Vehicle Loans
Once considered a luxury only for the upper class of society, cars today have reached all levels of society thanks to banks’ easy car loans. Owning a car is only next to owning a house, and almost every family desires to have their own these days. Thanks to great competition among car manufacturers and banks, there are many options available to obtain a car loan with a person’s savings account.
Bank car loans in India interest rates are usually given from a minimum tenure of two years to a maximum of seven years.
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With the ease of availing of car loans, one can buy either a new car or even a used car based on his budget, requirement, and repayment capacity. Several banks and financial institutions offer car loans from 85 to 100% of their on road value, which is an excellent facility for car buyers.
With a wide range of cars and the glut of supply in the market, car showrooms themselves give buyers the best advice on the best buying options.
To buy a car on the loan amount, you need to submit your identity, age, address, and income proof, along with your bank statement and the quotation of the car’s cost from the dealer. You can buy a car between an age group of 18-65 years, but many cars require at least a minimum age of 23 years. The minimum net income needed is Rs. 10,000/- per month, and you may be either salaried for at least one year or self-employed for at least five years to avail of a car loan with low rate of interest, and a three-year ITR must be shown. Credit cards with a decent credit score of 700 plus are usually a plus point.
The showroom price of a car and the on-road price are different as the on-road price includes registration, insurance, octroi, road tax, and other such charges levied by the government. The on-road price is usually higher than the showroom price and varies between 15 – 25% of the car’s actual cost, based on the city or town you live in.
What is the Average Car Loan Interest Rate in India?
The Car loans in India’s average interest rates vary from 9% to 11% depending on the bank you choose, the vehicle’s make, its resale value, and your car loan eligibility.