Apply For Car Loan
Important Information
KYC and Required Documents for Car Loan: File Charge – ₹7,100
| Form | Signed Application Form with a Photograph |
| Identity Proof | Passport, Voter ID, Driving, License or PAN Card |
| Age Proof | Birth Certificate/ Voter ID Card/ School or College Leaving Certificate |
| Address Proof | Aadhar Card, Voter I’d Card, Passport, Electricity Bill, Credit Card Statements, Mobile Bill, Water Bill |
| Income Proof | Last 3 Month Salary Slip, Last 6 Month Bank Statements, Last 2 Year Form 16 |
| Additional | Car papers, Some companies do not finalize the loan without a copy of the car insurance and driving license. |
Important Information
Car Loan Overview with Take Easy Loan
What is Car loan?
A car loan is a financial tool that allows individuals to purchase vehicles with ease. Banks and non-banking finance companies offer these loans with manageable monthly installments, making car ownership more accessible. When obtaining a car loan, the vehicle serves as collateral, giving the lender the right to seize it if payments are not met. A hypothecation letter is often part of the registration process, indicating the vehicle’s mortgage with the lending institution. Upon full repayment, this mortgage can be removed, transferring full ownership to the borrower.
Car Loan Details: New vs. Used Cars
Lending companies offer loans on both new and used cars, with varying interest rates. For new cars, interest rates generally range from 9.25% to 13.75%, while for used cars, they typically vary between 12.50% to 17.50%. Loan amounts depend on factors like age and income, with most lenders providing loans up to four to six times the annual income. Financing usually covers 80-90% of the car’s cost, with some institutions offering up to 100%. It’s essential to differentiate between the ex-showroom price (paid to the dealer) and the on-road price (including registration, insurance, etc.) when considering loan options for a second-hand vehicle.
Key Features of Car Loans
Flexible Financing: Car loans cater to both new and used vehicle purchases.
High Financing Ratio: Typically, loans cover 85%-90% of the car’s on-road value; some banks offer up to 100% financing under specific conditions.
Loan Tenure: Loan terms range from one to seven years, providing flexibility in repayment.
Income Multiplier: Loan amount can be up to three times the applicant’s annual income, facilitating affordability.
Instant Approval: Certain lenders offer instant auto financing, expediting the buying process.
Dealer Affiliation Benefits: Choosing a vehicle from a bank-affiliated dealer or manufacturer often unlocks additional discounts and offers.
Monthly Installments (EMI): Repayment typically follows a monthly installment structure, ensuring manageable payments.
Car Loan Application Process
Form Submission: Complete the application form provided by the bank, including personal details and required documents.
Loan Approval: The bank evaluates the application and, if satisfied with the provided information, approves the loan within a short period, often two days.
Document Verification: All submitted documents, including those related to car insurance, undergo thorough verification by the bank.
Loan Disbursement: Upon successful verification, the loan amount is disbursed to the applicant within the stipulated timeframe. Typically, banks provide a certain percentage of the vehicle’s purchase price as the loan amount.
Eligibility Criteria For Car Loan
To qualify for a car loan, specific eligibility criteria must be fulfilled. It’s essential to comprehend these requirements thoroughly. Let’s explore the factors that determine your eligibility to purchase a car:
| Details | Salaried | Self-employed |
| Age | 21 – 60 years | 18 – 65 years |
| Annual income | ₹ 2.5 Lakh | Min. turnover of ₹ 40 lakhs |
| Credit Score | 700 | 700 |
| Loan Tenure | Up to 7 Year | Up to 7 Year |
| Loan to Value Ratio | Up to 100% | Up to 100% |