Car Loan online

What do you need to know about these loans?

The loan eligibility may differ from one lender to another; however, the following details remain constant:

Car loan eligibility in India depends on:

Age:

The age of the person applying for the loan should be in between 18 to 25 years.

Salary:

The person's salary should be at least Rs. 10,000 per month.

Employment stability:

This is the most important factor which decides your eligibility for the loan. Nobody will give you a loan if you don't have stable employment. You must have at least 2-3 years of experience in your profession, whether you are a salaried employee or a business owner.

Car type:

The car being old or new or the model of the car also affects your loan eligibility.

Residential stability:

Some lenders may also consider this factor. One must be living at the current residence for at least one year.

India's car loan rates may vary between 7 to 9 % depending upon the lender. For used cars, it may be slightly higher. The two wheeler loan interest rate varies from 7 to 25%.

The loan amount for a car varies from 1-200 Lakh with a processing fee of 0.25-0.50% of the loan amount, while for two-wheelers, this amount varies from 0.3 - 2 Lakh with a processing fee of 0.5-2.5% of the loan amount.

One can choose loan tenure. If the applicant chooses a longer period, then EMI's will be lower, but the interest rate increases. If one chooses a shorter period, then the EMI's may be higher, but one will be able to clear the loan amount faster with a relatively lower interest rate.

Advantages of car loan in India

There are many advantages of these loans in India, like lower interest rates. Many organizations provide low rates of interest. Due to the advent of new technology, faster processing of loan amounts is possible today. After verification, one can easily apply for this loan online and get the amount digitally in their bank accounts.

The payment methods are very flexible nowadays. One can pay through cards, UPI, net banking, etc. One can choose the tenure for loan settlement depending upon his financial stability. Some lenders also provide lower interest rates if you have a good credit history or a great credit score. This also enhances the chances of quick approvals. You don't need to wait for long to buy your dream car.

This loan does not need any collateral as the car itself acts as a security with the lender, and he has the right to sell it off to recover the loan amount. You can choose between fixed and floating loan rate types.

Checklist for a car loan

For this loan, you need to arrange all the required documents like identity proof, income proof, residential proof, etc. Identity proof may include Pan card, Aadhar card, Passport, driving license, and other government-approved ID. Aadhar card also works as your address proof so keep it updated. Your salary slip for the consecutive three month's acts as income proof. If you are self-employed, the lenders are interested in your gross profits. Some lenders are also interested in your credit history.

Collect all the information about the vehicle you want to buy as the vehicle's manufacturing company. The vehicle’s model also affects the loan amount and rate. You may also need proof of insurance. Ensure checking all the details about the loan you are finalizing. Always go through important details like loan amount, interest rate, loan tenure, and processing fee on the loan amount.

Steps to follow for faster Car loan approvals:

Following the steps given below will ensure getting faster approval for your loan:

1

Pay all your debts on time. Clear all dues so that this does not cause any problem while getting the required loan amount.

2

You should maintain a good credit score. A good credit score enhances your value as a trustworthy candidate and quickens the approval process, as every lender wants to give a loan to a person who can return it well in time with interest.

3

You should consider applying for a loan to your current bank, as you are already associated with them. If you maintain a good record with your bank, they will surely look up to approve your loan quicker.

4

Always buy your vehicle from a branded showroom or a reputed dealer, as this increases your credibility.

You can easily get the required loan amount by fulfilling some basic conditions. In this digital era, you also have the option of getting your loan approved from the comfort of your home. You just have to fill out an application form online, and the lenders will contact you shortly.

FAQs

What is a car loan?

It is a legal contract between the buyer and the lender, according to which the lender gives the buyer the money for buying a car in exchange for the loan amount + interest over a fixed period.

What is a two-wheeler loan?

A two wheeler loan is the same as a car loan, but it is for two-wheelers, like motorcycles.

How is a car loan EMI calculated?

Follow the link below, and you can easily calculate the EMI using our AI-powered tool and apply for a car loan online.

What is the tenure for a new car loan?

The maximum limit is 72 to 84 months. Choosing the shortest tenure possible according to your financial stability is advisable, as longer tenure implies higher interest rates.

What is a good credit score to avail of a new car loan?

The preferred range is from 700-900. A score of 750 and above is generally considered a good one.

Can I get 100% assistance to buy a car?

Yes, some banks or lenders provide 100% financing on the car’s on-road price. This is known as 100% auto financing.

Can I prepay the car loan amount?

Yes, you can prepay the loan amount depending on the prepayment period specified beforehand by the lender. The lender may also demand a prepayment fine. You must read about this before signing the loan agreement.

What are the car loan repayment tenures?

The period during which you have to clear your loan amount. Typically lies between 1-7 years depending upon the amount, EMI, etc. Always try to keep the loan tenure as short as possible according to your financial status. A long period implies higher interest rates.

Will credit score affect interest rates?

Yes, a higher credit score can give you low-interest rates.

What is the lowest EMI required to pay for a car loan?

It depends on the amount of the loan. It may be as low as Rs. 1,599, depending on the loan type.

How much down payment do I require to buy a car?

Generally, 10% of the car value is required for a down payment.

Is taking a car loan at Rupeezo safe?

Yes, the Rupeezo portal is breach-free from any illegal practices. We can assure you of a hassle-free and quick service with all safety measures.

What is the car loan process at Rupeezo?

The process is safe and instant at Rupeezo. You can apply for this loan online through our website. Get the necessary documents ready and fill out the application form, and you are good to go. We will contact you further.

What are the eligibility criteria to apply for a new car loan on Rupeezo?

There are many factors to be eligible for applying for a new car loan on Rupeezo, like age, income, etc., as mentioned above.

How does Rupeezo help people to offer instant car loans?

At Rupeezo, the entire process is digital. You need to fill out the application and wait for our lending partners to contact you. This saves your time and energy, and you get your loan amount quickly.