Auto loan interest rates
|Banks||ROI per year in%|
|Bank of Punjab and Sindh||7.10|
|Central Bank of India||7.25|
|National Bank of Punjab||7.30|
|Union Bank of India||7.40|
|Bank of India||7.45|
|Bank of Maharashtra||7.50|
|Indian Overseas Bank||7.55|
Requirements to benefit from a car loan
You must meet the eligibility criteria below which may differ from bank to bank to apply for a car loan:
- An individual must have an age limit between 25 and 75 years old
- An individual must have a minimum income of Rs 20,000
- A minimum of one year of employment
- In the service of a public establishment or a private company, you must be an employee or self-employed worker.
Documents needed to apply for a car loan
To apply for a car loan, you must have the following documents on hand:
Proof of Identity: Aadhaar, passport, driving license, driving license, voter ID card, PAN card.
Proof of address: Aadhaar, valid passport, driver’s license, utility bills for the past 3 months.
Proof of income: Form 16, proof of salary for the last 3 months, the latest computer returns, bank statement for the last 6 months.
Tips to get your car loan faster
It is best to apply for a pre-approved loan if you want to receive capital to buy the new or used car that you have been targeting for some time. You can consider the following tips if you want your loan application approved faster.
- In terms of credit score, you can check your credit report to validate your status. A rating of 750 or higher can earn you a cheaper interest rate. The interest rate for a score of 650 to 750 will therefore be slightly higher. Your request will be refused if you have errors in your report or if you have a very bad score.
- You need a minimum monthly pre-tax income and a reasonable debt-to-income ratio in order to take advantage of a loan to buy the car of your dreams. While it’s usually not possible to increase your salary, by eliminating all of your credit card debt, you can increase your debt-to-income ratio.
- You should always pay your bills on time to establish a positive credit profile, and it is recommended that you pay off your debts at least 6 months before applying for the loan. If you pay the bills on time, it assures the supplier that the Equivalent Monthly Payments (EMI) will always be paid back on time. It will also help you get a loan quickly.
- There are many ways in the industry to get a loan to buy your new or used car. In an attempt to find the one that suits your desires, you can research the auto loan interest rates from many banks and auto loan companies.
- You will reduce the cost you will have to reimburse by paying a larger amount as a down payment to match the price of the vehicle you purchased. You will be in a stronger position to pay off the loan faster if you fund a lower amount, as a larger loan amount means smaller EMIs or a shorter loan term.
- The repayment potential of an applicant has a significant effect on the acceptance of a loan that he has applied for. You need to make sure that you choose a plan that you can afford when you agree to get a loan to buy the car you’ve always wanted. If you are currently paying IMEs for other loans that you have taken advantage of, you can confirm that the EMI for the car loan you have chosen will still be charged.
- You may not be an option for a car loan with low monthly EMIs, but longer term. You should always look for a package that has the lowest interest rate and the lowest possible term of the loan before finalizing. Stop being fooled into a risky payment scenario by making sure the loan terms are final.
- The main concern of banks and NBFCs when granting a loan is to be risk free. Therefore, when sanctioning a car loan, having comprehensive insurance is a prerequisite for some companies because it tends to recover the balance of the debt in the event of an event endangering the lender.