Sunday, 24.04.16 (118 views)

Car loan

Take a car loan not to buy just a car but a lifestyle


If you are planning to buy a car how do you plan to make it a reality?  Are you planning to take a dealership loan or try some other way out? Have you ever thought of a car loan through a bank to get your dream car glazing in front of you? Surely all happy moments arrive in your life with your family having a joy ride in your new car.

Car loan interest rates in India are not the same in every bank. It differs from bank to bank. The rates of the car loans are determined by the bank concerned and it is updated from time to time. The interest on your car loan mainly depends on three factors like the amount of loan, the tenure in which the loan is to be paid off and also on your salary.

You can be a salaried employee, or a professional, or self-employed but you can apply for a car loan provided you meet the conditions of the bank and have all the documents which they want to have a look.

Make your experience of buying a car more enjoyable and memorable by taking the right step to get it through a loan. There is obvious good and bad side to everything but in this case the advantages are endless. And in no way you should think of an amazing car without a car loan. Just go through this post and understand better how getting a car is so easy when you have a car loan.

At a Glance

  • Benefits of car loan
  • Documents needed for a car loan
  • Features of car loan
  • Car loan eligibility criteria
  • List of major car loan providers in India
  • Steps to get a car loan

Why car loan?

There are host of benefits but let me list some of the important ones so that you get an idea of why to opt for a car loan. You can go to your local bank branch and check out the formalities of a car loan or auto loan. A face-to face discussion is also possible at any time and can sort  any queries. If in any case you need to pay your bill at once or on the due date, you can do it by going to the bank.  When you take a car loan from a bank there is a good possibility that you will have an online account and can login and have an idea about the amount paid, the outstanding balance on the loan amount and any other related information. Getting a dealership loan may not ensure such a facility always. There is also a chance when opting for a bank you get a lower rate of interest and so you have to pay less over the years for your car. Another benefit is that you are familiar with the bank as you have been dealing with it before also and understand all the policies of the bank in relation with the loan offered by the bank. There is also a scheme of loan protection insurance available which you can avail and automatic repayments from your salary account.

Documents needed for a car loan

The following are the documents required for salaried persons.In case you are a self-employed person you have to have the following documents-

Salaried persons


Application form with photograph Application for with photograph affixed
Address proof Residential proof
Latest salary slip Income tax returns
Income tax returns Income tax returns
Last 6 months bank statement Last 6 months bank statement.
ID proof ID proof
  Last 2 years income tax returns

Features of car loan

The following features are common irrespective of the bank you choose to take a car loan. Have a look at some of them

  • Contract terms are very much flexible
  • You have a choice of fixed or variable interest rates
  • Low interest rates and EMI
  • Long duration repayment which can be up to 10 years
  • Interested to be calculated on Daily Reducing Balance
  • No Pre-payment penalty
  • Overdraft facility
  • A tax deduction may be applicable in case the vehicle is to be used for business purpose

Car loan eligibility criteria

There are host of banks which offers car loan in India at an attractive interest rates to different categories of individual like salaries or self employed people. Some of the common criteria which every bank follows are-

  • You should be a minimum of 21 years of age
  • Maximum age can go up to 70 years though in some cases it may be 65
  • Net annual income of salaried persons should range from 2 to 3 lakhs.
  • Minimum of one year continuous employment in case of salaried persons
  • Minimum of 3 years in the same line of business
  • Income eligibility as per the latest salary slip and Form 16 for salaried individuals
  • For self-employed individuals it depends on the latest ITR
  • Those who are engaged in agriculture and allied activities the net income should be around 4 lakhs

List of major car loan providers in India

There are so many business houses providing car loans Indian and has made owning a car really very easy. It is just like welcoming a new member in your family and changing your life style. So who are the major car loan providers that can make your dream come true of owning a dream car. Some of the major providers

SBI Car loan HDFC Car loan
Bank of Baroda Car Loan Axis Bank Car loan
Dena Bank Car loan UCO Bank Car Loan
PNB Car Loan Canara Bank Car Loan
Kotak Mahindra Car Loan Bank of India Car Loan
IDBI  Car Loan Punjab National Bank
Vijay Bank  

Steps to get a car loan

You can follow the following steps to get a car loan. The first step is to

  • Check your credit score which is very vital. Those who are taking loan for the first time may not know about its importance. The credit history of the individual should have some positive look like he or she was not a defaulter of any loan previously taken. A high credit score will automatically have a bearing on your interest to be paid. The rate of interest will definitely be lower in such cases.
  • Study the amount you can afford to pay on your car loan every month without putting a strain on your budget. Remember the longer the term of the loan, the lower the monthly payment you are going to pay. You should also take into account the insurance and maintenance costs which are not included in your monthly installment payments.
  • You can also shop for a car loan online and whichever offers the best deal you can choose to get financing through. In case you qualify for a loan you will get a pre-approval. You can spend less than the amount which has been pre-approved but remember you cannot spend more. You can still get pre-approved for a car loan even though you don’t have a good credit but only thing is that you have to pay a higher rate of interest.
  • The next step is to choose your car among the various types of makes and brands available. In some cases the dealer may engage you take a longer loan that will reduce the monthly payment but you have to be careful that the cost goes up in the long run.
  • Next when you have chosen your car and negotiated the price, complete all the formalities of the paper work
  • After the sale is finalized, it is now time to pay your monthly loan payments according to the terms and conditions agreed in the contract.

Bottom line

It is high time that you buy a new car and welcome it as another member of your family. There are many who dream of buying a car but don’t have enough resources at their disposal to buy a car instantly with hard cash. So for all those who want to make their dream a reality of owning a car should opt for a car loan and drive home a dream car with up to 100% loan.

The car loan does not only provide you the opportunity to buy a car but with it introduces a lifestyle which is full of adventure and excitement when you have your own car. So why delay, go to the nearest bank and understand the terms and conditions of a car loan.

Your To - Do List


Choose a bank among the banks listed providing a car loan and compare the interest rates of each of them.


Check the eligibility criterion of the bank in case of the loan. There are different set of conditions for salaried and self-employed individuals. Also see the minimum age requirements.


Get all the documents required to be submitted along with the applications like bank statements, salary slip, address proof, and identify card and a passport photograph of yours. 


Choose the tenure of loan payment. The longer the term of the loan the less you will have to pay as monthly installment.


Finalize all the paper work and submit it to the bank to get possession of your new car with the loan sanctioned.

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We have good relationship with all the major car loan providers in India and we understand how they work or on what terms and conditions they work. So we can tell you or guide you in selecting the best car loan provider. Since we have an excellent working relationship with all the car loan providers we will negotiate the best deal on your part which you may not get if you approach individually. Time is precious and we understand it better than anyone else. We will save your valuable time and do all the much needed work to get a car loan and keep you free to devote time in which you need most, that is your work.


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