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.
List of Companies offering Car Finance
