If you are planning to buy a petrol car in India, you may have to consider various financing options. A car loan is a great way to purchase a car without paying the entire cost upfront. However, the process of financing a petrol car in India can be daunting. This guide will help you understand everything you need to know about petrol car financing in India.
To avail of a car loan in India, you need to follow a specific process. Here are the steps you need to follow to get a petrol car loan from finance companies in India:
Choose the car you want to buy: Before you apply for a petrol car loan, you need to decide which car you want to buy. Do your research and compare different models and their prices to make an informed decision.
Check your eligibility for the loan: Once you have decided on the car you want to buy, you need to check your eligibility for the loan. The eligibility criteria may vary from lender to lender, but generally:
you need to be an Indian citizen,
at least 21 years of age
have a regular source of income,
and have a good credit score.
Fill out the application form: After checking your eligibility, you need to fill out the application form. The application form may be available online or at the bank's branch.
Submit the required documents: Along with the application form, you need to submit the required documents. The documents may include identity proof, address proof, income proof, and car documents.
Wait for the loan approval: Once you have submitted the application form and the required documents, the lender will verify your details and assess your creditworthiness. If you meet the lender's eligibility criteria, your loan will be approved.
Get the loan disbursed: After the loan approval, the lender will disburse the loan amount to the car dealer or your account. You can then use the loan amount to buy your petrol car.
To avail of a petrol car loan in India, you need to meet certain eligibility criteria. Here are the general eligibility criteria for a car loan:
You must be an Indian citizen: To avail of a car loan in India, you need to be an Indian citizen. Non-resident Indians (NRIs) may also be eligible for car loans, but the eligibility criteria may differ.
You must be at least 21 years of age: To apply for a car loan, you need to be at least 21 years of age. The maximum age limit may vary from lender to lender.
You must have a regular source of income: To repay the car loan, you need to have a regular source of income. The income may be from salary, business, or profession.
You must have a good credit score: A good credit score indicates that you have a good credit history and are likely to repay the loan on time. The credit score may vary from lender to lender, but generally, a score of 750 or above is considered good.
To apply for a petrol car loan in India, you need to submit some necessary documents. Here are the documents you need to submit:
Identity proof (PAN card, Aadhaar card, passport)
Address proof (utility bill, rental agreement, passport)
Income proof (salary slips, bank statements, ITR)
Car documents (insurance, registration certificate)
Car loan interest rates in India vary from lender to lender. Generally, the interest rates for petrol car loans in India range from 7% to 14%. The interest rate may depend on factors such as loan amount, repayment tenure, and borrower's credit score.
The tenure for a petrol car loan in India varies from 1 year to 7 years. You can choose the repayment tenure based on your financial stability and repayment capacity. The loan repayment tenure may also affect the interest rate.
Car Finance from Manufacturers
Alternatively, some manufacturers also provide car loans which have certain benefits over loans from finance companies:
Streamlined loan processing on a tight timeline.
Manufacturers can offer up to 100% funding for in-house brands. So, you need not worry about a down payment.
Purchasing a petrol car in India can be a significant investment, and car financing can help you manage the costs. With this guide, you can understand everything you need to know about petrol car financing in India, including the loan process, eligibility criteria, required documents, interest rates, fuel prices, and repayment tenure.
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