How To take Car Loan ? & Important Documents Required in it
Be your own car. This dream belongs to many people. You need to have a large amount of money to buy a car because the price of the car is very high. But if you don’t want to pay for the car in lump sum, you can also take a car loan. That is, you can also finance the car you are buying. Most banks and NBFC in India offer car loans. If you feel like buying a car, you can bring the car home just by paying some price for the car in downpayment. And you can pay the rest in installments. So let’s know how you can take a car loan? What is the process (Car loan process) and what are the documents required for this?
Car loan Details
The loan given to buy a car is called a car loan. Suppose you want to buy a car that is worth Rs 10 lakh. At the moment you have only Rs 3 lakh so you can take a loan on your car by paying these three lakhs as downpayment. Many banks and NBFC institutions in the country offer car loans. In this you initially have to buy a car by paying downpayment and then pay all the money in installments.
Who Eligible for Car Loan?
The most important thing to take a car loan is your source of income. Whether you will be able to pay the EMI of the car from what you earn. A car loan is given on this. You should either have a good job to take a car loan that brings money to your account every month, or your own business transaction you do in the bank. Overall, you have to tell through bank transaction that you are earning so much that you will be able to repay the car loan easily. Based on this, anyone can take a car loan.
Documents Necessary for Car Loan
The second most important thing to take a car loan is your document. You must have full documents to take any loan. The bank can reject your loan if the documents are incomplete. When it comes to the documents required to pick up a car, they include the following documents.
– Identity certificates like Aadhaar card, voter ID card etc.
– Residence certificates like voter ID card, electricity bill, telephone bill etc.
– Certificate showing your age
– Car Papers
– Three months salary slip (some banks or NBFC may also demand an older salary slip.)
– Bank statements for the last six months (some banks or NBFC may also demand older bank statements.)
– Proof of size return or income
Car Loan Down Payment
In case of a car loan, it is also important to know how much the car loan will be on. In fact, the car loan becomes 70 to 80 percent of the car’s ex-showroom price. Many institutions also offer car loans at 100 percent of the amount. But if you want to take a car, keep 30 percent of the car price ready. You may have to pay as a downpayment while taking a car. You can easily take the next amount in the loan.
No other vehicle bank accepts loans at 70 to 80 percent of the amount. Up to 100 percent of loans can be given to those. Whose credit score is very good. Means more than 800 and they have strong evidence of income. Such people can also get car loans at 100 percent of the amount in the offer issued by the bank.
Car Loan Interest Rate
When taking a loan, a person always looks at his interest rates. It should also be seen because the same factor depends on how expensive the loan is going to be. When it comes to car loan interest on a new car, it can be from 10.30 per cent to 15.25 per cent. Taking a loan on a second hand car can cost more than this. The interest rate of a car loan also depends on your credit score. Even if your credit score is more than 800 or between 700 and 800, you can still get a car loan with a lower interest rate. If you take any loan if your credit history is strong, the credit score is good then you will get the loan easily and at low interest.
Car Loan Charges
You may have to pay charges in many places while taking a car loan. These charges are yours before you take a loan
