Cars have become an important part of our lives and we cannot do without it. Gone are the days when cars were a symbol of luxury and style statement. They are still a style statement, but for the rich and famous and for the fleet of expensive cars they have. In today’s world there are many low budget and mid ranged cars that give an amazing mileage and offer the perfect travel utility to all the users. These cars are now very reasonable for the common man to buy. Cars are an asset and cost much when you look at a mid-range car as well. But with the help of car loan it is now possible. The car loan rates are very cheap when you compare to the cost attached to maintain the car for an entire year. This has made the users think about owning a car rather than spending on the daily wages on transportation.
Car loans are always a liability and that they should be reduced in purchase when you look at the loans outstanding in your balance sheet. But this is a dire necessity and would cost only some percentage to the user over and above the cost required to travel through other means. This can be calculated using the car loan calculator. As we all know that car loan interest rates are very cheap as compared to the other loan product and is also easily available. Many banks provide a pre-approved car loan for a few customers depending on their credit score and background.
Even if you do have the money to spend on car payments, you go for the best car loans as it gives you the freedom to spend wisely with a little extra payment and without blocking your funds on something as easy as cars. One more reason to avail a car loan is because the car loans for people with bad credit history is repaired easily. New car loans or used car loan, it does not matter as the demand is very high for both the products. However, the market for refinance car loans is not as much as it is for new ones.
|Bank/NBFC||Intereset rate||Loan amount||Processing fee||Tenure||Target age group||Servicable location||Salary bracket||Commercials offered||Credit score||Employment type||Product type|
|Lending Kart||(18 - 30)%||50,000 - 1 Cr||At 2%||18-65||Pan India||12 lakhs annual turnover and above||Slab wise, 50L - 3CR: 1-2%||660 (560-660 will could be considered on case to case basis) + NTC||Self employed||working capital loans and business loans|
|Axis Finance||(12 - 18)%||Min: 50K max 50L||2% on loan amount + GST||Upto 60 Months||21-60||Pan India||Tier 1: 25K, Tier 2: 20k, Tier 3: 15k||1.5%||650 min , actual >720 (V3), CIBIL>750||Salaried||Personal Loan|
|ICICI||(10.5- 19)%||50,000 - 25 Lacs||Upto 2.25% of loan amount plus GST||12 to 72 months||23-58||30K+||1.1% Per disbursa;||750+||Salaried||PL|
|NIRA||5,000 - 100,000 INR||350-750 depending on the loan amount||3-12 months||21-55||Pan India||12000+||1500||660+||Salaried||Short term loan|
|Muthoot Finance||1Lakh metreo , 50 k Non metro - Max 10 Lakhs||14.5 - 25%||12-60 months||23-60||Pan India||20K - 25K||1.75% Per disbursa;||750 & -1 & NTC||Salaried||Personal Loan|
|Home credit||25,000 - 200,000 INR||0% - 5%||19+||INR 10,000||1.4 % CPD||670+ credit score||Salaried and self employed|
|Bajaj Finserv||13%||upto 4.13% on loan amount + Taxes||3-36 months||23-55||Pan India||25K + Tier 2 35K + tier 1||650+||Salaried and self employed||PL/BL|
|Fulllerton||(11.99 - 36)%||0-6% Loan Amount||upto 60 Months||21-60||20K + Tier 2 25K + tier 1||750+||Salaried||PL|
Calculate your personal loan EMI amount:
Now meet your financial needs with a pro-active decision. Choose your lender & required loan amount for your loan application the better way:
Personal loan amount based on your salary:
Your monthly payout - EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
A car loan is a product which is availed when you wish to buy a new or used car. It can be applied through banks or financial institutions who charge an interest rate on the amount of the loan taken. This loan needs to be repaid in a fixed tenure which is decided by the user and the institution.
Car loan is available when you apply and provide some documents for it. This would be the general documents such as photo ID proof and address proof. But with these documents you need to give your bank statements and financial earning proof as well to see if you are eligible for the loan amount or not. These documents determine whether you can repay the loans as per the monthly installments agreed upon and until what period.
When you wish to take a car loan, the banks and financial institutions look for your eligibility and give a car loan amount that you qualify for. This would be based on the income you show and the documents that you submit.
The general car loan interest rate in India fluctuates from 8% to 15% depending on the market condition, government norms and tenure. You can avail for a car loan through different banks and institutions and get a different interest rate each time. So, find the best available interest rate feasible for you.
Applying for a car loan is as easy as applying for a Pan Card. All you need to do is find a nice vehicle for your use and look for a finance company that is ready to fund your car based on the offers and benefits going on at that time. Fill in all the details of the form and furnish your documents. Your file would be analyzed and then you would be intimated if you are eligible and for how much amount.
There are banks who disburse a loan on ex show room price and there are few who provides a card loan at ON ROAD PRICE. Further Car loan is calculated basis a budget analysis of the applicant, which involves checking their income to expenditure ratio. Institution credit department checks the credit history of the applicant via CIBIL report and information provided by the user. Various loan’s/credit card outstanding taken are multiplied by the percentage of interest rate for a year into the number of years. And all these are then divided by the tenure in months to get an equated monthly installment. Eligibility of applicant’s income to pay all the existing and new EMI is analyzed to come to a conclusion at the loan amount to be disbursed.
Car loans work on the simple principle of applying for a loan amount and then paying a fixed monthly installment to the bank which includes the interest component on a regular basis until you repay the entire principle and the interest over it. Until then the car is hypothecated under the loan providers name for financial security purposes.
Car loan EMI is calculated by adding all the loan amount along with the interest rates on a reducing balance or floating method divided by the equal monthly installments to give you the EMI you would pay.
car loans in India are easily availed and is calculated simply as well. You get about 80-90% of your car value as loan and a fixed interest percentage is applied on it. This amount is multiplied in the number of years and then the total amount is divided in the number of months the loan would be repaid in.
Cars are an asset and a credit history are checked before you avail for the loan. This would mean that you would not be eligible if the credit score is bad. You can make your credit history and score into a positive and then avail for a loan. This would be done with ease through a car loan expert and they would guide you for achieving it.
A car loan is chosen when you wish to get a car for your own use and not travel in a rented one. The car loan is a perfect option for you to do so as the interest rates are all time low as compared to other loan products and is easily available as well.
Car loan or any other type of loan is a debt that you take from a financial institution. You should repay the car loan so that you credit history is not affected and you can avail some more loans if need arises. If your credit history is bad, then you would not be offered any loans in the future which can pose a problem to you.
Car loans are a great way to boost your credit history and score. If you avail a car loan and pay it off on timely basis then your credit score would shoot up like a rocket. It is a good option to pay off your car loan early as it can affect your credit score and eligibility to avail a new loan. SO, if you are in complete debt, then it is a good way to get your score enhanced by paying it off.
Car loan interest rates are not high completely. The used car loans are high as compared to the new car loans. Apart from that car loan interest rates are as standard as any other loan products.
Car loans are rejected or denied, depending on the papers you submit. You may not eligible for the loan that you have applied for or if the papers are not as strong as it should be. There can be other reasons too, but the above are the most common ones.
Car loans are almost similar when compared with a few minor changes. These can be the interest rates which institutions and banks offer or the facilities that they provide along with the upfront bonus or discounts that they give. Looking at all such option you can select which car loan is the best for you.
Car loans are available via major banks and you can choose your preference. You may opt for your bank if they offer a good benefit and deal, else you may take a car loan from any other bank that gives you a good offer. Almost all leading private and government banks have good offers for car loans.
Top banks in the Indian markets are also the top ones for car loans. This is because their products are strong making them the top banks.
You can compare the interest rates of top car loan banks in India using the common portals. This would help you to decide which car loan is best for you and gives you cheap or reasonable paying options.
Bad credit limits you to take a car loan. But it does not stop you completely. You can avail for a car loan with bad credit through a few financial institutions that offer loans on a higher rate of interest. This is simply to safeguard your principle amount and still offer the loan.
Anyone who has a strong financial background and correct papers, can get a car loan. The simple ask is to repay on time for whatever you have availed.
Bad credit is not the end of the world. You can rebuild a bad credit score and get it into a positive value which would help you to avail a car loan. You can also get a car loan even when you have a bad credit. But these financial institutions are lesser as compared to the general ones.
If you plan for availing a car loan then you should consider these 5 factors first.
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