Own a car of your choice with bank loans

Own a car of your choice with bank loans

Loans offer an opportunity for anyone who has the right to buy the car of their dreams. With the increasing demand for cars in the market, a car loan is an ideal way to purchase a vehicle of your choice without draining your personal financial resources.

While visiting the nearest car dealer, you have seen the car of your dreams. Now all you want is to buy the vehicle and drive it to your parking lot. But what about the money you need for a vehicle of your choice? If this is the question that haunts you, visit the nearest bank that offers loans for people like you. But before availing a loan for yourself, always consult the banks about the loan rates and compare them online with competing banks. Researching car loans online helps zero in on a deal that works for you and ensures you don’t pay more than you should.

General characteristics

Check out the following features that will let you understand the various aspects related to car loans.

• The loan amount covers 90 percent of the price if the car is new. But if it is a used car, then the amount provided is 80 percent.

• For salaried employees, the amount provided is 3 times the annual salary, but the rate increases for self-employed professionals and amounts to 6 times the annual income.

• Apply for a loan from a bank where you have a bank account, most banks prefer such clients.

• There is a fixed period of time and premiums are determined accordingly. But in case you want to settle it before the due date, you have to pay a penalty.

• The interest rate varies from bank to bank, so check and compare before applying to any bank.

Eligibility Criteria

Before applying for a bank loan, check whether you meet the conditions or not. Banks have a set of conditions that must be met by the applicant. Although these may vary from bank to bank in India, here are some general criteria that apply to all bank loans:

• Applicant must be 21 years of age.

• The loan applicant must not exceed 58 years of age at the maturity of the loan.

• He or she must have been employed for a minimum of one year in the current job.

• Most Indian banks do not give loan without verification of annual net income which should be INR 100,000.

When applying for a loan, the applicant must submit documents proving his eligibility. The list of mandatory documents includes proof of identity which can be passport, PAN card, voter card or driving license. You must also provide proof of income, which includes payslips and Form 16 for self-employed persons. But if you are self-employed or own a business, IT returns are required for two financial years. Also, address proof is mandatory. You can submit any government document that shows your current address such as ration card, driving license, voter ID card, passport, telephone bill and electricity bill. Finally, a bank statement for the last six months must be submitted. This must be sent even if it is the bank where you have a bank account.

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