Cheap Car Loan in India
The over crowded public transport in metro cities of India has given a big boost to the increase in the demand of private vehicles over the years. Moreover cars, bikes, scooters have become hot favorites in the automobile market.
With companies ready to finance 100% of the ‘on-road cost’ of the cars, with falling prices of cars, car loans have become incredibly attractive even for the middle class.
Car loans can be availed in two ways
- Secured Car Loans
- Unsecured Car Loans
In the secured car loan you will have to place collateral with the financial institution and in the unsecured car loans you need not place collateral. However the interest rates would differ and not everyone can get an unsecured car loan.
Today, you can also get a care loan for “Used Cars” now that shows how competitive the loan market has become. While availing car loan for used cars, you should make a check that the car is not “too old” else getting a loan will become difficult.
Contribute 20%
Under a scheme of ICIC Bank, if you can contribute 20% of the total ex-showroom price then you don’t even have to show an income proof to avail a loan. Alternatively, if you have a good credit card repayment record for a year or more then you can get instant car loans.
Documentation
To avail car loans you might require one or more of the following documentation.
- Proof of Bank Account
- Identity Proof
- Income proof of 1-2 years
- Residential Proof
However banks do not go into much details if you hold a fixed deposit account with the bank from where you want to avail the car loan, so that makes it much more easier.
Repayment of car loans in India
The repayment tenure will be between 1-5 years depending on the policy and the amount which you have taken; this may vary from banks to banks. Secondly the repayment of used car loan will differ from the New Car loans.
Buying a car was never so easy, thanks to the competition in the financial markets in India which in benefiting the consumers especially the middle class to make their dreams come true.