Excited to buy a new car? In that case, the best way to finance the purchase is to opt for a car loan. Based on how much funds you require and the duration in which you can repay the borrowed sum completely in EMIs, you can choose a suitable loan amount. After that, you can use the online car loan EMI calculator to easily check the equated monthly installments that you need to pay.
With these few simple steps, you can fund your purchase of a new car. That being said, here are some important things to check before getting a car loan in India.
The Eligible Loan Amount
The best bank offers a car loan for up to 90% of the vehicle’s ex-showroom price. You can get a loan amount of up to ₹50 lakhs based on your income and any other criteria mentioned by the bank.
Necessary Documents
A good bank asks for loan documents that can be self-attested and are easy to obtain. You can check the required documents on the bank’s website online before you apply for a car loan. Usually, you’re required to submit the following documents:
- Your KYC details
- Your bank statement
- Your proforma invoice
- Any other documents needed for a particular program
If you apply for the loan at a well-known bank, you can receive it without submitting your income proof. But in that case, be aware of any conditions that apply. After you have submitted all the needful documents, the bank will process your loan application.
Benefits
The best bank offers multiple benefits on car loans. These may include:
- Flexible loan tenure of up to 10 years
- Up to 100% on road funding
- No foreclosure charges
- Availability of both floating and fixed interest rates on loans and an online car loan interest rate calculator
- Loans offered to purchase even second-hand cars
Look for these benefits and choose a bank offering these facilities.
Application Process
You need not provide any collateral or security to apply for a car loan online. The bank would only hypothecate your vehicle throughout the tenure as a security against your loan.
The top bank keeps the application procedure easy and quick. You can simply contact the bank with a phone call. The bank’s representative will get in touch with you. After submitting the requested documents, your loan request would be granted in 1 day. Then produce the post-sanction documents and whoosh away in your new car. Within 2 days, the loan post-sanction processing and disbursal are generally done.
The Equated Monthly Installments
Now check the auto-calculated EMI amount you need to pay by entering the loan amount, tenure and interest rate in the car loan EMI calculator. You can find the calculator on the bank’s official website. Keep checking the EMIs on the calculator whenever it’s time to pay them.
Before applying, make sure to check out any applicable charges online on the car loan. A reputed bank usually levies only document charges, processing fees and the applicable stamp duty with complete transparency.
