Blog #ICICICarLoan

Many Indians desire to own a Car for several necessary chores that are required to be completed throughout the day. This is why Car Loans have become popular in India as the demand for Cars has increased significantly. In India, Car Loans are offered by Banks and financial institutions with an interest rate of 7.25% per annum. The processing fees and other charges depend upon the bank or financial institution that the applicant has applied to. The loan tenure offered usually ranges anywhere between 1 and 8 years.

The Banks and Finacial institutions demand the use of the Car as collateral for the sanctioning of the Loan because then the car would act as a security that the lending institution would be entitled to take over in case the borrower of the loan is unable to pay back the lending organization. The process of Loan application for a Car Loan is pretty simple and does not require a lot of effort from the applicant. The vehicle to be bought itself acts as the security for the loan thus the borrower need not worry about losing an asset that he/she already owns. 

 Eligibility Criteria:

The Eligibility criteria that are required to be fulfilled for the application procedure of Car Loans include the following:

• The age of the applicant should be at least 18 years and below 75 years.
  
  
• The minimum net monthly income of the applicant should be INR 20,000.
  
  
• The applicant should be self-employed or be employed with the current employer for at least the past 1 year.
  
  
• The applicant should be salaried and working for a government or private institution or self-employed.

Some banks and financial institutions might have few additional eligibility criteria as per the policies of the Bank. You can contact the Bank via online and offline mode to know further details about the eligibility criteria for the application process. If you have a good credit history and CIBIL score, the chance of the Car Loan getting sanctioned by the Bank increases significantly. This is why having a high credit score can prove beneficial for you in the application procedure.

Documents Required:The Documents required for the application procedure for Car Loans include the following:

1. Proof of Identity of the applicant
   
   
2. Proof of Age of the applicant
   
   
3. Proof of Income of the applicant
   
   
4. Proof of residence of the applicant
   
   
5. Few Passport-sized photographs of the applicant

Several banks and financial institutions may demand few additional documents and paperwork for the application process. The verification of the Documents submitted by the applicant takes around 14 to 21 days by the lending Bank. You can check the status of our application through a visit to your nearest bank branch, by calling the customer care service of the Bank, or by visiting the website of the Bank you applied to.

You can use a car loan EMI calculator to estimate the monthly repayment amount you need to pay back to the bank during the tenure of the loan. The requirements of these Loans include the rate of interest chargeable, processing fees, loan tenure, and the Loan amount.

There are many popular Loan schemes available in India. Car Loan schemes that have gain popularity in the past few years include the following:

• State Bank of India Car Loan
  
  
• Axis Bank Car Loan
  
  
• Bank of Baroda Car Loan
  
  
• Kotak Mahindra Bank Car Loan
  
  
• ICICI car loan
  
  
• Bank of India Car Loan

You should perform thorough research before applying to Banks and financial institutions for Car loans. Compare the rate of interest, loan tenure offered and the processing fees being charged. Also, confirm the down payment amount that needs to be paid by you. In many cases, the Banks also offer to pay 100% of the cost of the Car. Check and analyze the prepayment policies of several banks and also keep in mind the time required for the complete application process.

Also read this: Improve Credit Score through Credit Card 

A car loan is a loan where a buyer borrows the money from the lender and returns it in fixed monthly payments. While taking the car loan the buyer agrees to pay back the full loan amount and also the interest amount. All car loans are of specific time. Mostly, the car loan is fixed at 36,48, 60, or 72 months. The buyer can choose the tenure of the loan as per the convenience. Car loan can also include a variety of fees and taxes which are automatically added to the loan amount. After signing the car loan agreement the borrower gains the right to drive the car and also possession of the car. Technically, the lender or the bank owns the car until the borrower has finished paying off the entire loan. At first the car loans were of a short period of time from 24 months to 36 months. But In recent times, the period has increased. Now people can take car loans up to 72 months. Like the other loans, car loans have also increased its popularity in recent years. Many people are taking car loans to buy new cars.

ICICI Car Loan can be availed easily with minimal documents required. ICICI banks offer an interest rate on a car that ranges between 10.75% to 12.75%. Also, the interest rate offered on new cars is 15.50%. Key features of ICICI car loan are the bank provides longer tenure up to 7 months, minimal documentation, and low processing fees. Documents required for car loans are application forms, KYC for address proof, ID proof, age proof, proof of employment stability, and income proof.

Benefits of car loan:-

No collateral needed: For car loan collateral is not needed. This is because in car loans the car only serves as the collateral. If the loan amount is not paid by the customer the car can be seized. The tenure can be selected as per the convenience of the buyer. The tenure can be for a longer or shorter duration as per the needs of the buyer. Fast loan processing: With minimal documentation the processing of the car loan is easy and can be done in a shorter time period. Lower interest rate: As compared to other loans, car loans have the lower interest rate. Flexibility to choose the payment mode: The buyer can choose the payment mode as per the convenience. Flexibility in choosing the interest rate options. Additional collateral is not required while taking a car loan. Prepayment facility is available while taking a car loan.

Conclusion

Car loans can be very easily availed in today's time with minimal documentation. Car loans have become very common these days. As many people are turning towards banks or dealers for car loans. Nowadays, in recent trends people are also buying cars online. As shopping for a car online allows consumers to compare interest rates from a wide range of lenders. Car loans have now made it easy to own a car simply by applying for a loan which can be easily paid in monthly deposits. There are several ways one can buy a car from the borrower. A buyer can borrow a car through direct lending and also through dealership financing. You can also compare terms from different lenders or the banks and can avail the best possible deal for buying a car.

Must Read:- HOW TO GET LOWER INTEREST RATES IN A CAR LOAN?