Get Car Loan Easily from Bank – Buying car on loan is the easiest loan to get in India anywhere with minimum documentation even from nationalized government sector bank also. The eligibility criteria for getting the car loan is very liberal if applied at same bank where he/she holding a account.
Follow the below mentioned process and documentation for getting car loan:
- Loan are generally provided for both i.e. New Car or Old car
- Car loan is restricted to such person only who are having the Income Tax return or income of Rs Two lacs and more (Criteria may differ but maximum bank follow the same rule)
Quantum of Loan: Generally bank finance loan up to 95% of On Road price excluding accessories, the basic are:
- New Four Wheeler: 95% of on-Road price of the vehicle + `10000/- towards accessories (or)
Three time the Gross Income (May vary as per the bank) whichever is less.
- Second Hand Four Wheeler: The loan for buying second hand car may differ as per the age and insurance value. Probably the loan are guaranteed as below by maximum banks :
Up to 2 years – ` 10.00 lacs
Above 2 years up to 3 years ` 8.00 lacs
Above 3 years up to 4 years ` 6.00 lacs
Above 4 years up to 5 years ` 5.00 lacs
OR 70% of the valuation of the vehicle, whichever is less.
Cut back: This is the maximum eligibility of loan amount to be given
- Not to exceed 50 % of gross salary; 60% in case voluntary savings. 70% in case Spouse has separate income from regular employment.
- Not to exceed 50% for pensioners.
Security of Loan: The vehicle so purchased from the bank finance will be hypothecated in favour of bank with bank name entered on RC Book of borrower.
Rate of Interest: The rate of interest for banks may differ, generally Base Rate of Bank.
Document Required:
For Salaried Class: Pan Card copy/Address Proof copy/Latest Salary Slip/
For Non Salaried/Business Class: Pan Card copy/Address Proof copy/
Common: 3 years IT-Returns with statement of income Performa Invoice of the vehicle, Valuation report in case of finance to old vehicles