Auto Loans enable borrowers to purchase new or used automobiles for personal or business use. Auto loans are secured loans, where the vehicle serves as collateral. These loans are available for new cars, used cars, two-wheelers, and commercial vehicles. The maximum repayment time on Auto loans is up to 7 years.
Interest rates on Loan Against Property are a bit more than Home loan Interest rates. The interest rate starts 9% The interest rate on a Loan Against Property varies from one bank to another bank and even NBFCs and HFCs It also depends on your credit score
The documentation for applying a Auto Loans depends on the nature of the employment. The standard documentation includes Individual KYC like PAN Card, Aadhaar Card Home address proof and Company KYC like GST certificate, Shop and Establishment certificate Business Registration certificate etc. and Financial documents like returns filed for last 3 years, Bank statement for personal and current account for last 1 years.
To become eligible, one must be 21 years or would have attained 60 at loan maturity with all valid and updated financials along with a credit score of 750 Plus
The maximum loan that can be disbursed under Auto Loans will be 80% to 90% of the ‘On-road Price’ which is kept as a collateral.
Is it possible to get an auto loan to buy a used car?
Auto loans are also available for pre-owned cars. This type of loan would have a different interest rate than a loan for a new car. In any case, an auto loan (used car) will only cover the price of the actual car; other costs, including registration, etc., will have to be covered by the buyer.
Do I need collateral for an auto loan?
Auto loans are loans given to people interested in purchasing automobiles. Hence, an auto loan is a secured loan, since your car is the collateral. For this reason, collateral is not required for auto loans.
An average Auto loan lasts about how long?
An auto loan can last from 1 year to 6 years. Shorter the loan tenure, the higher the EMI payable, and vice versa for longer loan tenures. Few lenders provide auto loans for a longer period, up to seven years.
How much salary is needed for an Auto loan?
Your loan application may be denied if your salary does not meet the bank's internal requirements. It may be more beneficial to apply with a co-borrower in such cases to increase your chances of getting a loan.
Can I get a loan without a guarantor or co-borrower?
You do not need a co-borrower or guarantor unless you do not meet the lender's eligibility requirements, for example, your age, income, or credit score. Other than that, you can apply on your own for an auto loan.
How can I apply for an Auto loan?
We make it easy for you to apply for an Auto loan. Easy, fast, and free! Fill out a short form you're good to go. That's how we know you'd like to speak with us. One of our representatives will contact you shortly!
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