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Vehicle loan – procedure, rate, benefits; Full details in 2024

A car loan is a type of finance that enables you to set aside money to buy a car (two or four wheeler). The buyer’s payment is made directly to the dealer by the lender, and the loan amount can be paid back over a predetermined period of time in equal monthly installments (EMIs). The car itself serves as security for this kind of secured loan.

Types of Vehicle Loan

Vehicle Loan: As the name implies, a vehicle loan can be used to buy a brand-new vehicle of your choice. Up to 80–90% (varying) of the vehicle’s on-road price may be financed; the remaining balance must be made up in cash. Throughout the loan term, the loan amount must be returned in equal monthly installments. A car loan’s typical repayment period is seven years. You can, however, select a duration that best suits your needs.

Two-Wheeler Loan: A two-wheeler loan helps you arrange the required funds for any type of two-wheeler vehicle (including geared motorcycles and non-geared scooters). Also commonly known as a bike loan, this financing option allows you to avail a loan for up to 100% (conditions applicable) of the on-road price of the vehicle. Similar to a car loan, you can apply online to avail a two-wheeler loan as well.

Used Car Loan: Also referred to as a second-hand car loan, this type of auto financing enables you to purchase a pre-owned car without having to pay the entire amount up front. Up to 75% (again, variable) of the car’s total worth may be financed.

Read also: Latest Home Loan Interest rates of every bank – Nov 2023

Loan Features

High-value financing: LTV, or Loan to Value ratio, is the ratio of the loan amount against the market value of the car that you are going to purchase. Many bank offers the best possible LTV ratio on every type of vehicle loan so that you do not have to worry about making a hefty down payment.

Best Interest Rates: When it comes to various vehicle loan kinds, such as new car loans, used car loans, and two-wheeler loans, small finance banks has the most affordable interest rates.

Quick Loan Disbursals: We make sure that your loan amount gets disbursed in no time once your loan application gets approved. This allows you to purchase and register your vehicle without any delay.

Hassle-free documentation: Gone are the days when applying for a loan used to be a complicated and time-consuming process. we give you the option to apply for a car or a 2-wheeler loan online and provide scanned copies of your ID, address, and other documents.

Eligibility Criteria

The eligibility criteria for a vehicle loan can vary depending on the type of loan you are applying for i.e. car loan, bike loan, used car loan, etc. However, in order to become eligible for availing a vehicle loan, an individual should have a stable source of income and a good credit score.

Read Also: Home Loan : All You Need to Know About Getting Home Loans

Required Documents

The essential documents for a vehicle/car loan that you need to keep handy while applying are: –

  • Proof of Income – Form 16, salary slips, Income Tax Return documents
  • Proof of Identity – Aadhar card, Driving Licence, Passport or PAN card
  • Bank Statement of three to six months
  • Proof of Age – Matriculation Certificate or Aadhar Card or Birth Certificate
  • Proof of Address – Aadhar card or Driving Licence or Ration Card (Family Card) or Passport or Voter ID

Read Also: Use these 9 tips to get the most out of your credit card spending

Car Loan Interest Rate for All Banks as on 29th Jan 2024

Bank NameInterest RatesEMI per Rs. 1 lakh for 7 Years
Axis Bank8.50% – 11.25%Rs. 1,584 – Rs. 1,725
Bank Of Baroda7.35% – 9.10%Rs. 1,526 – Rs. 1,614
Bank of Maharashtra7.70% – 8.45%Rs. 1,544 – Rs. 1,581
Canara Bank7.30% – 9.90%Rs. 1,524 – Rs. 1,655
Central Bank of India7.25% – 7.50%Rs. 1,522 – Rs. 1,534
Corporation Bank7.40% – 7.50%Rs. 1,529 – Rs. 1,534
HDFC Bank8.80% – 10.00%Rs. 1,599 – Rs. 1,660
ICICI Bank8.82% – 12.75%Rs. 1,600 – Rs. 1,806
IDBI Bank8.40% – 9.00%Rs. 1,579 – Rs. 1,609
Indian Bank8.20% – 8.55%Rs. 1,569 – Rs. 1,586
Union Bank Of India7.40% – 7.50%Rs. 1,529 – Rs. 1,534
Punjab National Bank9.40% – 9.90%Rs. 1,629 – Rs. 1,655
State Bank of India7.95% – 8.70%Rs. 1,556 – Rs. 1,594
UCO Bank7.70% – 9.30%Rs. 1,544 – Rs. 1,624
Bank of India7.35% – 7.95%Rs. 1,526 – Rs. 1,556

Disclaimer: The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon. Also, www.finnbuzz.com and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.

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