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
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.
