Cholamandalam Investment and Finance Company Limited (Chola) was founded in 1978. It operates under the Murugappa Group and offers a wide variety of car loans. The types of loans available at Cholamandalam are:
Two wheeler loans
Commercial vehicle loans
Car and MUV loans
Construction equipment loans
The key features of Cholamandalam Finance car loan are:
Loans are available from Rs 1 Lakh
Loans are provided for both new and used vehicles
It has provisions for motor insurance, life insurance and personal accident cover
Your need will be answered by a personal relationship manager
Cholamandalam Bank has 1093 branches all over the country which makes it easily accessible.
The interest rate of Cholamandalam Finance car loans varies according to the financial profile of the customer. However, lenders do consider certain factors while providing loans to customers. Here are three important factors that affect Cholamandalam Finance car loan interest rate:
Satisfactory Credit Score: Having a good credit score will enable you to get loans easily. If you have a credit history that will satisfy your lender, you are likely to get a loan at a lesser interest rate. A higher credit score will also enable you to bargain your loan interest rate.
Your Income: Income is an important determining factor when it comes to car loans. If you have a higher income you can get loans at a lesser interest rate. This is because the lender will know that you won't have a problem paying the EMI.
Term Duration: Generally car loans are available for a period of seven years. However, the longer your term is, the more interest you will have to pay. You must know how long you need to repay your loans.
Applying for a car loan at Chola Finance involves an easy and swift process. Here is how you can apply for a Cholamandalam car loan online:
Step 1: Open the Cholamandalam Finance's website on your device
Step 2: Click on the 'What we offer' tab on the top of the page, and then click on 'Vehicle loans'.
Step 3: Next click on 'apply for vehicle finance'.
Step 4: Then you have to provide your details such as your name, date of birth, address, email ID, phone number, type of employment, etc. and click on the 'submit' button
Step 5: Once the above steps are done, the lender will verify your details and you will have to visit its nearest branch to submit the required documents.
Step 6: After the verification, if you are found suitable for the loan, the amount will be transferred to your bank account.
If you do not have an online facility, you can easily visit any branch of Cholamandalam Finance in the country. The bank will provide you with a relationship manager who will guide you through the process. You can fill up the forms and submit the relevant documents at the nearest branch.
Every lender will check out whether you meet its criteria before approving your loan. Similarly, Chola Finance has certain benchmarks for your car loan application to be approved. Here is the basic eligibility criteria for a Cholamandalam car loan:
You must be aged above 21 years
You must be a resident of India
You must be an individual who is salaried or self-employed.
Your minimum annual income must be Rs 3 lakh
The amount of your car loan will be decided according to your salary. Chola Finance will set the terms and conditions as per your salary.
If you want to avail of Chola Finance car loan, you will be required to submit the following documents:
Identity Proof: Passport, voter card, driving license, ration card etc
Address Proof: Adhar card, valid passport, Voter Id card, driving licence, property tax bill (not more than 6 months old)
Income Proof: Bank statement or salary statement
Everyone loves to drive a car. For most people taking out a car loan seems to be an easy option. However, car loans are serious issues and need careful planning. Read these pros and cons if you are deciding on a car loan.
Immediate Money: Loans can provide you with immediate cash to buy your dream car. You no longer have to wait for savings.
No Need to Pay Upfront: Most people are attracted by car loans because they do not have to pay immediately.
Interest Rates: Often you might have to pay more than the original price because of high-interest rates.
Bank Owns Your Car: Unless you clear the last bit of your payment, the bank is the owner of your car. In case you fail to pay up, the bank will take the car away.
Cholamandalams second-hand car interests start from 9.20% and are between 9.20% to 11.25% per annum.
You can check your loan status by visiting Chola Finances website and clicking on my account.
If you want to close your car loan before 7-12 months of the due date, 5% of the outstanding amount will be charged along with service tax.
To know your eligibility you have to go to Cholas website and click on what we offer, which will take you to vehicle finance. On the right-hand side is the eligibility button
Cholamandalam Finance charges 10-17% interest rate for car loans.
You must be at least 21 years old.
Chola Finance provides loans from INR 1 lakh onwards
If all your documents are found to be valid, then Chola will approve the loan within 5-7 business days.
Yes, Chola Finance provides car loans for both new and used vehicles.