Mahindra Finance Car Loans

About Mahindra Finance

Mahindra Finance is your one-stop solution if you are looking for a car loan. Mahindra Finance began as Maxi Motors financial services in 1991. This finance company has been a major player in the loan market for a long time and has gained popularity as a Non-Banking Financial Company in rural India.

In 2022, the Economic Times awarded Mahindra Finance as the best BSFI bank. Mahindra provides car loans for both old and new cars. Today Mahindra's loans have been exclusively designed in a manner that would fulfil all your diverse needs.

Features of car loans at Mahindra Finance

Mahindra Finance provides attractive opportunities for its customers, such as:

• 100% financing options

• Flexible repayment tenure

• Affordable EMI

• Customized car loans are available for car brands like Mahindra, Hyundai, TATA Motors, Maruti Suzuki, Renault, and Nissan

• Trained officers will guide you through the process of documentation

Benefits of car loan from Mahindra Finance

1. Quick loan approval and processing time

2. Flexible repayment option

3. Minimal documentation

4. Loans are available to farmers and traders

5. Mahindra Finance car loans are also available in areas where such loans are not readily available

6. Online EMI facility available

Factors Affecting Mahindra Finance Car Loan Interest Rates

Multiple factors determine the rate of car loans. Some of the factors are:

1. Your credit score: Your credit score will be taken into account when you buy a car. You can also bargain for a better deal if you have a good credit score.

2. Income level: Having a stable income is a good sign. This means that the lender will know you won't have problems paying the EMI. This also reduces the probability of car loan defaulting.

3. The amount of downpayment: It is always better to pay a higher downpayment if you can afford it. The more you pay for the downpayment, the less you would owe to the bank. This reduces the liability on the part of the bank. Hence this will increase your chance of getting a car loan approved. Along with this, you might also get the benefit of a lower interest rate.

How to Apply for Mahindra Finance Car Loan

• Step 1: Download the Mahindra Finance app or visit their website.

• Step 2: Go to the top bar where "Loans" is mentioned, and click on the "Car Loan" option.

• Step 3: As soon as you click on the "Car Loan" section, you will see sections like Features and Benefits, Eligibility and Documentation, and FAQ. If you want to know about these, click on your chosen option.

• Step 4: Next, click on "Apply Now" and select the type of loan you need.

• Step 5: Then, fill in your details and your employment type.

• Step 6: Click on "Submit", and you are good to go. Now the representative from Mahindra Finance will call you and ask for further information.

If you do not have an online facility, head over to your nearest branch of Mahindra Finance and submit your documents. You will be provided a personal representative to guide you through the process.

Eligibility Criteria for Applying for a Car Loan

• You must be a salaried or self-employed individual (farmers and traders are also eligible to apply for a car loan ).

• Your age must be between 21-60 years

• You must meet Mahindra Finance's eligibility criteria

Documents required for Applying for a Car Loan

1. KYC documents such as Adhaar card, Passport, and Driving License

2. Identity proof: PAN Card, Voter ID, Driving Licence, and Passport

3. Address proof: Voter ID card, Aadhaar card, and Passport

4. Income proof: Salary Slip, Income Tax Return Certificate, Form 16 or Bank Statements.

Pros and Cons of Taking Out a Car Loan

Pros of a car loan:

1. Purchasing a car without any down payment: Although down payments can save you from higher interest rates, car loans allow you to purchase your dream car without paying any money upfront.

2. Improvement in credit history: As long as you can pay your EMI on time, car loans can allow you to improve your credit score. This will be helpful if you want to take any other loans in the future.

Cons of a car loan:

1. Rate of interest: After adding the interest rates, the final amount that you will be paying can often exceed the actual amount of the car.

2. Your lender is the owner of your car: Until you clear that last bit of your payment, your lender has full ownership over your car. If you fail to make your payments, the lender has the right to repossess your car and sell it off even without your consent.