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.
Overview 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.
Documents Required
Application Form
Photographs
Proof of income of last two years
Proof of Residence
Proof of identity
Take Note
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.
