Car Loan

• Car Loan Features:

  • Loan amount up to Rs. 1 Crore
  • Interest rate starting at just 7.50% p.a.
  • Repayment tenure up to 7 years
  • Lowest EMI starting at Rs. 1,707 Per Lakh

• Details:

  • Interest Rate: 7.50% - 15% p.a.
  • Tenure: Up to 7 years
  • Processing Fee: Up to 2% of the loan amount
  • Loan Amount: Up to Rs. 1 Crore
  • Turnaround period: 1-7 days
  • Minimum Income: Rs. 25,000 per month
  • Eligible Age: 21 to 60 years
  • Lowest EMI possible: Rs. 1,707 Per Lakh
  • Part Prepayment Charges: Up to 4% of the amount prepaid
  • Foreclosure Charges: Up to 4% of the outstanding loan amount

• Car Loan EMI Calculation:

  • Loan amount: Rs. 10 Lakhs
  • Tenure: 5 years
  • Rate of interest: 7.50% p.a.
  • EMI: Rs. 20,278
  • Total interest: Rs. 2,16,680
  • Total amount payable: Rs. 12,16,680

• Documents Required:

  • Identity Proof: Passport, Driving License, Aadhaar Card, Voter ID
  • Address Proof: Recent Utility Bills, Rental Agreement, or any valid form of ID proof where permanent address is at least 1 year old
  • Income Proof: Bank Statements of the last 3 months, Salary Slips, Income Tax Returns
  • Other Documents: Duly filled & signed application form with applicant’s recent passport-size photo (coloured)

• Advantages of a Car Loan:

  • No Collateral: No need to mortgage any asset for the loan.
  • No End-Use Requirement: The loan can be used for any purpose, with a declaration that it won't be used for speculative purposes.
  • Quick Processing: Available without security. Approval can be quick if eligibility criteria are met, with online approvals offered by some banks.
  • Fixed Rate of Interest: Interest rate remains fixed throughout the loan tenure, ensuring stable EMIs.
  • Repayment Flexibility: Loan tenure can range from 12 to 60 months. Longer tenures lower the EMI, and some institutions allow interest-only payments with principal repayment at the end of the year.
  • Tax Benefits: You may be eligible for Income Tax deductions up to Rs. 2 Lakhs under Section 24B of the Income Tax Act, 1961, if the loan is used for home renovation (proof required).