In modern times, if one car has taken the Indian automobile scene by storm, it is the MG Hector. The car debuted in 2019 and became an instant favourite among enthusiasts. With its bold modern design, spacious interiors and powerful engine, the MG Hector has become one of the top choices amongst car buyers in India over the years. The commitment shown by MG to uphold the standards over the years has only added to the popularity of this people's favourite.
Buying an MG Hector can take a toll on your pocket, and it is always better to get a car loan so that it doesn't strain your savings and makes it easier to acquire the car. You can get a car loan as it will make acquiring the car more manageable and has its own merits.
The loan tenure can range from anywhere between 12 months to 84 months.
The principal amount you can get when taking a loan to buy an MG Hector is also high. The bank can typically loan 80% to 90% of the on-road price. In rare cases, it can go up to even 100%.
Another benefit of car loans is that they are quickly approved.
When talking about car loans on MG Hector specifically, it is significant that it comes with affordable EMIs that make it easier to manage the budget.
While you may be excited to get a car loan to buy your dream car, you must also meet specific eligibility criteria to take out a loan. The general eligibility criteria that most banks or lenders look into are as follows:
The most basic of the criteria is age. You must be at least 21 years of before applying for a car loan.
When applying for a car loan, you need to be employed with a regular source of income with a minimum range of 20,000 to 25,000 INR/ month.
Another critical factor is the credit score. It is essential to have a good credit score to get your loan approved. The minimum at which the credit score gets approved is 650 to 750.
The ability to make a down payment is also considered when getting a loan. Even though it depends on the lender's policies, you may typically need to make a down payment of 10 to 20% of the car's on-road price to be eligible for the loan.
To get a car loan, you also need to provide some documents, such as,
While applying for a car loan, government-issued identity and residential proof such as a PAN card, Aadhaar card, passport, or driving license.
Employment and a stable income are a must for a car loan, and to check that, lenders often look at your income proofs such as salary slips, Form 16, IT returns, or bank statements of the previous 3 to 6 months.
You will also be required to submit vehicle documents, such as the invoice, registration certificate, insurance certificate, etc., to confirm the car's ownership.
Note: The exact list of documents required to apply for a loan may vary from lender to lender, and therefore we recommend that you check with your lender to get a detailed list of the required documents.
An EMI calculator is a financial tool used to calculate the monthly instalments you'll need to repay your car loans. It will help you estimate your monthly payments, etc.
The formula used to calculate the EMI for a car loan is as follows:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
P = Principal or the loan amount
R = Rate of interest per month
N = Number of months in the loan tenure
All of the factors vary from lender to lender and based on your situation. Here is a brief overview of the interest rate, processing fees, and other charges for car loans offered by some of the leading banks in India:
State Bank of India (SBI): The interest rate for a car loan to purchase an MG Hector from SBI starts at 7.75% per annum. The processing fee is up to 0.50% of the loan amount, with a minimum of ₹1,000 and a maximum of ₹10,000.
HDFC Bank: The interest rate for a car loan to purchase an MG Hector from HDFC Bank starts at 7.25% per annum. The processing fee is up to 1% of the loan amount, with a minimum of ₹3,000 and a maximum of ₹10,000.
ICICI Bank: The interest rate for a car loan to purchase an MG Hector from ICICI Bank starts at 7.95% per annum. The processing fee is up to ₹3,500 or 1% of the loan amount, whichever is higher.
It's important to note that the interest rate may vary based on your credit score, income, and other factors. Your interest rate may be higher or lower than the above mentioned rates.
The down payment required for an MG Hector varies from lender to lender, loan amount, and other factors such as your credit score and income. Typically, lenders may require a down payment of 10% - 25% of on-road price of cars, including insurance, registration, and other charges.
If you finally decide to get a loan, here are the steps you need to follow:
First of all, check your credit score, and if it is about 750, you are sure to get a loan
The next thing you want to do is to compare and research your prospective lenders. You can pick the one that offers the lowest interest rates, processing fees, etc.
After completing the first two steps, you must also check your eligibility. You may also need to provide your personal information and financial details.
If you are eligible for a car loan, you can proceed to submit the loan application along with the required documents.
After you have submitted the application and documents, the lender will verify your details and conduct a credit check.
Once the loan is approved, the lender will disburse the amount to the dealership or you.
You must repay the loan in equated monthly instalments (EMIs) over the loan tenure.
The minimum and maximum loan amount for an MG Hector car loan varies between lenders. Generally, lenders offer car loans starting from ₹1 lakh to ₹50 lakhs.
The loan tenure for an MG Hector car loan is usually between 1 year to 7 years. The loan tenure may vary based on the lender's policies and your repayment capacity.
The interest rate for an MG Hector car loan varies between lenders and is usually influenced by factors such as your credit score, loan amount, and loan tenure. The interest rate can range from 7% to 15% per annum.
The documents required to apply for an MG Hector car loan include identity proof, address proof, income proof, bank statements, and photographs. The specific list of documents may vary based on the lender's policies.
The processing fee for an MG Hector car loan varies among lenders and is usually a percentage of the loan amount. The processing fee can range from 0.5% to 3% of the loan amount.
Yes, you can prepay your MG Hector car loan. However, some lenders may charge a prepayment penalty for early repayment. It's advisable to check with the lender and understand the prepayment terms and conditions before availing the loan.
The minimum credit score required to apply for an MG Hector car loan may vary between lenders. A credit score of 750 or above is considered good and may increase your chances of getting approved for a car loan. However, some lenders may also offer car loans to borrowers with a lower credit score but higher interest rates.
The maximum LTV ratio for an MG Hector car loan may vary between lenders. Generally, lenders offer up to 80% to 90% of the car's on-road price as the loan amount. The remaining amount is to be paid as a down payment.