Application For a Car Loan: Things to remember
Banks and NBFCs offer different financing schemes in the form of finance for purchasing cars. These schemes come with fixed and floating interest rates for various tenures.
The lender finance a certain percentage of the price of the car, quoted as a percentage of the ex-showroom price and the rest amount is paid as down-payment. The car is deposited with the banker till the loan is repaid.
- Loan Amount: The money lent by the banks and NBFCs depends upon the price of the car, model, employment, and income of the borrower. The customer should check the amount that the lender is ready to offer.
- Tenure and Interest Rates: The Car Loan is offered for a period of 3-15 years. The interest rates charged can be fixed and floating, and it also depends on the term of the loan.
- Documents: Proof of income such as ITR(Income Tax Returns) and salary slips and ID and Address proof.
- Processing Fee: The processing charges, stamp duty, and documentation charges are applicable, depending on the bank’s norms as per loan amount.
Points to Note:
• The interest rates offered on a new car are typically different from those for used cars.
• The loan gets disbursed within 1-2 days of submitting the required documents.
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