral in Car Loan? 

So there's no fixed answer to how much down payment you should make on a car. Before making a decision you should consider these factors -

1. The first is to check if you're buying a new car or an old one. And only make decisions if you are financially stable or if the finances are planned out.
   
   
2. The second is to check your credit score; if your credit score is low, then you should be prepared to pay as much cash as you can as a down payment. It would make it easier for the lender to give you the loan because no one wants a risky customer. But if your credit score is high, then it would be a lot easier to reduce your down payment and reduce your interest. So if your credit score is 670, your interest will range around 10% or more, but on the other hand, if your credit score is 850, you can get an interest rate ranging between 3%-6%.
   
   
3. The third is to compare lenders or banks and see who fits in your category the best. Each bank has its own business model. For example; Bank of India Car Loan has divided interest rates among people who are salaried and who are self-employed.
   
   
4. The fourth is the most important one. When you visit the showroom, you might be tempted by the fancy brand-new sports cars. But only make decisions if you are sure that you can fix your budget accordingly and if you can pay the down payment once you've taken the loan and as well as the remaining principal amount along with interest every month.
   
   
5. The fifth is the more money you pay as a down payment; the less your remaining principal amount will be. And it will also reduce the interest. So you'll have to pay less principal every month, and the interest will be lesser too. It will also reduce the loan tenure. For example:- If the loan tenure was 60 months (with full principal amount), then after making the down payment, it might get down to a 48-month term.

So what happens if you're unable to make a down payment?

If you can't make a down payment, the interest rate will probably be high. And you'll have to pay a large amount every month along with the high interest rate. And if you're unable to make those payments every month, your car will be seized, and your credit score will fall down, which will make it harder for you to borrow money or take any loan in the future.

To avoid all this, I've stated some points below on how to save money for your down payment -

Save : 

Keep at least a minimum amount of 20% of your dream car's actual price. So that when you'll apply for a Car Loan, you'll be able to pay the down payment. 

Plan your budget : 

Prepare a budget list, where you can plan all your expenses along with your personal expenses and cut down all the unnecessary expenses. 

Create a goal :

Make a goal list to at least cut down a particular amount of expense, so if the down payment is INR 500000, map out how many months it'll take to reach that goal.

Cut unnecessary expenses : 

Take a big pause on making unnecessary purchases on memberships, clothing, household items. Only buy things that are really necessary and are your needs.

Conclusion -

Plan out your money, budget, and expenses before making any decision. It is advisable to go for a down payment because it will not only make it easier to lower your principal amount, but it'll also help you to reduce the interest rate.

Always try to compare interest rates offered by various banks or NBFC before getting the best car loan since there are no standards in the market. Even minimal differences in the rate can also significantly impact the amount that you must have to repay in the future. The interest rate is also different from fixed or floating rate. All the car lenders have a tie-up with other types of lender, and hence you may also receive many kinds of quotes on the speed and different types of charges. This can always be very helpful in evaluating the lender available whenever helping you best the dealer for the best car.

All the lending institutions also follow the KYC before providing you with a car loan or other loan types. There are also particular sets of documentation that always need to be completed also verified. All these types guarantee high-speed processing of your car loan. Other things are these car loan repayment terms. Some lending executives can also influence you to opt for a very particular loan that can always appear appealing to you. The EMI period can be five years or seven years; it depends on you how long you can quickly repay the whole of the amounts.

Nowadays, several financial websites also offer EMI calculators that always help you plan monthly EMI based on rate, thus helping to decide the low speed and the for your car. Always lookout for the processing fee as many of the lenders always charge different types of payments, and hence the comparison of the lending option can also be beneficial if you simply make an informed decision. Easily, you can also have to look into the tax. There are different critical factors to look into foreclosure. Many of the buyers are not aware of this type of charge.

All the banks and lenders that offer the best car loan provide several attractive offers and the best deals. This is very or most important to be aware of every necessary factor that always impacts securing the car loan. Some of the things you also avoid apply to many different types of loan. This would affect your CIBIL score. If this impacts your CIBIL score, then it has an impact on the car loan interest rate also. This is the reason you do not need to avail many types of loan.

If any of the borrowers are taking the car loan, this is most important or essential to know the EMI amounts that they would have to incur until the completion of the car loan repayment. The EMI calculator always helps all the individuals to understand the interest rate amounts charged on the car loan amount and the tenure period of this loan. The EMI calculator always acts as the financial tools that always help every borrower decide the car loan amount or other loan types. The calculator always helps you to calculate your monthly payment. If you figure, then this would best for you lender would not charge a high rate.

Conclusion :

If you would like to apply for a car loan, then first check your age. If your age is more than 18 years old, then no problem, you can choose this loan and maximum period 60 years old. If your age is more than then, you can not apply for a car loan. That time you have the option to choose different types of loan secured or unsecured loan. Bank of India car loan is the best choice for you, and this bank always charges an interest rate of 7.35% for every person who needs a loan because they wish to purchase a car.

Read More:- What Is The Eligibility for Credit Cards