Car loan

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Car loans usually fall into the category of unsecured personal loans, although purchasing a car can also be done through a secured loan.

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Eligibility criteria for car loan

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• Minimum age of Applicant: 21 years.
• Maximum age of Applicant at loan maturity: 60 years for salaried individuals and 65 years for self employed (varies from bank to bank).
• For limited companies, should be in existence for at least two years.
• Minimum employment: 1 year in current employment and minimum 2 years of employment.
• Minimum Annual Income: Rs 100000 and above.

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Loan repayment option

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The interest rate & EMI depends on the tenure of the loan. Payments are usually done through post-dated cheques (PDCs). Repayment can also be done through Direct Debit Mandates. The repayment due dates depend on the date of disbursement of the loan. However, the Pre-payment of the loan is mostly associated with an additional penalty charge.

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Types of interest rates for the Car loan

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The car loan interest rates can be either a fixed or floating. In the case of a fixed rate loan, the interest rate on the loan will remain fixed through the entire tenure of the loan, whereas in case of a floating rate loan, the interest rate will vary according to the specified clauses in the deed. In general Fixed Rate option is available for Car Loans up to Rs. 5 lakhs.

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Documents Required

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Following are the required documents for the car loan :

• ID Proof
• Signature Proof
• Residence Address Proof
• Office Address Proof
• Income Proof