Cars are no more considered to be an item of luxury as people look to purchase them not to suffice the impact of a Veblen and bandwagon effect but to ensure that they can travel safely from one place to another without the hassle of boarding public vehicles which causes problems in the time Maintenance process.
Although a significant portion of these loans is rationed through direct cash or bank purchase by the consumers, Middle-income earners do not prefer to invest a huge amount of money in cash since they need to liquidate their available savings and not invest that limited amount at a single go. Thus for purchasing cars or other four-wheelers the middle-income earners tend to take the facility of car loans available through the existing loan functioning mechanism in the country.
Andhra Bank Car Loan facilities have grown to be a reliable form of lending option for the middle-income population of the country administering loans to the common people so that they can purchase the car and use it for personal consumption or use it for a commercial purpose like renting it to an application cab company like Uber and Ola.
Andhra Bank Car Loan features the opportunities of provisioning for loans on the purchase of both new and used cars where the interest rate varies from 0.70 to 0.25% depending on the duration of the used car and the purpose for which it has been used. The borrower to whom the loan is being advanced shall have a monthly income that is suitable and capable enough for paying off the monthly installments to the loan along with the interest amount.
Andhra Bank Car Loan is critically important behind the growth of the car loan provisioning sector since it can only be granted to interested borrowers if they have an account with Andhra Bank and the upper cap of the loan facility ranges from an amount of 25 lac to 50 lac.
Thus, Andhra Bank Car Loan is important for the development of the provisioning of car loan requirements of a country.