Thursday, August 20, 2020

Pent-up Demand Sees Car loans Soaring


Today more and more people are recognizing the value of having their own car, which is not only helping for daily commuting but is a blessing to have during emergencies. Car loans help even those in the lower-income bracket realize this consumer need. As lockdown restrictions ease, car loans have seen an uptick in demand. With lockdowns easing up around India, sales for many consumer products were driven due to pent-up demand.

One such product is the passenger car, which has seen a favorable demand after a long slump in the market. With public transport becoming a no-go for many, even as offices resume operations, the need to have one’s own car has arisen. The common man in India has been brought on the principle of saving, even as he works hard to fulfill aspirations. The one thing that he/she can afford soon after working is the possibility of owning a car. 

Banks offering car loans:


Major national and multinational banks provide car loans to help your dream come true. Indian banks offering car loans are ICICI Bank, Kotak Bank, IndusInd Bank, PNB, Union Bank of India, and SBI car loan to name a few.


Interest rates:


As per the current rates, HDFC Bank, Axis Bank, Bank of Maharashtra offers the lowest car loan interest rate of 9.25%. These rates can vary depending upon the company you are working with, the loan amount you have applied for, the value of the car, and your repayment capacity. The higher the loan amount, the lower will be the rate of interest. Interest rate, processing fees, loan tenure, pre-closure, and guarantor requirement.. these are some of the terminologies you have to look up you if want a car loan.


Eligibility criteria:


The minimum age limit for applying for a car loan is 18 years in India, and this service is offered to citizens who have crossed their 60th birthday too! The minimum income required is Rs. 3 lakh and above per annum, with at least 1 year of employment in that salary bracket. You will also be required to furnish your proof of employment/income and residence. But don’t fret, if you don’t have the income that matches the requirements of a particular bank, you also have an option of choosing a guarantor. Typically, the guarantor role is fulfilled by parents, who promise to pay the loan in case of default or inability of the loan recipient.


If you were ever hesitant of opting for a car loan, now is the time to take action. The pandemic has made us all assess our priorities. And nothing is more important than our health. With electric cars entering the Indian market, buyers have options like never before. So, book a car loan, and enjoy the safety of traveling in your own car. 

Read More:- Car Loan Application


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