How to get car loans online in India

 How to get car loan online?

                                  

What is car loan?

Borrowing money from a lender to buy a car is called car loan ,whether the car is new or used it does not matter. What matters is that you fulfill the requirements and agree to pay back in the discussed time.

Getting a car loan includes few steps only. Every bank nowadays lends money to buy a car and at genuine interest rates.Most of the banks also started the online applications for the car loans.

Steps to apply for car loan

1.First step includes choosing the car company and model.

2.The next step is to meet the eligibility criteria.which is different for different banks but you can check the criteria for the loan by visiting the website of the respective bank .

3.The next step is to think of the amount that you wants to borrow and checking the EMI's that you will have to pay later . To calculate the EMI you can use the EMI calculators provided on the website of the bank.

4.After completing the above steps, you have to provide the requested documents to the bank,which can be done either by visiting the nearest branch or by visiting the website of the bank.Most banks take a day to approve your documents.

once approved your requested funds will be transferred to your account.

How Car Loan works in India

For example -You want to purchase a four-wheeler and have decided the car. But you don’t have money to buy a car. In such a case a bank or a lender will pay the car dealer in full or part on your behalf, now you have to pay EMI's to the lender , EMI include a ratio of principal amount and the interest that you have to pay to the lender. EMI is an instalment every month. This instalment is inclusive of the amount payable, the interest charged as well as the processing fee. The longer the tenure, the lower is the EMI and the shorter the tenure, the higher is the EMI.

Apart from a rate of interest and a processing fee, banks may also apply a additional charge to the rate at which you are borrowing. Make sure to check the documents and do read the terms and conditions thoroughly and also ask for any additional charges or something.

Document list

 Different banks can ask for some extra documents but the most commonly asked  documents to apply for the loan are-

 1. Income proof in the form of salary account details for the last three months or bank statement for three months or income tax returns filed for the past three years. You have to submit identity proof in the form of PAN card, voter’s ID, driving licence, passport or Aadhaar Card. You can submit the same as your age proof too. 

2.You have to submit electricity/ gas bills, voter’s ID, Aadhaar Card, Ration Card or bill of Life Insurance.

After submitting these documents your application process is complete. now you have to wait for the banks reply to your loan request , whatever will be the decision your bank will tell you by sending a mail or a text message .

Car Loan Approval Process

In the new age of online applications, car loan applications are processed within few hours. If you apply for a car loan online or offline and submit all the required documents the banks will go through your documents and credit score and then either approve your reject the application based on your eligibility.Once the loan is approved, the funds are directly transferred to the applicant’s account within seconds. You can buy the car as soon as amount reach your account.

Interest rates of different banks in 2021 on car loans

Banks keeps on Changing the interest rates as per the economy.Some of the banks are shown in the image below

                                               

Benefits of car loan

Car loan makes it easy to buy a car for those who don't have the whole amount at that time.

Banks offers plenty of time to return the loan . Banks offer return policy of Upto 7 years , you have to choose according to your convenience.

Many banks offer loans on used cars also.

The interest rates can be negotiated if you have a good credit score.

Car loans does not require collateral. But in case of non payment bank has the right to take away the your car.

COCLUSION

This blog contains all the required information about how to get a car loan but to save your shoe leather cost please make sure you contact your bank and ask for the required documents as sometimes RBI make new changes to the policies which add or reduce some documents and in the end of this blog i want you to check other blogs for more knowledge and make sure to leave a comment if you gained some useful information.