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An automobile was once a luxurious commodity, but in today’s economically developing world, a car is a necessity for various reasons; ranging from professional to recreational. Owning a car is not only about luxury & comfort but more about practicality, convenience and functionality. 

Applying for a car loan is just a few clicks away. Almost every bank today offers car loans and at attractive interest rates and other benefits. Based on one’s affordability, it is now, quite easy to take a car loan and then pay EMIs without really biting into a person’s finances.

Car Loan Interest Rates

Capture car loan

Eligibility

There are certain eligibility conditions that should be met to be able to go for a car loan and one must make sure they have a proper understanding of that. Let’s see what are these factors that will decide if you are eligible to buy a car:

Details Salaried Self-employed
Age 21 – 60 years 18 – 65 years
Annual income Rs 25,000 Minimum turnover of Rs. 40 lakhs
Credit Score 700 700
Loan Tenure Up to 7 years Up to 7 years
Loan to Value Ratio Up to 100% Up to 100%

EMI Calculator

EMI Calculator is a simple and smart tool to calculate the monthly amount payable to the lender (Bank). It’s basically a slider where you have to enter the values as per the Principal amount (P), Time duration (N), and Rate of interest (R). You can also try ClearTax Loan EMI Calculator to find out how much EMI you will need to pay every month and figure out your budget in advance.

Documents Required

The following documents are required along with your Loan application:
Agriculturists Salaried Customers Businessmen – Professionals
Application form with photograph Application form with photograph Application form with photograph
Identity and Residence proof Identity and Residence proof Identity and Residence proof
Last 6 months bank statements Last 6 months bank statements Last 6 months bank statements
Processing fee cheque Processing fee cheque Processing fee cheque
Income Documents
Copies of Title Documents of Agricultural Land depicting Landholding Latest Salary Slip Educational Qualifications Certificate and Proof of Business
Copies of Title Documents of Agricultural Land depicting crops being cultivated Form 16 Business Profile and Previous 3 years Income Tax returns (self and business)
Statement of previous 2 years of loans availed Previous 3 years Profit/Loss and Balance Sheet

Process of Applying

Car loans can be availed through different mediums. Either you directly go to the bank branch and enquire or you can apply online. The bank you choose will collect your documents and initiate the loan process which includes checking your CIBIL score, the value of the asset (vehicle), eligibility calculation etc. and then give a decision on your loan based on the evaluation results.

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If you had invested Rs 10,000
every month for last 25 years
in equity funds, you could make

₹ 3.3 Crores
at 15%* annual returns

Invested
Rs 30 Lakhs

Received
Rs 3.3 Crores

Invest Now