Be it for daily commutes, or taking road trips with your loved ones, owning your own car offers unparalleled convenience and independence. However, with automobile prices rising year-on-year buying a new vehicle may cause a strain on your finances. With a car loan, you can buy your dream car without depleting your savings. Car loans give you quick access to funds, making an expensive purchase possible. By choosing a loan tenure that suits your needs, you can pay the loan’s equated monthly instalments (EMI) without disturbing your monthly budget.
As lenders today offer flexible terms and completely paperless procedures, it has become easier than ever to apply for a car loan online from the comfort of your home.
Here is all you need to know about getting a car loan in India.
Setting a Budget
While deciding on your dream car, the first factor you need to consider is your budget. Naturally, you cannot assess car model options without keeping a range in mind. This initial step will help you understand the amount you need to set aside for the down payment, and the amount you need to take a loan for. While making these calculations, do not forget to consider additional costs like insurance, taxes, loan processing fees, registration, etc.
Researching Lenders
Next, conduct thorough research on the various lenders in India who provide car loans at competitive interest rates and favourable terms. Compare loan amounts, interest rates, tenures, and documentation requirements. It is also advisable to get an understanding of the history and track record of the lender in question. To do so, read customer reviews and understand the lender’s reputation based on the borrowing experiences of past customers.
Assessing Your Eligibility
Once you have shortlisted a lender, the next step is to ensure you meet the eligibility criteria. While different lenders have different criteria in place, some common eligibility factors for salaried and self-employed individuals include:
- Age
- Income
- Employment status and history
- Residence stability
Checking Documentation Requirements
While applying for a new car loan online, the lender will ask you to furnish some essential documentation with your application. Here is the list of basic documents typically required:
- Identity proof
- Address proof
- Income proof
- Bank statements
- Passport-size photographs
Applying for a Car Loan
Applying for a car loan in India has become easier than ever, thanks to the online application processes offered by lenders. All you need to do is visit your preferred bank’s website and submit a new car loan online application. Upon receiving your request, an agent will contact you and take you through the next steps involved in the car loan process.
Alternatively, you can contact the bank by phone or visit the nearest bank branch. Once you apply for the car loan, the bank will process your application. Depending on the bank’s speed of disbursal, you should receive the amount in your bank account in a few days or weeks.
Parting Thoughts
Some banks offer new car loans of up to 100% of the car value. Before you apply for a car loan online, you can easily calculate your loan EMIs using an online car loan EMI calculator, this helps you plan your monthly repayment obligations.
When choosing a lender to fulfil your dream of buying a new car, it is crucial to shop around and choose a trusted bank that offers new car loans online with attractive features, and offers an easy application process.