Car loan:

As per various kinds of Car loan review, more and more companies are now coming up with Car loan schemes, which are designed so that maximum number of people are able to own vehicles.

• This kind of a loan scheme is the ideal way to help all those who wish to purchase their own cars, but do not have the requisite amount of funds.
• Amount of loan may be used to bridge the gap and finance the shortage.
• Car financing schemes are available for purchase of new vehicles and old or pre-owned vehicles.
• Apart from banks, there are other kinds of financial institutions such as:

a)    credit unions

b)    auto-finance companies

c)    loan-brokers

d)    tie-up arrangements between car companies and FIs

• Loans are available at an easy Car loan interest rate, which may or may not be fixed.
• Funding is offered to all who satisfy Car loan eligibility norms, as specified on the bank’s official website and varied Car loan review analysis.

Car Loan Interest Rates:

• Banks offer loan schemes at Car loan  rate to those who are able to satisfy Car loan eligibility criteria.
• The general range of the Car loan  rate of interest is usually around 9% per annum to about 15% per annum.
• For the purpose of determination of the Car loan interest rate, the base rate is taken into consideration.

Car Loan Eligibility Norms:

As per innumerable Car loan review analysis, following are people as per the Car loan eligibility norms, who are eligible for loan:

• Permanent and salaried employees of government organizations, PSUs, reputed public and private sector firms and companies, educational institutions, like colleges, schools and others
• Above may or may not hold their salary accounts with concerned bank
• Pensioners, who may or may not hold their pension account with said bank
• Non-salaried class, like self-employed businessmen, entrepreneurs and professionals like doctors, engineers etc
• There are many banks that follow varied Car loan  rate as per the profile of the borrower.

Quantum Of Car Loan:

Repayment capacity and present income determine the amount of loan that may be disbursed to the borrower, according to Car loan review.

• Amount of four-wheeler loan is generally calculated as 2 or 3 times of the amount of monthly take-home salary or 6 times of the net take home income of the borrower.
• Usually before disbursement, a margin, equivalent to about 10% to 20% on loan amount. It, further has no relation to Car loan  rate

Procedure To Be Followed While Applying For Car Loan And Documents:

Car loan review  states that many of the financial institutions provide loan schemes on easy terms and Car loan interest rates, after submission of following documents:

• Residential proof
• Photo ID proof
• Salary/income proof
• Bank statements of last 1 year or 6 months
• Letter of standing instructions to the bank, authorizing it to deduct the amount of EMI from monthly salary
• PDCs of amounts equal to the EMIs, including amount of interest at Car loan  rate and principal.

Tenure:

According to Car loan review, general time span for repayment or the tenure of car Loan schemes falls in the range of 1 year to 7 years, at the end of which borrower eligible as per the Car loan eligibility norms, should have repaid entire amount of loan disbursed to him/her.

Repayment Of Car Loan:

Preferred modes of repayment of the car loans are usually either through:

• PDCs, of amount of equated monthly installments, all of which may or may not be required to be submitted at the time of loan-application
• Direct deduction, if there is no check-off facility, enabling direct deduction from salary account, every month.

Pre-Closure Of Car Loan:

• Generally, if there is pre-closure of loan account through take-over by any other FI, then a charge, known as prepayment fee is charged.
• It is independent of the Car loan interest rates levied.