New cars are being launched every year with exciting features and innovations. These cars are designed in a way that they tempt you to leave yours. Uniquely featured with modern facilities, new models create a desire in the heart of passionate car lovers. Yes, of course it is not possible to get new car every year but once a while it is good to gratify your desire. Also, to help you get your dream car the financial companies and banking institutions provide the car loan. These loans are made to provide the aspirant car buyers their favorite car model and fulfill their wish. The car loan product makes people realise their dreams.

With multiple banks offering the car loan, people can compare and check the interest rates, eligibility criteria and other relevant details. It is important to compare the car loan interest rate as this will impact the EMI amount you will be paying later. For your reference car loan eligibility and interest rate of some of the banks are provided. Read the article below to know more:

State Bank of India:

SBI Bank grants finance for the purchase of a new car for the tenure of 7 years. The loan eligibility parameters are as follows:

  • The minimum age of the applicant must be 21 years and maximum age should be 65 years at the time of repayment.
  • The suitable employment categories are: Permanent Employee of State/Central Government, Public Sector Undertaking, Private Company: Net Annual Income of the Applicant and Co-Applicant together should at least   be ₹ 2,50,000.
  • Professionals, Self-employed, Businessmen, Proprietary/Partnership firms: Net Profit or Gross Taxable income should be ₹ 4,00,000 per annum & above
  • People Engaged in Agricultural and Allied Activities: Net Annual Income of the Applicant and Co-Applicant together should at least be ₹ 4,00,000

Interest RateThe lending rates on a new car loan for women borrowers ranges from 9.10% – 9.20% p.a. while for male applicants it is 9.15% – 9.25% p.a. Whereas, the used car loan rates varies from 10.40% -12.65% p.a. for female applicants and from 10.45% – 12.65% for male borrowers.

HDFC Bank:

At HDFC, people can take loan up to ₹ 1,50,00,000 for the maximum tenure of 7 years. The eligibility criteria for people engaged in different occupational sectors is:

Salaried-

  • Category – Doctors, CAs, Employees of selected public and private limited companies and government sector employees
  • Age – Minimum – 21 years, Maximum – 60 years (at time of maturity)
  • Work Experience – Total experience of 2 years with minimum 1 year job continuity at current work place
  • Minimum Income – ₹ 1,80,000 per annum

Self – Employed (Sole- Proprietorship)-

  • Category- Sole-Proprietors engaged in the business of manufacturing, trading or services
  • Age – Minimum – 21 years, Maximum – 65 years (at time of maturity)
  • Work Experience – Running business for at least 2 years
  • Minimum Income – ₹ 60,000 p.a. for standard car & ₹ 1,00,000 p.a. for mid-sized and premium cars

Self- Employed (Partnership Firms, Private and Public Limited Companies)-

  • Category – Operating in the field of manufacturing, trading or services  
  • Income – Minimum Annual Turnover should be ₹ 4,50,000

Interest Rate – The lending rates for new car loan ranges from 11.50% – 13.75% p.a. and for used cars it variates from 14.50% – 17.50% p.a.

ICICI Bank: ICICI Bank provides loan up to 100% ex-showroom price for the tenure of 7 years. The following candidates can avail the benefit of car loan:

  • The salaried, self-employed professionals and self-employed non-professionals can apply for a car loan.
  • The applicant must have a minimum age of 21 years but should not exceed 65 years.

Interest Rates– The ICICI new car loan interest rate varies from 10.75% to 12.75% p.a. and depends on the tenure of the loan. However, the rate of interest for the pre- owned car is 15.50% p.a.

Axis Bank- The minimum loan of ₹ 1,00,000 is issued by the Axis Bank and the maximum loan amount of up to 85% of the on-road price and 95% of the ex-showroom price is given on the selected models. The repayment is to be made within the tenure of 7 years. The car loan eligibility of the bank is given below:

Salaried-

  • Age – Minimum – 21 years, Maximum – 70 years at time of loan maturity
  • Minimum Net Annual Income – ₹ 2,40,000
  • Work Continuity – 1 year

Self – Employed Individuals-

  • Age – Minimum – 18 years, Maximum – 75 years at time of loan maturity
  • Minimum Net Annual Income – ₹ 1,80,000 for selected models and for others ₹ 2,00,000
  • Work Continuity – 3 years in the same line of business

Self – Employed Non- Individuals-

  • Minimum Net Annual Income – ₹ 1,80,000 for selected models and for others ₹ 2,00,000
  • Work Continuity – 3 years

Interest Rates- The rate of interest for salaried individuals is 9.15% p.a. and for others, it ranges from 11 -12% p.a. The bank also offers used car loan for the tenure lasting up to 5 years at the interest rate of 14.50% – 16.25% p.a.

When you apply for car loan then make sure you keep the required documents handy.

Documents Required for Car Loan:

The following documents are requisite documents:

  • Age proof
  • ID proof
  • Application form
  • Photograph
  • Residence proof
  • Income proof
  • Bank statement
  • Signature verification proof
  • Pro-forma Invoice or Rate List

Car loan is helpful for the potential car buyers as it give wings of finance to your wish. But make sure you compare the rates before applying for loan.

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