India's economy is soaring, making it a hot spot for car companies! Even the middle class can now afford cars, thanks to steady growth. And guess what? Banks are offering car loans with just 8.00% interest per year! Whether you're eyeing a used car, need some extra cash, or want to refinance, there's a loan for you. But, don't forget to check out all the details before zooming off with your new wheels!
We EazyBankLoan understand the process of procuring a loan can be stressful. That is why we take care of your car loan application process, saving you time and hassle by handling the paperwork and communication with the loan providers.
Need help? Reach out at support@eazybankloan.com
| Parameter | Details |
|---|---|
| Interest Rate | Typically ranges from 7.5% to 15% per annum (for new car loan) |
| Loan Amount | Average Up to ₹1 crore, depending on the lender and borrower’s eligibility |
| Income | Minimum monthly income requirement usually ₹20,000 |
| Age | Borrowers should be between 21 to 65 years old |
| Documents Required | Proof of identity, proof of address, proof of income, bank statements, photographs |
| Loan Tenure | Usually ranges from 1 year to 7 years |
| Processing Fee | Depends on the bank |
| Bank | Interest Rate | Max Tenure | Max Loan Amount |
|---|---|---|---|
|
Starting from 9.40% | 7 Years | Up to 100% on-road funding |
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Starting from 9.1% | 7 Years | Up to 100% on-road funding |
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Starting from 8.75% | 1-7 Years | Up to 85% of on-road price |
|
14.25% to 18% | 1 year to 8 years | -Up to 90% of current value of the car |
|
Starting from 9.3% | 1-7 Years | Up to 100% on-road funding |
|
8.70% p.a | 1-7 Years | Upto 90% of on road price |
|
8.75% – 10.35% | 1-7 Years | "85% of the on-road price with no maximum ceiling" |
|
9.25% p.a. | 1-7 Years | "Rs.1 crore or 25 times the net monthly income" |
|
Starting from 7.70% p.a | 7 years | Up to 90% of on-road price |
|
starting at 9.75% | 10 years | Up to 100% on road funding |
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| Year | Principal(A) | Interest(B) | TOTAL PAYMENT(A + B) | BALANCE |
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If you have a plan to purchase a car and want a car loan, you need to apply online by visiting the official websites of different banks. Be sure to check the interest rates, fees, and loan terms.
If you need any help to make a wise decision, feel free to reach out to this email- support@eazybankloan.com. Our financial expert will get in touch with you immediately.
| Type of Car Loan | Description |
|---|---|
| New Car Loan | Financing for purchasing a brand-new vehicle from a dealership, often with competitive interest rates. |
| Used Car Loan | Financing for purchasing a pre-owned vehicle, typically with slightly higher interest rates. |
| Secured Car Loan | Car loan secured by collateral, such as the vehicle itself. If the borrower defaults, the lender can repossess the vehicle to recover the loan amount. |
| Unsecured Car Loan | Car loan not backed by collateral. Interest rates may be higher, and approval depends more on the borrower's creditworthiness. |
| Pre-approved Car Loan | Loan offers provided by lenders before vehicle shopping, based on the borrower's credit profile. |
| Refinance Car Loan | Replacement of an existing car loan with a new loan, usually with better terms such as lower interest rates or extended loan terms. |
| Top-up Car Loan | Additional loan amount taken on an existing car loan, often used for financing vehicle accessories, repairs, or modifications. |
| Lease Buyout Loan | Financing to purchase a vehicle at the end of a lease term. Borrowers may take out a loan to buy the leased vehicle outright. |
Age: Typically between 21 to 65 years
Income: Minimum would be Rs. 20,000
Stabel job history preferred: 1 year for salried and 2 years in the same business for businessman
Credit Score: Good credit score preferred 750 or above preferred.
Debt to Income Ratio: Below 36% is good.
Down Payment: Typically range 10-20%.
Loan Amount: Should be within lender's limits.
Loan Tenure: Maximum 7 years
Check Credit Score
Check Budget
Check Interest Rates
Check Lona Terms
Check Total Cost of Ownership
Determine how much you can afford
Compare Interest Rates
Check for addtional fees
Understans the lenders eligibility requirements
Look for extra features like flexible repayments
Carefully review the loan agreement
Seek Recommendations
Negotiate if possible
Seek Pre-Approval
Principal
Interest Rates
Loan Term
EMI
Down Payment
Repayment Schedule
Fees and Charges
Insurance Requirements
Collateral
| Identity proof (any of the following) | Address proof (any of the following) | Proof of income |
|---|---|---|
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| Step | Details |
|---|---|
| Check Your Credit Score | Check your Credit Score |
| Gather Necessary Documents | ID proof, address proof, income proof, and car details. |
| Research Lenders | Compare loan options from banks, credit unions, and online lenders. |
| Visit Lender or Apply Online | Visit the lender's branch or apply online through their website. |
| Fill Out Application | Complete the loan application form with accurate information. |
| Submit Documents | Submit required documents along with the application. |
| Wait for Approval | Wait for the lender to review your application and approve the loan. |
| Review Loan Terms | Review loan terms, including interest rates and repayment schedule. |
| Sign Agreement | Sign the loan agreement if you agree to the terms. |
| Complete Purchase | Use the loan amount to purchase your chosen vehicle. |
Start by checking your credit score, as it will play a significant role in determining your eligibility and the interest rate you qualify for.
Determine how much you can afford to spend on a car, taking into account your income, expenses, and existing debt obligations.
Research different lenders, including banks, credit unions, online lenders, and dealership financing options, to compare interest rates, loan terms, and eligibility criteria.
Consider getting pre-approved for a car loan from one or more lenders. Pre-approval provides you with a loan offer based on your creditworthiness and allows you to shop for a car with confidence knowing how much you can borrow.
Once pre-approved, start shopping for a car within your budget. Consider factors such as make, model, mileage, condition, and price when selecting a vehicle.
Negotiate the purchase price of the car with the seller or dealership to ensure you're getting the best deal possible.
Submit a formal loan application to the lender of your choice. You'll need to provide personal information, employment details, income verification, and information about the car you're purchasing.
Carefully review the loan terms, including the interest rate, loan amount, loan term, monthly payment, fees, and any additional terms and conditions.
If approved, review and sign the loan agreement. Make sure you understand all the terms and conditions before signing.
Once the loan is approved, you may be required to purchase comprehensive insurance coverage for the vehicle to protect the lender's investment.
Complete the purchase by finalizing the paperwork with the seller or dealership, paying any applicable taxes and fees, and arranging for the transfer of ownership.
Start making monthly payments on the loan according to the repayment schedule outlined in the loan agreement.
| Type of Vehicle | GST Rate | Additional Cess | Total Tax Rate |
|---|---|---|---|
| Electric Vehicles (EVs) | 5% | None | 5% |
| Petrol Cars | |||
| -Small cars (< 1200cc) such as Maruti Suzuki Swift | 28% | 1% | 29% |
| - Mid-size cars (1200cc-1500cc) Hyundai creta | 28% | 15% | 43% |
| - Large cars (> 1500cc) Tata harrier | 28% | 17% | 45% |
| Diesel Cars | |||
| - Small cars (< 1500cc) | 28% | 3% | 31 |
| - Mid-size cars (1500cc-2000cc) | 28% | 15% | 43% |
| - Large cars (> 2000cc) | 28% | 20% | 48% |
| Aspect | Electric Vehicle (EV) | Petrol Car | Diesel Car |
|---|---|---|---|
| Environmental Impact | Zero exhaust pipe emissions | Emissions during combustion | Emissions during combustion |
| Fuel Cost | Lower electricity cost per km. Typically Rs. 1 to 1.5 per km | High cost per km (depends on the price in cities) | Moderate diesel cost per km (depends on the price in cities) |
| Maintenance Cost | Generally lower due to fewer moving parts | Depends on the running km | Depends on the running km |
| Initial Cost | Generally higher due to battery technology. | Moderate | Moderate |
| Second-hand Value | Dependent on battery health and technology advancements | Moderate | Moderate |
| Loan Availability | Available, but may have specific terms due to battery warranty | Widely available | Widely available |
| Loan Interest Rates | Rates may vary; could be slightly higher due to perceived risk | Starting from 7.50% | Starting from 7.50% |
| Government Incentives | Often eligible for incentives and subsidies. Incentives may fluctuate state wise | No Govt. Incentives | No Govt. Incentives |
| Range & Charging | Range varies, charging infrastructure availability may vary | Unlimited range, established infrastructure | Moderate range, established infrastructure |
| Long-term Considerations | Potential for reduced operating costs over time | Subject to fluctuations in fuel prices | Subject to fluctuations in fuel prices |
| Vehicle | Expected Launch Date |
|---|---|
| Maruti Suzuki Swift | July 2024 |
| TATA CurvV | December 2024 |
| Mahindra Thar 5 door | August 2024 |
| Hyundai Stargazer | September 2024 |
| TATA Harrier EV | September 2024 |
| Citroen Basalt | August 2024 |
Yes, many lenders offer special car loan programs with favorable terms for eco-friendly or electric vehicles to promote sustainable transportation.
Yes, most banks and NBFC offer used car loans or second-hand car loans for purchasing pre-owned vehicles.
It depends on the lender and your financial situation. Some lenders may require a guarantor or collateral for the loan, while others may not.
Interest rates for car loans vary depending on factors such as the lender, loan amount, and loan term. Average interest rate would be 8% p.a
Car loan repayment tenures typically range from 1 to 7 years, depending on the lender and loan terms. Longer tenures result in lower monthly payments but higher total interest costs.
Some lenders offer 100% financing on the on-road price of the vehicle, but it depends on factors such as your creditworthiness and the lender's policies.
Commonly required documents include ID proof, address proof, income proof, vehicle details, and bank statements.
The minimum CIBIL Score required for a car loan varies among lenders but generally 750 or above would be preferred.
Yes, you can choose to take a car loan from either a dealer or a bank, depending on your preference and the terms offered.
Loan EMIs typically start after the loan disbursement, which is usually after the delivery of the car.
Down payment requirements vary among lenders but typically range from 10% to 20% of the vehicle's purchase price.
Yes, there may be fees such as processing fees, documentation charges, and prepayment penalties associated with the car loan. It's important to review these charges before applying.
The loan term refers to the duration over which the loan is repaid, and repayment options typically include monthly EMI.
Yes, some lenders offer both fixed and variable interest rate options for car loans. Fixed rates remain constant throughout the loan term, while variable rates may fluctuate based on market conditions.
Missing a payment may result in penalties or late fees, and paying off the loan early may incur prepayment penalties. It's important to understand these consequences before taking out the loan.
Yes, refinancing an existing car loan allows you to replace it with a new loan that may offer better terms such as lower interest rates or extended loan terms.
Yes, many lenders offer pre-approval for car loans, which provides you with a loan offer based on your credit profile before you start shopping for a vehicle.
If you decide to sell the car before fully paying off the loan, you'll need to repay the remaining loan amount to the lender from the proceeds of the sale.
Yes, many lenders require borrowers to maintain comprehensive insurance coverage on the vehicle throughout the loan term to protect the lender's investment.
