Whether for business or for personal use, owning a Car is a real dream for many. When you consider a Car Loan, you are likely to do your due homework in checking for affordability and eligibility. While you must get a Car loan from a lender who has banking expertise in auto loans to get the best rate and comfortable repayment options, you also need to check how much loan you are likely to get and what your EMI looks like.

Age: Minimum Age: 18 yrs to Maximum Age: 75 yrs

Salary: Rs.10,000 per month (minimum)

Employment Type Stability: Salaried or Self-employed individual/ partnership 3 yrs. (minimum) total experience/yrs. in business/profession;2 yrs. (minimum) in current post/business/profession

Type of Car : New or used

Residence Area Stability: Urban/Semi-urban/Rural 1 yr. (minimum) stay at current residence

When you apply for a Car Loan, you will have to submit a set of documents so that the bank can verify the information and approve your loan request. The documents basically include proof of identity, proof of address, proof of age, proof of income, bank statement, and proforma invoice among others. With a wide range of Car Loan products available in the market, it is no longer a distant dream for a middle-class family in India to own a Car. Most major financial services offer Car Loans. Of late, the process involved in getting a Car Loan has become simple through the online application process. With proper documents and paperwork, some financial institutions even offer 100% financing to buy a Car.

• Identity Proof: Aadhaar Card, PAN Card, Driving License, Passport, Voter ID
• Address Proof: Aadhaar Card, Passport, Driving License, Voter ID
• Age Proof: Birth certificate, School transfer certificate, Std. 10 mark sheet, Aadhaar Card
• Bank Statement: 3 to 6 months bank statement
• Signature Verification Proof: Banks have separate forms for applicants to fill up along with their signature

Other charges on Car loans are: Interest rate, preclosure fee, part-prepayment charge, late payment fee, swap charges, stamp duty, and service charges among others.

• Rate of Interest: 8.65% to 20.00%.
• Processing Charges :01%
• Preclosure Fee : 5%.

Part Pre-payment Charges: Part pre-payment refers to a situation wherein a customer pays in advance a certain share of his Car loan before the actual due date. It also helps in reducing the interest burden. Part-payment reduces the interest income for the Bank, and the Bank charges a certain penalty against it known as pre-payment charges.

Charges for late payment of loans: There are no fixed late payments for all the banks the cost hovers around 2% per month on the outstanding instalment. Miscellaneous charges: There are certain miscellaneous charges as well like, Stamp Duty, Service charges, Swap Charges, Bounce Charges, Car loan cancellation charges, GST on loan, Renewal fees, Other government taxes, Levies, etc.

If the borrower pays the loan amount well before the pay-off date, he's charged a particular penalty by the bank. Because the lender doesn't get the anticipated interest, the penalty usually acts as compensation. The Car Loan foreclosure penalty amount depends on the principal outstanding, interest outstanding, and also at what point of the tenure the loan is being paid off.

There are a number of repayment modes which are offered by lenders. Although these modes might differ from lender to lender, the most common modes of repayment can be summed up as follows:

• Electronic Clearance System or ECS:The ECS or Electronic Clearance System is one of the most commonly used repayment methods. It is an electronic mode through which funds are transferred from one bank to another.
• Post Dated Cheques or PDCs:Post Dated Cheques, as the name suggests, are cheques which are issued by you for a future date. The lender will use these cheques on the mentioned date to deposit or encash the amount mentioned on it.
• National Automated Clearing House: The National Payment Corporation of India (NPCI) offers a program called NACH to all the banks and financial institutions. The NACH allows the processing of transactions in real time. This method can be used for your loan repayments.
• Debit mandate or standing instruction: You can give an instruction to your bank to pay off a particular amount of money to another bank or bank account at a regular interval. This is known as standing instruction or debit mandate. Your bank will be paying off the stipulated amount towards the repayment of your loan on a regular basis through this system.

• New Car Loan in Purnea, Bihar This loan option is out there for people that want to shop for a fresh Car. A Car Loan is often taken to shop for any Car model from any maker. you'll need to pay an interest of 9-14% per annum over a period of one-seven years.
• Loan against Car in Purnea, Bihar You can avail of quick funds at a time of need by employing a loan against your Car. If you're eligible for such a loan, the loan amount is transferred to your account almost instantly. What you're doing is popping your existing Car collateral to collect funds to get a replacement Car or for an emergency.
• Used Car Loan in Purnea, BiharMany banks offer used Car loans up to 80-85% of the worth of the Car at a rate of interest of 12-18% p.a. for a loan tenure starting from 1 to five years. Used Car loans are often wont to purchase pre-owned or used Cars that are but 5 years old or don’t exceed quite 10 years at the time of loan maturity.

If you've availed of a Car Loan and need additional funds for purposes like home renovation, wedding, medical emergencies, etc. you'll take a top-up loan on your existing Car Loan. the best benefit that this feature offers is that it's processed quickly and requires minimal documentation because the lender will have already got your details. You can get a top-up loan on your existing Car Loan for up to 100% of its value if you maintain a transparent payment record for a minimum of 9 months. This requirement may vary from lender to lender.

Car Loan balance transfer may be a facility to transfer the outstanding automobile loan balance from an existing bank to a different bank at lower interest rates. If you're paying a better rate of interest on your loan than the market rate, then you'll prefer to transfer your loan to a different bank that gives more flexibility at lower rates. Before making a choice there are few things that a borrower should confine in mind like what he/she is gaining from the transfer, are they eligible for transfer, assess the standard service of a replacement lender, etc.

A Car Loan is a borrowing instrument that a lender such as a bank or NBFC (non-banking financial company) provides to an individual allowing him/her to purchase a Car. Car Loans have gained popularity in recent times as instead of being a luxury item or a symbol of status, Cars have grown to become an essential commodity for the continuously growing middle class of India. With the increased popularity of Car Loans, most banks and NBFCs currently offer this type of loan to individuals who have a good credit history. One point to keep in mind regarding a Car Loan is the fact that this loan invests in a depreciating asset i.e. the asset (Car) bought using this loan is in fact going to cost less over time.

First, shop around for all the various finance schemes on Car Loans available in the market • by applying on deal4loans.com. You can then decide from margin money schemes, advance EMI’s schemes and deposit payment schemes. Usually margin money schemes offer the best terms, but at the end of the day, the effective interest rate of the loan is what essentially matters. This method provides a common podium for assessment of different schemes by discounting on the basis of cash flows.

There are 2 types of interest rates: the fixed and floating rate. In the fixed rate you will have a fixed EMI which you will pay till the duration of the loan this is also safer. With the floating rate the interest rate varies according to the economic situation and tends to change. The interest rate starts from 8.80% and varies from bank to bank. It will depend on your credit score, salary, the loan amount you want and the tenure.

A lot of financial institutions offer up to 90 per cent of the Car value as auto loan. However, the final value might vary with the lender. They check factors such as Car cost, type and value in the second hand market while deciding the amount of loan to offer. Some banks might even lend 100 per cent of the Car value.

The maximum loan amount approved may vary from one bank to the other. Usually, banks approve loan amounts that range from 80%–90% of the Car’s on-road price. Few banks even lend 100% of the Car’s ex-showroom price. In addition to these criteria, the percentage of financing offered depends on the price, type of Car (standard/ premium) and whether you are applying for a new or pre-owned Car.

On an annual reducing basis, the outstanding principal gets adjusted once a year while in the monthly reducing balance; the principal gets adjusted on a monthly basis. Therefore, more of your principal gets repaid on a monthly reducing basis than on an annual basis. However, some banks calculate EMI on a daily or a quarterly basis too.

The EMI due date or cycle is dependent on the borrower. It can be the first of the month or 5th of the month. The borrower can choose the day as per their convenience. Some banks do give a set day as their processing day is automated.

It is best to pay your EMI on time. Most banks will tolerate any late payments for 1 or 2 times and if you don’t pay your EMI at all the bank has every authority to seize the Car. Furthermore if you default on EMI your credit score will take a hit which will spoil your chances of getting any form of credit in the future.