Why Car Loan is the best option in finance?
Car Loans have become quite popular in the past few years in India. Many people require a car to commute from one place to another. Earlier cars were used for luxury like traveling but now Cars have become a necessity. The need for Cars in India has increased significantly with the advent of urbanization in India.
The interest rate offered in India usually is 7.25% per annum onwards. Generally, the Loan tenure for Car Loans is anywhere between 1 and 8 years. The processing fees for the application procedure of Car Loans depend upon the Bank you wish to apply to. Car Loans are secured Loans and hence have an attractive rate of interest offering for their consumers.
Eligibility Criteria:
The criteria that are required to be fulfilled by the applicant for the application procedure of Car Loans include the following:
- The applicant’s age should be at least 18 years and below 75 years of age.
- The applicant should have a monthly income of at least INR 20,000.
- The applicant must either be self-employed or be employed with the current employer for at least the past 1 year.
- The applicant must be working for a government or private institution or should be self-employed for the past 1 year.
These criteria may vary as per the Banks you apply to. You can estimate your monthly EMI payments with the help of online Car Loan EMI calculators. The requirements for the use of these calculators include the Loan amount, Loan tenure, rate of interest, and processing fees chargeable by the Bank.
Documents Required:
The following Documents are required for the application procedure for Car Loans in India
- Filled application form for the Car Loan.
- Proof of Identity of the applicant.
- Proof of Age of the applicant.
- Proof of Income of the applicant.
- Proof of Residence of the applicant.
- Few Passport-sized photographs of the applicant .
Several Banks may demand few additional documents for the application for a Car Loan. A high credit score can increase your chance of getting the loan sanctioned by the bank or financial institution you applied to. You can check the status of your application via online or offline mode.
A Car Loan can be the best option available in the domain of finance as these loans are secured and the car itself acts as a security for these Loans. Unlike Personal Loans, these loans offer a pretty simple application process, repayment options, and a lower rate of interest applicable on your loan, amount. These loans can help you in financing your Dream Car that you can you use to commute to various places. The Car that is being placed as the security of your Loan is not even yours. You are not putting any of your assets for the Car Loan application which is not the case in most of the finance options available in the Finance market.
More and more people are understanding the importance of living a happy and comfortable life and thus even if they can not afford to own a car, they opt for Car Loan schemes to ease the process of transportation for them. You can research and compare all the Car deals available in the vehicle market and also the Car Loans being offered by Banks and other financial institutions in India. You can do your research via online or offline mode.
The popular Loan schemes available in India for you include the following:
- Bank of India Car Loan.
- Bank of Baroda Car Loan.
- ICICI Bank Car Loan.
- Yes Bank Car Loan.
- State Bank of India Car Loan.
- Axis Bank Car Loan.
- Canara Bank Car Loan.
You can search for more such schemes online that can help you in comparing the offering available for you. The more you research the more able you would become in cracking a better deal and in decreasing your future financial burdens.
Also read this: Wrong Usage OF Credit Card
