What is a car loan, its types (how to get a car loan)

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At present, anyone who has their own house also wants to have their own car, but the price of cars in India is so high that a person with a normal income or from an average family. difficult task for a person to collect all the money to get a car.

Nowadays, owning a car is not just a hobby, but it has become a necessity. Having a car saves time, you don’t have to wait for transport to get to the office or go out with the family.

The auto loan fulfills that wish of yours. you someone Bank Or you can buy a car by taking out a car loan from NBFC. But before taking an auto loan, you should get complete information about the auto loan, which you will find out in this article.

What is a car loan, its types (how to get a car loan)

So let’s get started without taking much of your time, first know this article. Vehicle Ready What East In Hindi.

What is a car loan

car Ready It is a secured loan provided by banks and financial institutions through which a person can purchase a new or used car. Although getting a loan to buy a used car is not easy, but if you take a loan to buy a new car, you can get the loan quickly.

Car loans are secured by the purchased car, if you are unable to repay the loan amount for any reason, the lender can seize your car and repay the loan. He does not own the car until the borrower makes the final payment.

Almost all banks and some NBFCs in India offer car loans. You can borrow up to 80-90% of the value of the car to be purchased.

Types of auto loans

Banks and NBFCs mainly offer 3 types of auto loans –

  • New car loan
  • Used car loan
  • Loan against car

Now let us know in detail about these three types of car loans.

#1 – New car loan

As the name suggests, this type of car loan is granted when a person takes out a loan to buy a car directly from the showroom. Banks offer new car loans with terms of 1 to 7 years, with interest rates ranging from 9 to 14% per annum.

#2 – Used car loan

When a person takes out a loan from a bank or financial institution to buy a used car, then it is called a used car loan. Interest rates are higher in used car loan than in new car loan. Banks and NBFCs offer used car loans for up to 80-85% of the value of the car at an interest rate of 12-18% per annum. The used car loan is available for a period of 1 to 5 years.

The used car loan can be used to buy used and used cars. With this loan, you can only buy cars that are less than 5 years old and no more than 10 years old when the loan matures.

#3 – Loan against car

When a person is in urgent need of money or wants to raise funds to buy a new car, he can take a loan from banks and NBFCs by pledging his old car as collateral, this type of loan is called loan against car.

Most banks in India offer loans against car for 1-3 years with an interest rate of 14-15% per annum 100% of the value of the car. People with bad credit can get a loan by mortgaging their car.

Car Loan Eligibility

Here is the eligibility and basic requirements for the car loan –

  • The citizenship of the applicant must be Indian.
  • The age of the applicant must be between 21 and 65 years old.
  • The minimum annual income of the applicant must be Rs 2 lakh. (both for employees and for the self-employed)
  • The candidate must have at least 2 years of professional experience in the same profession.
  • Must have a credit score of 750 or higher.
  • Also get information on other auto loan fees.

Apart from these, there may be other conditions of banks and NBFCs that the applicant must meet.

Documents required for car loan

The following documents are required by the applicant to take out a car loan.

  • car loan application form
  • Proof of income (salary slip, form 16 for employees and balance sheet for the last 2 years for self-employed)
  • Proof of age (PAN card, driver’s license, 10th mark sheet, birth certificate)
  • Bank statement for the last 3 months
  • KYC Documents (Aadhaar Card, panoramic mapPassport)
  • Current proof of address (electricity, water, gas, telephone bill, etc.)
  • Bank account
  • passport size photo

How much do you get on a car loan

Car loan One of the questions in the minds of many people is what is the car loan available. Be aware that all banks and NBFC grant car loans ranging from 80% to 90% of the total cost of the car. For example, if you want to take a loan for a car of Rs 10 lakh, you get a car loan of Rs 8-9 lakh.

Car Loan Interest Rates

By taking out a new car, banks or NBFCs offer you loans at interest rates of 9-14%, although some banks provide new car loans at even lower interest rates.

Banks and NBFCs give loans at interest rates of 12-18% for taking the same used car. However, depending on the age of the car, interest rates may be higher. You should check the interest rates before taking out a loan.

How long is a car loan available

Banks and NBFCs give a repayment term of 1 to 7 years on new car loans, but used car loans are given for a term of 1 to 5 years only. The shorter the term for which the loans are granted, the higher the EMI.

What to keep in mind before taking out a car loan

If you have decided to take out a car loan, you should keep the following things in mind.

  • First, compare the interest rates of all the banks and apply for a car loan from the banks that offer the car loan at the most reasonable rate.
  • Check your eligibility before applying for a car loan.
  • Understand the terms of auto loan repayment.
  • You should also assess your budget and financial situation before purchasing a car loan.
  • To take out a used car loan, first get complete information about the car from the dealership.

How to take out a car loan (Kaise Milega car loan)

You can apply for a car loan online and offline, here we have told you about the process.

How to apply for a car loan offline

  • First, take your necessary documents and go to the nearest branch or office of the concerned bank or NBFC, and meet with the official to get complete information about the car loan.
  • After that, take the car loan application form and fill in all the information in the form correctly.
  • You must now attach and submit your required documents with the form.
  • Banks will inspect your eligibility for the loan.
  • And if you are found eligible for a car loan, the loan amount is transferred to your bank account within 48-72 hours.

How to apply for a car loan online

  • To take out a car loan online, first go to the online portal of the bank or NBFC concerned and create your account there.
  • After that, select Auto loan from the Loan section.
  • Fill in the basic information and upload the KYC documents to know your eligibility.
  • Within minutes, you will be told if you qualify for the loan or not, if you qualify for a car loan, then upload all the necessary documents for the loan.
  • After that, the loan amount is transferred to your bank account within 24-48 hours.

Benefits of auto credit

Here are some of the benefits of a car loan –

  • You can fulfill your hobby and needs by buying a car.
  • Auto loan interest rates are low.
  • You can get a car loan ranging from 80-90% of the total cost of the car.
  • Banks and NBFCs can easily provide you with a car loan if you meet the basic car loan requirements.
  • Car loans are granted for a longer term.

Disadvantages of auto credit

Here are the disadvantages of car loan –

  • You don’t own the car until you pay off the loan in full.
  • If you are unable to repay the loan, the lender may confiscate your car.
  • Taking a loan to buy a used car is a bit difficult and the interest rates are also high.

FAQ: Car loan in Hindi

What happens if I can’t repay the car loan?

If you do not repay the car loan, the bank will send you a notice first and if you do nothing even after that, the bank will confiscate your car.

Is there a tax advantage on the car?

No, there is no tax advantage available on the car loan.

Can I sell my car before repaying the car loan?

No, you can’t sell your car until you’ve paid off the auto loan, because you don’t own the car until the loan is finally paid off.

Where can I get a car loan?

Nowadays, almost all banks and financial institutions offer car loans. The major banks that offer car loans at low interest rates are SBI, PNB, Axis, ICICI, HDFC, and many NBFCs also offer car loans at reasonable interest rates.

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Conclusion: Complete Car Loan Information in Hindi

The car loan is easy to apply for compared to other loans and does not require a separate home mortgage like other secured loans. Auto loans are secured by the car you buy. If you also want to realize your dream of having a car, then a car loan is very advantageous for you.

That’s all in this article, we sincerely hope that you have all the information about your work in this article. If you like this auto loan information then also share it with your friends on social media and keep visiting our blog to read such informative articles.

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