Several car companies have been working with the banks to help buyers to buy their cars at lesser interest rates and better offers when compared to the other banks. This also helps in the marketing and advertising of the vehicle as the company that is giving a better reasonable interest rate in collaboration with the bank will be recognized among the buyers and bank customers. The process of applying for a car loan varies from bank to bank. Getting a car loan from a bank is a very easy and quick task these days, the amount is paid to the customer within a day after the documentation process is completed and car loan processing fees are paid. Customers simply need to visit the company's site and look for offers and deals provided by the bank. Most of the bank's sites have an EMI calculator which will help the borrower to compare the total amount of EMI that they have to pay and compare that EMI with the other banks or moneylenders that are providing the same loan amount.
Some of the steps that need to keep in mind are as follows:
First, you have to fill the form if you are going for an offline or online procedure. The person who is availing of the loan needs to fill up all the important details that are required for documentation such as age, salary, etc. After the submission of the papers, verification of the details takes place in which all the details mentioned by the applicant are verified and cross-checked.
If all the documents and details that are provided prove to be valid and the person has an eligible credit score the loan is approved within 2 days. Security fee is also paid which is equal to a certain percentage of the sum amount that is to be taken by the borrower to buy his or her car.
There are different types of car loan provided by the banks, these are loans for a brand new car, a loan against an existing car, and a pre-owned car loan.
Loan for a new car: As the name tells, a new car loan is an amount that the banks give to the buyers for the acquisition of a new car. Mostly, banks give up to 85% of the total value of the car under this kind of car loan. In these types of loans, this kind of loan is only beneficial when the buyer is about to buy the car. The car is given as security of the loan and the client needs to pay the EMIs in routine time to take care of the loan sum inside the given period of time. Banks can also take the car away if there is any kind of default in the repayment of the loan or EMI payment of the loan within the predetermined period of time.
Since cars are a resource that deteriorates with time and will, in general, lose their quality as time goes by, the sum of the amount for these vehicles is comparatively lower than the amount offered for their different vehicles. Axis bank offers half to 85% of the current market estimation of the vehicle and Axis bank car loan interest rate is 7.99% per annum and In specific cases, banks offer up to 100% on-road funding.
Loan against a vehicle: This is a different type of car loan where the banks give a loan amount to the borrowers against their cars to meet their money requirements. Borrowers who need cash can profit from this kind of car loan.
Conclusion
Any customer can profit up to 50-80% of the present estimation of the car under this loan. The car is taken as the collateral for this loan and is given back after the amount is paid off, you must meet certain eligibility criteria for the car loan and these prerequisites can differ from bank to bank.
Must read:- Eligibility for Gold Loans
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