Car Loan FAQs
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Car Loan FAQs
By
March 21,2017

Over the years owning a car has become more of a necessity than a status symbol. These days many people residing in urban India own a minimum of one car. Since owning a car has now become a need there are plenty of car loans available in India. But with so many options comes also confusion and most of the borrowers have a lot of doubts regarding car loans.

Here we are going to answer few of the Frequently Asked Questions by our customers.

How to get a car loan?

These days there are a number of loan aggregating sites; one of which is makemymoney.com. You can visit these sites and compare the best loan options yourself. You can also visit various banks and talk to their representatives regarding loans and get all your doubts cleared.

How much loan will I be eligible for?

A majority of the lenders offer about 90% of the total car value as auto loan. However, the final amount depends from lender to lender. Lenders take certain factors into consideration such as the vehicle cost, type and its value in the second-hand market. There are some banks who might even give 100% of the total car value. So basically it depends from lender to lender and also the type of car you want.

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What are the documents required and what is the processing time?

Like any other loan, the documents which need to be provided for car loans are your identity, address and income proofs along with the loan application. Once you have submitted the documents, it takes around 3-7 days for the application to get processed and getting sanctioned.

Can Interest Rates be negotiated?

Yes, the interest rates can be negotiated. This can happen if you are a loyal customer of the bank and have a positive repayment history. Certain banks are also willing to revise the interest rates for such customers.

Car Loan

Can I choose the interest type?

Yes, you can! Lenders offer two types of interest rates. Floating Interest Rates and Fixed Interest rates. According to your convenience, you can choose any one from the two.

What is the loan tenure of a car loan?

An average car loan tenure ranges from 1-5 years. If you have the ability to service a higher EMI, then you can even go in for a shorter loan tenure or you can go for a longer loan tenure if you cannot afford a high EMI.

What if I don’t pay my EMI on time?

Well, the said rule is that you have to pay your EMIs regularly, but there can be times when you fail to pay your EMIs on time. In this scenario, the lender might allow you to delay your EMI payment one or two times, but if it is more than that, then you will be considered a loan defaulter and your car will be taken from you, not to mention that it will have a negative impact on your credit history.

Can I get a loan to purchase used car?

Yes, you can get a car loan for used cars, but you need to consider the fact that going in for a loan for used cars usually means paying a higher rate of interest than the normal ones. Other factors such as the repayment ability, car value, and the likes will also be taken into consideration.

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