Advantages :
- The first obvious benefit is that you can have a car without paying for its full amount immediately. This means that your budget is not constraint to get a car.
- You'll also know exactly how long & what extra amount you'll be paying for the loan.
- Car Loan is also better than others loan as it often comes with added benefits. For example, if you buy your car from the same company that provides you with the loan, they may add in six month's free road tax or a full vehicle inspection before you drive the car home or give one year insurance for free.
Disadvantages :
If you will sum up the total amount of interest you have paid or will about to pay, it is equal to a big proportion of the vehicle’s actual purchase value.
- If you cannot fulfil monthly repayments, there is a risk that the car being repossessed by the bank.
- Your higher monthly EMI payment may cut back on saving and investing. Consequently, your long-term financial planning may suffer accordingly.
Documents Requuired for Car Loan :
|
Criteria
|
Documents
|
Salaried
|
Self Employed ( Sole Propritorship)
|
Self Employed ( Partnership Firms)
|
Self Employed ( Private Limited Companies)
|
Self Employed ( Public Limited Companies)
|
|
Photograph
|
|
√
|
√
|
√
|
√
|
√
|
|
Identity Proof ( Any One )
|
Aadhar Card
|
√
|
√
|
√
|
√
|
√
|
|
Voter Card
|
√
|
√
|
√
|
√
|
√
|
|
Passport
|
√
|
√
|
√
|
√
|
√
|
|
PAN Card
|
√
|
√
|
√
|
√
|
√
|
|
Driving Licence ( Recent)
|
√
|
√
|
√
|
√
|
√
|
|
Address Proof ( Any One)
|
Aadhar Card
|
√
|
√
|
√
|
√
|
√
|
|
Voter Card
|
√
|
√
|
√
|
√
|
√
|
|
Passport
|
√
|
√
|
√
|
√
|
√
|
|
Driving Licence ( Recent)
|
√
|
√
|
√
|
√
|
√
|
|
Ration Card
|
√
|
√
|
√
|
√
|
√
|
|
Voter Card
|
√
|
√
|
√
|
√
|
√
|
|
Electricity Bill
|
√
|
√
|
√
|
√
|
√
|
|
Telephone Bill
|
√
|
√
|
√
|
√
|
√
|
|
Life Insurance Policy
|
√
|
√
|
√
|
√
|
√
|
|
Shop & Establishment Certificate
|
x
|
x
|
√
|
√
|
√
|
|
SSI Certificate
|
x
|
X
|
√
|
√
|
√
|
|
Sales Tax Certificate
|
x
|
x
|
√
|
√
|
√
|
|
Bank Statement( Last 6 months)
|
√
|
√
|
√
|
√
|
√
|
|
Income Proof
|
Latest Salary Slip ( Last 3 months)
|
√
|
x
|
x
|
x
|
X
|
|
Form 16 ( Last 2 Years )
|
√
|
x
|
x
|
x
|
x
|
|
|
Income Tax Return
|
x
|
√
|
x
|
x
|
X
|
|
|
Audit Balance Sheet
|
x
|
x
|
√
|
√
|
√
|
|
|
P&L Accounts ( Last 2 Years)
|
x
|
X
|
√
|
√
|
√
|
|
|
Company’s IT Retrun( Last 2 Years)
|
x
|
x
|
√
|
√
|
X
|
Eligibility Criteria for Car Loan :
|
Criteria
|
Documents
|
Salaried
|
Self Employed /Professional
|
|
Age
|
|
Min. 21 Years
Max. – 70 Years
|
Min. - 21 Years
Max. – 75 Years
|
|
Residence Area
|
Rural/Semi-Urban/Rural
|
Min. One Year
|
Min. One Year
|
|
Residence
|
Duration
|
Min. One Year
|
Min. One Year
|
|
Income
|
Per month
|
Min. Rs.20,000.00 pm
|
Min. Rs.15000.00 pm
|
|
Experience
|
Work
|
Min. Two Year
|
Min. Two Year
|
|
Credit History
|
Loan Repayment History
|
√
|
√
|
|
Car Type
|
Old/New
|
√
|
√
|
|
Value of Car
|
New/Old
|
√
|
√
|
|
Car Loan Interest Rate
|
|
Car loan company
|
Interest Rates
|
Processing fee/ Documentation Charges
|
|
Allahabad Bank
|
MCLR+0.50%
|
0.50%, maximum 8696/-
|
|
Andhra Bank
|
MCLR+0.70%
|
Nil
|
|
Axis Bank Ltd
|
11.00% - 12.00%
|
Rs. 3500 to Rs. 5500 / Documents Charges – Rs.300.00
|
|
Bank of Baroda
|
8.85% - 10.60%
|
Rs.2,500.00 to Rs.10,000.00
|
|
Bank of India
|
MCLR + 0.85%
|
Rs.500.00
|
|
Bank of Maharashtra
|
MCLR + 0.75%
|
0.25% of the Loan Amount (Min.:Rs.500/-)
|
|
Canara Bank
|
8.70% - 8.95%
|
0.25% on the loan amount with a minimum of Rs.1000/- and maximum of Rs.5000/-
|
|
Central Bank of India
|
8.80%
|
0.50% of loan amount with Minimum Rs. 2000/- and Maximum uptoRs 20,000/-
|
|
Corporation Bank
|
9.40% - 9.90%
|
1% of the loan amount subject to minimum Rs.1000/-
|
|
City Union Bank
|
14.50%
|
|
|
Dena Bank
|
9.00% - 9.10%
|
Rs 500/- irrespective of loan amount.
|
|
DhanaLaxmi Bank
|
9.80% - 10.05%
|
1% of the Loan Amount
|
|
Federal Bank
|
MCLR+0.25% - MCLR+0.55%
|
Min. 1500/- Max.2500
|
|
HDFC Bank
|
11.50% - 13.75%
|
0.4% of Loan Amount or Rs.10000, whichever is lower / Rs.600.00
|
|
ICICI Bank Ltd
|
10.75% - 12.75%
|
Rs.2500/- to Rs.5000/-
|
|
IDBI Bank Ltd
|
9.10%
|
N.A
|
|
Indian Overseas Bank
|
9.05%
|
N.A
|
|
Karnatak Bank
|
9.90%
|
0.50% of Loan Amount
|
|
Oriental Bank of Commerce
|
10.20% - 10.45%
|
0.50%, min. Rs 500/- & max. Rs 7000/- plus ST.
|
|
Punjab National Bank
|
MCLR+0.60% - MCLR+1.05%
|
Rs 100/- + service tax
|
|
Punjab & Sindh Bank
|
MCLR+0.25%
|
0.25% of Loan Amount subject to Min. 1000.00/ Max.15,000.00
|
|
State Bank of India
|
9.20% - 9.25%
|
0.50% of Loan Amount +ST
|
|
Syndicate Bank
|
9.40%
|
Nil
|
|
Tamilnadu Mercantile Bank
|
11.40%
|
1%
|
|
Uco Bank
|
9.00%
|
1% of the loan amount maximum Rs.1500/-
|
|
United Bank of India
|
9.00% - 9.05%
|
0.50% of the loan amount sanctioned subject to minimum of Rs.500/- and maximum of Rs.10,000/-
|
|
Union Bank of India
|
8.90%
|
N.A
|
|
Yes Bank
|
8.80%
|
Up to 1% or Rs.10,000.00 whichever is lower.
|