Car Finance

Research say that 75% of the total vehicles purchased in the last decade were financed/ purchased through auto loans.

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: