Car Loan

What is a car loan?

In simple terms, it is the money borrowed from a bank to purchase a car. Car loans can be availed to buy both pre-owned cars or a new car. 

Why avail of a car loan?

Interest rate: A car loan can be availed at competitive interest rates. The repayment tenure depends upon the loan availed.

Hassle-free process: The car loan requires minimal documentation. Also, the loan is processed quickly if you meet the eligibility criteria. 

Higher loan margin: Banks finance the maximum value of the car loan which is up to 90-95% of the price of the car. 

What are the types of car loans?

Secured loans: In this loan, your new car acts as the collateral. If there is a default, the bank can confiscate your car and get the money back. 

Unsecured loans: Unsecured loans are availed to purchase a pre-owned vehicle. In this case, a small quantum of loans is offered at a higher interest rate. 

Eligibility criteria of car loan:

for a car loan, you must ensure that you meet the eligibility criteria.

  • You need to be between 21 to 60 years of age. 
  • Your gross monthly income should be above Rs. 10000
  • The applicant can be self-employed or salaried professional having a steady source of
  • Income

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