Research say that 75% of the total vehicles purchased in the last decade were financed/ purchased through auto loans.
Financing a dream car has become very simple and easy method. Thanks to multi-national companies (MNCs) and other private sector banks. All banks and financial institutions are aggressively marketing their products with innovative service offerings and incentives. A wide range of flexible and customized financing options for the purchase of both new and second hand cars are availabe through out the country.
Features of Car Finance
- Banks pay upto 90% of the cost of the new vehicle.
- In case of used vehicles, banks finance up to a maximum of 85% of the value of the car.
- Generally public sector banks offer lower rate of interest than the non-banking finance companies.
- Usually the interest is calculated on a monthly reducing balance.
- The banks offer a repayment tenure of 12 to 60 months.
- Few institutions even offer 7 years repayment period.
- A salaried person can borrow up to 3 times of the annual salary.
- A self employed individuals can borrow up to 6 times of the annual income.
- Application Form
- Proof of income of last two years
- Proof of Residence
- Proof of identity
List of Companies offering Car Finance
- The income of spouse can be clubbed to increase the loan amount.
- Terms and conditions for prepayment of the amount need to be clarified before agreement
- Try to consider taking loan where there is no penalty of prepayment.