The car itself is considered to be a secured loan and acts as a collateral. But one needs to get the RC(Registration Certificate) of the car endorsed from the bank. The endorsement will be cancelled once the loan repayment has been made.
The amount limit varies from bank to bank. While some banks approve the loan amount that can be upto 80%-90% of the price of the car on road. Some banks offer 100% car loans of the ex- showroom price. Apart from this; the percentage amount of financing totally depends on the type of car, the price of the car.
You are required to submit self attested documents detailing your income, address proof, identity prod, PAN card. Some more documentation may be required; as desired by the lending organization.
The tenure for a car loan ranges from a period of 1- 5 years. In some cases; it can be upto 7 years.
One requires a loan guarantor if one is not able to meet the eligibility criteria of the lending institution in terms of the monthly income, age, CIBIL score etc.
Unlike the other kinds of loans, you are not required to get any kind of benefits or any tax savings from a car loan.
Yes, your interest rate can be negotiated on the basis of your credit history as well as your relationship with the lender.
In the fixed ROI, the rate of interest is constant over the same period of time. Therefore, in the fixed rate of interest the prices will not change. However, in the case of floating rate of interest the lender can vary the rate of interest from time to time.
The pre-payment of car loan is possbile with a a few terms & conditions.
There is a penalty fee which will be leveraged if the EMI’s are not paid on time.