Are you looking for a car loan to buy a brand-new car? If yes, the Corporation Bank car loan is a perfect choice. The Corporation Bank, now known as Union Bank of India, offers attractive car loans to individuals, self-employed, salaried and business people. The maximum loan amount offered by this bank is up to 85% of the cars on-road price & minimum loan amount is rupees 1 Lakh.
It involves various benefits and features, such as:
No Hidden Charges: The car loan from Corporation Bank has no hidden charges or fees. They only charge the processing fee and interest rate over the loan amount.
Quick Approval of Loan: They have a quick loan processing system, i.e., once the documentation is done, the loan application gets processed within a few hours. Also, loan disbursal is initiated within 24 hours.
Lowest Car Loan Interest Rate: Being a leading public sector bank, the interest rate of a Corporation Bank car loan starts from 7.50% p.a. It gets calculated on factors like your credit score, loan amount and loan tenure.
Insurance Coverage: Every person taking a car loan from Corporation Bank gets insurance coverage which they can choose from the options provided.
Interest rates on loan amounts differ from person to person. Some of the factors affection Corporation Bank car loan interest rates are as follows:
Amount of the Loan: The Interest rates on loan amount increase and decrease depending on the loan amount you are applying from. The lower the loan amount, the higher its interest rate will be, and vice versa.
Loan Tenure: Another factor creating a major impact on the rate of interest on loans is tenure. A shorter period of loan attracts lower interest rates, while a longer period of loan attracts a higher loan rate.
Your Credit Score: Everyone has their credit score depending on their past payments and income stability. If your credit score is 750 or above, then there are more chances of you getting a lower interest rate on your loan.
The following steps must be followed to apply for a car loan from Corporation Bank:
Go to Corporation Banks website.
Head to the tab "Loans," and from the drop-down list, choose "Car Loan."
A form will be displayed on the screen. Fill in all the information asked in that form.
Then, upload the required document like income proof, identity proof and others.
Lastly, submit the form by pressing the submit button.
The eligibility criteria for securing car loans from Corporation Bank are as follows:
The person applying for a car loan must be between 18 and 75 years old.
Self-employed professionals, business people, salaried employees, corporate firms and trusts having regular income sources can apply for the loan.
Anyone with a minimum annual income of 2.50 lakhs per annum can apply for this loan.
The following documents are essential while applying for a car loan:
Address Proof
Identity Proof
Income Proof
Photograph
Car Documents
Income tax returns for self-employed
Aadhar Card
The pros and cons of borrowing a car loan from Corporation Bank are as follows:
Pros
Car loans can be beneficial for getting access to a self-owned vehicle.
Timely repayment of car loans can help you grow your credit score.
They are flexible and convenient as they offer various repayment options as per your convenience.
Various options of loan providers are available, which benefits borrowers as they can choose their best fit.
Cons
Increases debt on an individual.
Failure to repay can decrease their credit score, leading to difficulty in availing of loans in the future.
If you fail to read the terms and conditions of a loan document completely, it may result in extra charges over time.
The minimum interest rate Corporation Bank offers on their car loans is 7.50% p.a.
Mandatory documents needed for a car loan include address proof, income proof, identity proof and car documents.
The maximum car loan tenure can be a maximum of 7 years.
Yes, the car you are taking a loan for will act as the collateral.
No, there are no charges. Borrowers can repay their outstanding amount of loan anytime.
You can check your car loan application status using the Corporation Banks net banking services.
The maximum loan amount to avail of your new car is 85% of the on-road price or up to Rs. 1,00,00,000 per vehicle.
There are 3 payment options available, i.e., post-dated cheques, direct debit from bank accounts and electronic clearing services.
Yes, the corporation bank verifies the necessary income requirements, credit score and eligibility after receiving the necessary documents.
Yes, they offer a discounted interest rate on purchasing a vehicle of less than Rs. 50 lakhs.