FAQs

Fill the simple loan application form to the right, and we will get back to you with the best deals on car loans. You can then decide from margin money schemes, advance EMI schemes and deposit payment schemes. Usually margin money schemes offer the best terms, but at the end of the day, effective interest rate of the loan is what essentially matters.

The amount of the loan depends upon:

  1. Vehicle cost
  2. Vehicle type (standard/premium)
  3. The percentage of finance offered

If you are buying a new car, you can get up to 90% financing but some banks have a limit beyond which they do not offer loans. Also different banks have different terms for different models (standard/premium, new/used). The percentage of finance the banks give on cars is also determined on the basis of the resale value of that particular car.

For income proof, most banks look at your IT returns for the last two years and also at the nature of income. However, some banks do not consider speculative income – from the stock market, rental or agricultural income. Some banks discount such income by up to 50% in their workings.

We have dedicated teams at all our lending partners handling our cases. This results in a fast and efficient service for you. You need to submit requisite documents like salary slip, tax returns, proof of residence, bank statements etc. If all the required documents are in order, the processing will take between 2 to 7 days.

Yes, your credit profile is the most important factor the banks will consider before providing you a car loan. Your credit profile is a measure of your capability and willingness to pay back the loan.

Usually auto loan tenure is available from 1 to 5 years. However some banks with schemes, offer loans tenure for 7 years. The tenure also depends on the type of car you wish to purchase. If it is a super-premium car the tenure is restricted to 3 years only. Also know that, higher the tenure, lower is the EMI. But the total interest outflow is higher.

Yes you can pay-off your car loan before the tenure is up by pre-paying your loan amount. But there may be certain rules regarding the pre-payment that your bank may have. Also you may have to pay a small penalty, normally, a percentage of the loan amount that remains outstanding. Some banks however do not penalize you if you decide to pre-pay. Take this aspect into consideration when you choose a bank to take loans from because if later on, you can get a loan at a lower rate of interest, this penalty could compensate whatever you could save through the interest rate differential.

NO. You cannot sell the car unless you repay the loan. A No Objection Certificate is required from the banks before you can sell the car.

Delaying your installments frequently may affect your credit profile and might make further borrowing not only difficult but costly too. However, in some rare circumstances, if you delay an installment, most banks would charge you a delayed payment charge, as high as 3%, compounded monthly.

Dishonoring a cheque is a criminal offence. Legal actions may be initiated against you and your credit profile could be seriously damaged.

Most banks do not finance car-accessories other than those which are factory fitted like air-conditioners. Some may however fund music-systems and other such expensive accessories.

Some dealers may offer you an exchange scheme whereby your existing car can be upgraded to a new one. The dealer will purchase your car at a price depending on the model, year and the condition of the car. The value of your old car is then adjusted against the purchase price of the new car. You could also get the balance amount financed.

After the last payment is made, get the lien of the bank on your car cancelled. The bank will issue Form 35 with a covering letter (NOC) to the RTO for canceling their name from the R/C book. A similar NOC will also be issued to the insurance company requesting for the deletion of their name from the policy.