Auto Loan: Helps in Realizing Dream of Having a Car

If one is planning to own a car, then one can easily satisfy his desire by getting an auto loan for car. In car loan one does not face many problems, as it does not involve much paperwork, as in case of home loan. The bank and financial institutions normally do not do physical verification of the asset, but just checks the process of getting a car loan.

Firstly, the applicant has to approach the lender for availing the car loan. The customer should ensure that the person will meet as many lenders as one can, so that the person gets the best deal of an auto loan. One should finalize any lender only when the person is satisfied with the auto loan interest rate, special offer on an auto loan, loan amount, loan tenure, etc.

Secondly, the person should meet the financing agent, who will check his identity proofs, residence proofs, income proofs, etc. the borrower has to furnish his details of income by providing docs of salary slips and Form 16, in case of salaried and ITR & balance sheet & profit & loss account, in case of self employed. The documentation of an auto loan differs with the lender.

Thirdly, after the applicant submitted his documents, the field investigator visits the applicant house to check the customer creditability. It is essential for the customer to be at home during such investigation.

Other requirements for availing this loan are that the customer should be above the age of 21 and maximum age is 60 for applying the loan. The customer income should also have an annual income of and above Rs.1lac.

The customer can also avail personal loan for purchasing a car, but the amount of the loan may differ from lender to lender, as the interest rate varies among different lenders. The amount of the loan also depends upon the model of the car. The banks usually provide 85% of the market cost of an auto loan. One can avail loan minimum of Rs.1lac for a new car and a second hand car; one can avail minimum loan of Rs.75000. The person can repay the loan amount from 1 yr to 5 Yrs, and in some cases, it is 7yrs. One can repay the amount through EMI. Though, the interest rate and the EMI amount vary in personal loan as it depends upon the loan amount, loan tenure and customer profile.