Imagine cruising around in the car of your dreams – your chosen music playing in the background and the wind in your hair. That’s the stuff dreams are made of for anyone looking to acquire the luxury and comfort that a car offers. However, buying a new car can burn a hole in your pocket if you do not have the necessary finances.
There’s a good news, however. Gone are the days when you had to invest your entire savings, sell a kidney and your first-born child to buy a new car. These days most public and private-sector banks in India offer Car Loans at attractive interest rates.
So how do you go about applying for a Car Loan? What documents are required? How much can you borrow? All these questions can be quite baffling while applying for a Car Loan. Here are all the details of the Car Loan application process you’ll need for some of the top banks in India.
Name of Bank
Car Loan Details
SBI Car Loan
SBI Car Loans are of the best means of buying your dream car. These loans are available for both salaried and self-employed professionals and also for partnership firms and agriculturists.
SBI Car Loan benefits
The SBI Car Loan is available for a flexible tenure of up to 84 months
SBI does not charge any fees for pre-closure of a Car Loan
Customers can also enjoy the benefit of an additional SBI Life Insurance cover
Customers also get to enjoy an overdraft facility on their loan
The processing fee is just a minimal amount of 0.51% of the loan amount
Customers have the flexibility to opt to pay their EMIs at any time during the month and also no advance EMI is payable
SBI Car Loan eligibility
Any salaried professional with a net annual income of Rs. 3 Lakhs can apply. The loan amount sanctioned will be 48 times more than the net monthly income. The salaried individual can have a co-applicant as well.
For self-employed professionals, the net annual income has to be Rs. 4 Lakhs. SBI generally sanctions a loan amount up to four times more than the net income
For agriculturists and other allied-sector professionals, the net annual income has to be Rs. 4 Lakhs. SBI sanctions loans up to three times more than the annual income of such applicants
Individuals in the age bracket of 21 to 65 years can apply for an SBI Car Loan
IT Return form and Form 16 of the last two years for both salaried and self-employed individuals
SBI Car Loan interest rates
SBI offers the lowest rate of interest on new Car Loans as compared to other banks. It offers a fixed rate of interest with a base rate of 9.30% per annum. SBI offers loans for men at 9.85% which is 0.55% above the base rate; and for women it is 9.80% which is 0.50% over the base rate.Note: SBI Car Loan interest rates are as of the time of writing this article
The best part of applying for an HDFC Car Loan is the comfort and simplicity of acquiring this loan. The entire process is hassle-free, extremely fast and customer-friendly which makes HDFC Car Loans popular with one and all.
Features of HDFC Car Loan
The loan amount equates up to 100% of the vehicle’s cost
Loan disbursal is very quick and can be done within 2-3 days
Repayment tenure stretches up to seven years (84 months)
Your income document details are not mandatory as per the ‘No Income Document Scheme’
Fixed interest rates offers security against market upheavals
HDFC Car Loan eligibility
For salaried employees
The age bracket is within 21 to 60 years
You have to be employed for a minimum of two years out of which one year has to be with the current employer
The annual income has to be Rs. 1.8 Lakhs minimum (including that of a co-applicant)
Must have a fixed landline number or post-paid mobile number
For self-employed individuals
The age bracket is within 21 to 65 years
You must be in the business for at least two years
The annual income has to be Rs. 60,000 (for standard cars) and Rs. 1 Lakh (for mid-sized and premium cars)
Must have a fixed landline number or post-paid mobile number
For self-employed (private limited companies)
The annual income has to be Rs. 60,000 (for standard cars) and Rs. 1.5 Lakh (for mid-sized and premium cars)
Minimal annual turnover of Rs. 4.5 Lakhs
Must have a fixed landline number at the office
For self-employed (public limited companies)
The annual income has to be Rs. 60,000 (for standard cars) and Rs. 1.5 Lakhs (for mid-sized and premium cars)
Minimal annual turnover of Rs. 4.5 Lakhs
Must have a fixed landline number at the office
HDFC Car Loan interest rates
The base interest rate of an HDFC Car Loan ranges from 10.14% to 13.75% depending on the vehicle. Apart from that, the other applicable fee is as follows:Processing Fee (non-refundable)
Up to 2.5 Lakhs- Rs.2825
Above 2.51 Lakhs to 4 Lakhs- Rs. 3850
Above 4.01 Lakhs to 5 Lakhs- Rs. 4300
Above 5.01 Lakhs to 10 Lakhs- Rs. 4650
Above 10 Lakhs- Rs. 5150
Late Payment Penalty– 2% on the applicable EMI per month.
Foreclosure Charges (from date of availing the car loan)-
Up to 6 months- No charge.
1 year from 7th EMI- 6% on outstanding principal
13 to 24 months from 1st EMI- 5% on outstanding principal
After 24 months from 1st EMI- 3% on outstanding principal
Note: HDFC Car Loan interest rate and other charges are as at the time of writing this article
Andhra Bank is one of the premier public sector banks in the country which offers Car Loans at attractive interest rates. You get to borrow an amount of up to Rs. 50 Lakhs!
Andhra Bank Car Loan benefits
Up to 85% “On Road” value of the car is financed by the bank
You can pay your EMIs in quarterly/half-yearly/yearly basis as per your budget
The repayment period is up to seven years
Minimum KYC documents are required for application process
Andhra Bank Car Loan Eligibility
Individuals with a minimum income of Rs. 1 Lakh can easily apply for the loan
Companies, firms and trusts who have Andhra Bank accounts can also apply
For further information about eligibility, please visit the nearest Andhra Bank branch
Andhra Bank Car Loan interest rates
The base interest rate of Andhra Bank Car Loan is 10.25%.
For Car Loans, up to 36 months tenure, the present rate is 10.75%
For loans beyond that tenure, the current interest rate is 11%
Other Fees
There are no charges for pre-closure or processing fees
Note: Andhra Bank Car Loan interest rate and other charges are as at the time of writing this article
Allahabad Bank Car Loan is easily available for salaried and self-employed people and also for businessmen, companies and firms. Even pensioners of State government and Allahabad Bank are eligible to apply the loan.
Allahabad Bank Car Loan benefits
The margin for new cars is 15% of the vehicle’s on-road price
For Used Car Loans, the margin is 85% of the “Agreed Purchase Price” by the approved automobile dealer
You can avail up to three times of your net annual income as a loan
The repayment period varies up to a maximum of five years
Allahabad Bank Car Loan eligibility
For salaried professionals, the minimum gross monthly income should be Rs. 25,000. The repayment should be done three months before your retirement date
For retired individuals, the monthly pension should be a minimum of Rs. 15,000. The repayment should be done before you are 70 years old
For companies or firms, the net annual profit should be sufficient to cover the loan amount. The company or firm should have been in business for two years at least
For agriculturists, they should have a minimum of five acres of irrigated land holding
Allahabad Bank Car Loan interest rates
The base interest rate of Allahabad Bank Car Loan is 9.70%.Other Fees
1.22% of the loan amount is charged as processing fees
2.28% of the outstanding balance is charged as pre-closure fees
Note: Allahabad Bank Car Loan interest rate and other charges are as at the time of writing this article
Bank of India Car Loans are popular mainly because of their flexible repayment options, low interest rates and attractive discounts during festive seasons.
Bank of India Car Loan benefits
You can avail up to Rs. 50 Lakhs for Indian make vehicles and up to Rs. 100 Lakhs for imported vehicles
NRIs can avail up to Rs. 50 Lakhs
You can get a loan of up to 24 times your gross monthly income in case you are a salaried professional.
Pensioners can get up to two times their gross annual income as a loan
For companies, the loan amount can be two times the average annual cash accrual
The repayment period is up to seven years
Bank of India Car Loan eligibility
Individuals aged between 21 and 65 years can apply
NRIs can jointly apply for the loan with a resident Indian who is a close relative
Minimum KYC documents are required for the application process
For further information about eligibility, please visit the nearest Bank of India branch
Bank of India Car Loan interest rates
The base interest rate of Bank of India Car Loan is 9.70%.
For a new Car Loan, interest is calculated as Base Rate+0.45% interest rate
For Used Car Loans, interest is calculated as Base Rate+1.25% interest rate
Other Fees
Processing fee charged waived from 11.09.2015 to 31.12.2015
Note: Bank of IndiaCar Loan interest rate and other charges are as at the time of writing this article
Bank of Baroda Car Loans are available at attractive interest rates with flexible repayment options.
Bank of Baroda Car Loan benefits
The maximum loan amount can be up to Rs. 100 Lakhs
For Car Loans up to Rs. 15 Lakhs, a margin of 15% is offered on the on-road price of the new car. For loans above Rs. 20 Lakhs, a margin of 20% is given on the on-road price of the car
Hypothecation of a new vehicle is required as a security measure. The bank will keep a copy of the RTO registration document as well
The loan will be directly disbursed to the car dealer and not to the applicant
You will also need to take a car insurance policy along with the Car Loan
The repayment period is a maximum of seven years
Bank of Baroda also follows an inspection policy before and after sanctioning the loan
Bank of Baroda Car Loan eligibility
Individuals above 21 years and below 65 years can apply for the Car Loan
The loan amount is calculated depending on the age limit, salary, and repayment capacity
Bank of Baroda Car Loan interest rates
The base interest rate of Bank of Baroda Car Loan is 9.65%.
For Car Loans amounting up to Rs. 15 Lakhs, a processing fee of 0.75% of the loan amount is applicable
For Car Loans amounting more than Rs. 15 Lakhs, a processing fee of 0.50% of the loan amount is applicable
Service taxes are applicable additionally to the processing fee charges
There are no pre-closure charges
Non-payment of EMIs will incur a 2% interest additionally on the regular rate of interest
Other miscellaneous charges like registration, stamp duty (as applicable in different Indian states) also need to be paid
Note: Bank of Baroda Car Loan interest rate and other charges are as of writing this article
Now that you know all about the Car Loan application process for various banks, how about quickly trying our online Car Loan EMI Calculator to get an idea about your monthly EMIs?
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