Are you dreaming of hitting the open road in your dream car? At CredBharat, we understand that owning a car is not just a luxury but a necessity in today's fast-paced world. That's why we offer a range of car loan solutions to turn your dream into a reality. With our hassle-free application process and competitive interest rates, we're here to make car ownership easier for you.
Interest rates for car loans can fluctuate depending on various factors and the specific bank you choose. We've compiled a selection of competitive interest rates that are currently accessible to you. Explore the interest rates offered by various banks now.
| Bank | Interest Rate (p.a.) |
|---|---|
| State Bank of India(SBI) | 8.60 p.a. onwards |
| HDFC Bank | 7.90% - 11.01% p.a. |
| ICICI Bank | 10.00% onwards (12-35 months) |
| Axis Bank | 8.95% - 13.80% p.a. |
| Kotak Mahindra Bank | 7.70% - 25% p.a. |
| RBL Bank | 12% - 14% p.a. |
| Canara Bank | 9.15% p.a. onwards |
| Federal Bank | 11.00% p.a. onwards |
| Bank of Baroda | 8.85% p.a. onwards |
It's essential to carefully review and account for car loan fees and charges, which encompass processing fees, documentation charges, prepayment penalties, and late payment fees. Understanding these fees is vital for effective budget planning.
Below, we've compiled a comprehensive list of charges and rates associated with applying for a car loan.
| Features | New Car | Used Car |
|---|---|---|
| Interest rates | 8.90% p.a. onwards | 9.40% p.a. onwards |
| Loan Amount | Up to 100% of the ex-showroom price | Up to 80% of the car’s valuation |
| Loan Processing Fees | Starting from 0.20% of the loan amount | Up to 2% of the loan amount |
| Loan Tenure | Up to 7 years | Up to 5 years |
Prepayment/Foreclosure Fees
These charges typically range from 0.5% to 5% of the outstanding principal or the remaining interest for the loan's remaining term, whichever is lower.
Utilize a car loan EMI calculator to approximate your monthly repayment and gain a clear understanding of your financial commitments. This tool assists in planning your car loan, assessing interest rates, and determining your eligibility and loan affordability.
By entering the loan amount, interest rate, and loan tenure, the calculator offers an estimate of the Equated Monthly Instalment (EMI) required for your car loan.
Prior to considering a car loan, it is crucial to assess your eligibility factors to determine if you qualify. You can verify your eligibility here:
| Criteria | Requirement |
|---|---|
| Type of car | Used Car loan/ New car loan |
| Residence | Urban/Rural/Semi-rural |
| Age | 18 yrs - 75 yrs |
| Employment type | Salaried/Self |
| Salary | Depends on the bank |
When applying for a car loan, you will need to submit essential documents as evidence of your identity and income. Below is a list of the required car loan documents:
A car loan offers numerous advantages, including affordability, convenience, credit-building opportunities, and the potential for asset appreciation.
In addition to fulfilling fundamental eligibility criteria, obtaining approval for a car loan entails adhering to specific guidelines:
Personal loans and car loans have distinct purposes and characteristics, and the choice between them depends on your specific borrowing needs. Personal loans, being unsecured, offer flexibility, including the option to use the funds for buying a car. In contrast, car loans are tailored specifically for vehicle purchases. However, several criteria differentiate these two types of loans. Here are some key distinctions:
| Aspect | Personal Loans for Car Purchase | Car Loans |
|---|---|---|
| Purpose | Can be used for various personal expenses. | Specifically designed for purchasing a vehicle. |
| Collateral | Typically unsecured loans. | The car itself acts as collateral. |
| Loan Amount | Generally lower loan amounts. | Higher loan amounts depending on the vehicle's value. |
| Interest Rates | Interest rates may be higher. | Lower interest rates due to the collateral. |
| Loan Term | Loan terms can vary from a few months to years. | Loan terms are usually shorter, often up to 7 years. |
| Repayment | Fixed monthly instalments. | Fixed monthly instalments. |
| Flexibility | Funds can be used for various car re-purposes. | Funds are dedicated to car purchase only. |
| Eligibility | Based on credit history, income, and other factors. | Creditworthiness, income, and vehicle details are considered. |
| Ownership | No impact on ownership of assets. | Ownership of the car upon successful loan repayment. |
Car loans provide versatility in both loan amounts and repayment tenure, offering competitive interest rates contingent on your credit history. They also feature swift approval processes and accommodate financing for a wide range of car models, all while offering the convenience of repayment through Equated Monthly Installments (EMIs).
To obtain your car loan via CredBharat, it is essential to follow these steps:
Car loan prepayment permits you to settle your outstanding balance ahead of schedule, resulting in interest savings and debt elimination.
Car loan refinancing involves substituting an existing loan with a new one from an alternate lender, often leading to enhanced terms, reduced rates, and potential cost savings on both payments and interest. It's advisable to assess your options, conduct lender comparisons, and factor in any associated fees when contemplating a beneficial refinancing choice.
Here are several compelling reasons to consider car loan refinancing:
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