Buying a car is not a dream in today's world market. Nowadays the dream about car can come true by easy methods like buying through financing and loan. All the credits goes to multinational companies and various private sector banks. All these measures initiate the human dream with innovative service offerings and incentives. This facility can be available throughout the country for the purchase of both new and second-hand cars.
Notable Features of Car Finance
- Banks pay up to 90% of the cost of the new vehicle.
- In case of used vehicles, banks finance up to a maximum of 85% of the value of the car.
- Generally public sector banks offer lower rate of interest than the non-banking finance companies.
- Usually the interest is calculated on a monthly reducing balance.
- The banks offer a repayment tenure of 12 to 60 months.
- Few institutions even offer 7 years repayment period.
- A salaried person can borrow up to 3 times of the annual salary.
- A self employed individuals can borrow up to 6 times of the annual income.
- Application Form
- Proof of identity
- Proof of income of last two years
- Proof of Residence
- The income of spouse can be clubbed to increase the loan amount.
- Terms and conditions for prepayment of the amount need to be clarified before agreement
- Try to consider taking loan where there is no penalty of prepayment.
List of Companies offering Car Finance
- Ashok Leyland Finance
- Bajaj Auto Finance
- Kotak Mahindra Primus
- Sundaram Finance
Car Loans from Banks
- HDFC BANK
- AXIS BANK
- ABN AMRO
- KOTAK BANK
- BANK OF BARODA
- ALLAHABAD BANK
- ICICI BANK
Car Loan Tips
- Compare per month emi and processing fee.
- Discounts and other free bees.
- Check for whether your bank has tie up with The car Dealer of your choice.
- Any discounts on Car Insurance.
- Documents required and disbursal period.