Car Loan Overview
A Car Loan is a loan for your personal use, be it your child’s wedding, a dream vacation, or a shopping extravaganza. A Car Loan does not require any security or collateral and can be availed without much fuss. Typically Car Loans range from Rs. 50,000 to Rs. 30 Lacs with a tenure typically ranging from one to five years. Getting a Car Loan is quite stress free and there are typically a number of offers in the market most of the time.
Apart from the rate of interest banks also charge some fees which are usually of two types. Once when you are applying for the loan and once when you are pre-closing the loan. The fees when charged at the time of processing called as Processing Fees vary from 2-3% of the loan amount. This could be reduced if you have the ability to bargain. the second charge is the prepayment penalty paid at the time of pre-closure. This too varies from 2 – 3 %. Similar to processing charges, you can also try to get this fees reduced.
Car Loan Interest Rate
| Car loan Banks | Interest Rates | EMI per Rs 1 lakh for 7 Years |
| Axis Bank | 8.50% - 11.25% | Rs. 1,584 - Rs. 1,725 |
| Bank Of Baroda | 8.80% - 10.55% | Rs. 1,599 - Rs. 1,689 |
| Bank of Maharashtra | 8.90% | Rs. 1,604 |
| Canara Bank | 8.70% - 9.35% | Rs. 1,594 - Rs. 1,627 |
| Central Bank of India | 8.85% - 9.95% | Rs. 1,601 - Rs. 1,658 |
| Corporation Bank | 8.75% - 9.50% | Rs. 1,596 - Rs. 1,634 |
| HDFC Bank | 8.50% - 11.25% | Rs. 1,584 - Rs. 1,725 |
| ICICI Bank | 8.82% - 12.75% | Rs. 1,600 - Rs. 1,806 |
| IDBI Bank | 9.00% - 9.10% | Rs. 1,609 - Rs. 1,614 |
| Indian Bank | 9.00% | Rs. 1,609 |
| Union Bank Of India | 8.85% - 11.85% | Rs. 1,601 - Rs. 1,757 |
| Oriental Bank of Commerce | 8.50% - 9.00% | Rs. 1,584 - Rs. 1,609 |
| Punjab National Bank | 8.90% - 9.10% | Rs. 1,604 - Rs. 1,614 |
| State Bank of India | 8.90% - 9.20% | Rs. 1,604 - Rs. 1,619 |
| Uco Bank | 8.85% | Rs. 1,601 |
| Bank of India | 8.90% | Rs. 1,604 |
| United Bank of India | 8.85% - 8.90% | Rs. 1,601 - Rs. 1,604 |
| Syndicate Bank | 8.95% | Rs. 1,606 |
| Dena Bank | 9.10% | Rs.1,614 |
Documents Required for Car Loan
| Particulars Salaried Individual | Self-Employed Individual | Partnership Firm | Private / Public Ltd Co | |
| Age Criteria | The applicant should be above 25 years old at time of application, and up to 58 years of age at time of maturity of the loan | Any proprietor, partner, professional or director above 28 years but below 65 years at the time of the loan maturity. | ||
| Limited companies should have been in existence for at least 3 years | ||||
| Income Criteria | Gross annual income of at least Rs.4lakhs | Gross annual income of at least Rs.2.5lakhs | Firm should have a minimum PAT (profit after tax) of Rs.2.5lakhs | Minimum PAT (profit after tax) of Rs. 2.50 lakhs |
| Stability The total employment stability should be more than 2 years and current employment stability of minimum 1 year | Business stability should be more than 3 years | |||
Other Papers and Documents – Income proof:
Salaried individuals :
Latest Salary Slip and 2 years Form 16/ Income tax returns.
Self-Employed individuals:
Income Tax Returns of 2 previous financial years.
Partnership Firms, Societies & Companies :
Income Tax returns of 2 previous financial years along with complete financial/audit report.
Documents supporting customer information :
Identity Proof, Signature Proof and Address Proofs as per Bank norms.