The need for a car has typically risen in the last few years. Considering the same, different financial and nonbanking institutions have devised different car loan schemes to get the best possible car loans to fulfil your dream of owning a car. Ratnakar Bank, or RBL Bank is one of India's most reputable banks when it comes to securing auto loans. The bank makes it quite easy to disburse the car loan and helps you get the best offers quickly.
Apart from the great reputation that Ratnakar Bank has with its car loan services, various features make it one of the best banks to apply for the same. The borrowers are given a flexible interest rate on their car loans based on an individual case basis.
Some basic features of the Ratnakar Bank Car Loan are as follows:
Loan tenure: 12 to 60 months
Quantum of loan: About INR 50,000 to INR 1 crore
Lowest EMI per lakh: INR 2,224 (which is about 12% p.a. interest for a 5-year tenure)
Late payment charges: 2% per month additional interest on the overdue amount
No due certificate: INR 250 per instance
Charges for issuing CIBIL report: INR 50 per instance
Loan range: You may get a loan covering cars ranging from small, medium to super premium cars and SUVs.
The minimum interest rate that you can expect while applying for a car loan at RBL Bank is about 10.35%. The interest rate can go up depending on your credit profile. The processing charges are about 1% of the loan amount for RBL bank, with their foreclosure charges being about 3.5% of the principal standing amount of the car loan.
The minimum CIBIL required to apply for a car loan at RBL bank is about 650 or higher. However, with anything above 750, you can get a lowered interest rate. The minimum loan tenure of the loan is about 12 months, depending on the individual case.
Ratnakar Bank can offer a range of interest rates for a car loan based on an individual's current financial condition. Different factors affect your car loan interest rates as follows:
Car type and model: The car type, model, and age can determine the interest rate for your car loan.
Loan amount: Typically, the loan amount you have applied for is one of the most determining yet underrated factors in deciding the interest rate offered by the bank. This means the more you pay for your downpayment, the better and lower interest rates you'll likely get.
Income of the individual: Your income will be a huge factor in determining the interest rates of your car loan. The more your annual income is, or the more ITRs you pay, the better chances you have at lowered interest rates for your car loan.
Debts: Your prior debts and deductions from the income will determine the interest rates of your car loans. The lesser debt you have, the better it is for the interest rate of your car loan.
Downpayment: The more downpayment you make, the better your debt-to-income ratio. Thus, a lower interest rate for your car loan.
Credit Score and Financial History: Your financial history, including all of your added expenses and daily finances, will determine the interest rate of your car loan marginally.
Applying for a car loan at Ratnakar Bank (RBL Bank) is pretty easy. Before getting into the application process, let's understand the eligibility criteria for the loan.
Minimum work experience/ For salaried individuals: about 3 years of total work experience.
The minimum annual income for salaried individuals should be about 99 lakhs; for everyone else, you should have about INR 7.5 lakhs.
Minimum age: About 21 years of age
Maximum age: about 60 years of age
Who can avail of the loan: self-employed persons, businessmen, and others.
Now that you know the different benefits of Ratnakar Bank car loan, let's get into the process of applying for a car loan.
To apply for the car loan online-
Step 1: Visit the official website of RBL Bank.
Step 2: Fill up the online application form for the car loan and upload the documents required.
Step 3: Once you upload the documents, the bank scrutinizes them documents and reverts them to you in case they need more documents.
Step 4: If the bank is satisfied with the documents, they proceed with the car loan sanctioning.
To apply for the car loan offline-
Step 1: Visit the bank branch near you.
Step 2: In case you already have an account in the bank, you simply need to verify your details and apply for a car loan right away by filling in the application form.
If you are a new customer, you need to go to the bank with the right documents and then wait to verify these documents.
While applying for a car loan at RBL Bank, you should consider the following tips to negotiate your car loan interest rates:
Sort your score: Once you have a good credit score, banks are likely to offer you car loans with lower interest rates.
Negotiate your terms with the bank: You need to negotiate your terms with the bank and let them know all about your current financial situation. Based on the current data, they will help you with the best interest rate.
Higher downpayment value: Another tip you could go for is to pay a higher downpayment value of the car to get a lower car interest rate.
Choose a short loan tenure: A short tenure of a car loan will save you thousands of bucks of interest while applying for a car loan.
You may get in touch with the bank and talk to the nearest branch manager to help you with your case. They would offer you the right interest rates for your car loan.
Yes, you can check your car loan details, along with your repayment schedule, online through your bank credentials on UCo Bank's official website.
In case you are salaried, you need to show the bank your salary slips along with the bank statement.
The minimum CIBIL score for a car loan is about 750 or higher; however, in some cases, the CIBIL score may also go down a little, and you can apply for a loan for your car.
One of the most traditional car loans from the bank is a secured auto loan, which is offered by banks and credit unions and is tied to the vehicle. This makes it super attractive to opt for the loan by offering you the best interest rates.
Typically, you get an annual car loan interest rate, which is usually divided by the number of months in the year to get a monthly interest rate, similar to the number of days in a month to get a daily interest rate.
The car loans provided by different banks can either be fixed or floating, which means you need to check the same beforehand while applying for a car loan.
Interest rates of car loans are influenced by the demand and supply chain of available loans. Different banks are further influenced by several factors to offer the best interest rates on car loans. For instance, the age of the individual applying for the loan, the loan amount, the car and model you want, and much more.
The car loan is typically not implemented by any bank but is implicated in a general sense. According to the rule, people borrowing a car through a loan should ideally pay the bank about 10% of the on-road price as a downpayment.