If you are looking to buy a used car on loan, you will be well advised to review all the latest loan offers from banks and choose the one that best suits your needs. Look for things like the interest rate provided, processing fees, prepayment. charges, total amount, duration of the loan, etc. Remember that some lenders only give such loans on used cars less than three years old and sometimes the maximum term allowed is 5 years, while some lenders give such loans for up to at 7 years old. Due to COVID-19 lockdowns, the nation was confined to its homes for months in 2020, but mental health has now tried to recover after social pressures eased. But, because of the lockdowns, if your car buying attempts were postponed last year, now you can move on and achieve your goal.
The country, however, has yet to stabilize after the losses from the pandemic, and many are still unsure of their financial outlook. In such a scenario, a good approach to improve our finances against potential risks can be to save as much money as possible by minimizing expenses. Currently, this is perhaps one of the best cost-effective approaches to acquiring a car, especially if you can also lend it to most lending institutions in the country. So if you’re looking for a car loan, below are the cheapest interest rates currently offered by the top 20 banks in the country.
Banks that offer the cheapest interest rates on car loans
|Sr No.||Banks||ROI in % per year|
|1||Canara Bank||7:30 a.m.|
|2||Bank of India||7.45|
|3||National Bank of Punjab||8:30 am|
|4||Overseas Indian Bank||8.55|
|seven||National Bank of India||9:20 a.m.|
|8||Bank of Punjab and Sindh||9.85|
|9||Bank of Maharashtra||10.05|
|ten||Bank of Karnataka||10.38|
|11||Union Bank||10:40 a.m.|
|13||Dhanlaxmi Bank||11:60 a.m.|
|14||Bank Jammu and Kashmir Ltd.||11.95|
|15||ICICI Bank||12:00 p.m.|
|16||Karur Vysia Bank||12:00 p.m.|
|17||Bank of South India||1:30 p.m.|
|20||Axis Bank||2:55 p.m.|
Documents required to apply for a car loan
For a car loan application, several documents defining the specificities required such as your identity, your proof of income and residence are necessary. Records relating to new or used cars, however, are the most relevant of all. The set of relevant auto loan documents qualifies for the loan and one cannot do this by providing the necessary documents. Although paperwork requirements vary from lender to lender, a list of documents typically required when applying for an auto loan is as follows:
- Application form duly signed and completed, accessible on the online platform or manually in bank branches.
- 2 to 4 recent passport photos
- Identity Proof: Passport, Pan Card, Driving License, Voter ID Card, Aadhaar Card
- Proof of address: bank statement, rental agreement, voter ID card, ration card, passport, driver’s license, utility bills, proof of property tax.
- Proof of Age: Voter ID Card, Birth Certificate, Passport, Aadhaar Card, Pension Payment Order
proof of income
- Proof of salary for the last 3 months
- Form 16
- Bank statement for the last 6 months
- Last electronic return receipt
- Income statement
- Balance sheet
- PAN card
- Vehicle information documents that may contain retailer sales records
- In order to confirm that, with respect to the purchased car, all relevant laws and guidelines are complied with, the buyer must also submit copies of the vehicle’s motor insurance and driver’s license.
Eligibility criteria for applying for a car loan
A car loan in India can be applied for by almost anyone who meets the standard car loan eligibility criteria. The specific conditions for taking out any loan are determined by the age, employment status and other personal considerations of the auto loan user, as well as their ability to repay. For a person to be eligible for approval for a car loan, the standard criteria, regardless of financial institution or loan amount, include:
- Must be employed or self-employed
- He or she must be an Indian Resident or NRI
- He or she must have a minimum and maximum age limit of 21 to 65 (may vary from bank to bank).
- He or she must meet the minimum salary requirements of the bank lender
For data collection, interest rates on used car loans have been listed for all mentioned public and private banks (BSE). There is no consideration for banks whose data is not accessible on their databases. Details obtained from respective bank databases. On the basis of the lowest interest rate, the banks are ranked in ascending order. The table displays the lowest interest rate granted by banks on loans of up to Rs 5 lakh and for a period of up to 5 years. The interest rates mentioned in the table are indicative and may differ depending on the general conditions of the bank.
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Article first published: Thursday, January 21, 2021, 3:36 p.m. [IST]