Thursday, January 21, 2021

Understanding Car loan


What is the car loan? It is a type of loan for personal use only but unlike a personal loan which can be used for different purposes, including buying a vehicle a car loan is for purchasing a car only. Anyone can apply for a Car loan with several banks in India but the question is which bank will suit your needs. ICICI bank gives you some of the best deals available in the market.

A car loan is a type of loan that you can avail of for purchasing a new or pre-used vehicle. The loan is paid in portions with an interest rate that depends on the amount of the loan taken. The bank charges a security fee in case there is any prepayment or post-payment so that the bank is not a loss for the client’s default.

 Who are those eligible for this type of loan?

  1. Salaried people who are eligible for this loan. They should be 21 years of age to 60 yrs old.
  2. They must fall under the Least Net Annual Salary of Rs. 2,40,000 p.a. for all vehicle models.

 In case the loan taker is a businessman

  1. At Least 1-year reliable business.
  2. At 18 years of age and most 65 years of age.
  3. Least Net Annual Business revenue of Rs. 1,80,000 p.a. and Rs. 2,00,000 p.a..  
  4. A car loan processing expense/fee or interest rate is an insured amount that is taken during the loan application cycle.

FICO evaluation

It is of utmost importance that the bank checks your repayment status for giving you the loan. Your FICO evaluation will affect both the total amount and the loan interest rate, which can be fixed or variable. The better your FICO is the higher your loan limit, and the lower your loan interest. Of course, if it is less the limit will eventually be lesser, and lesser are the other perks.

Know your requirements before you apply for any loan as may encourage you in picking the best arrangement that the ICICI bank can offer. A large part of when purchasing a vehicle can be obtained through the loan, a borrower gets 100% of the on-road price of the car. 

All car loans are for a certain time period this may range from 1 year to 7 years, it is obvious that lessen duration comes with heavier emails and longer duration as lesser EMI amount, yet some car advances can be for longer periods. Car loans generally consolidate a variety of charges and obligations, which are added to the total sum. The total amount you can benefit from depends upon your age and pay status. The changes that are charged vary from one bank to another. This depends upon your net month to month repayment status. The span is 25-48 times of 'net month to month pay' or 4-6 times of yearly fee. car loan interest rates for the perused car are also of variable range as the rates depend upon the on-road price of the car. The age of the car and much more. ICICI Bank gives car loans of up to 100% ex-display area cost of the vehicle. The car loan comes at low financing costs and a long reimbursement residency of as long as 7 years. Borrowers can apply online to get moment endorsement and quicker handling.

ICICI Bank Pre-Owned/Used Car Loan

ICICI Bank gives loans up to 80% of the valuation of used cars. Loans with the extreme residency of five years are accessible actually cars. Documentation measures and other expenses/charges are the same as other loans.

ICICI Bank gives a loan on used and old cars at a 15.50 percent premium. Handling expenses and charges for old cars are 2% of the Loan sum or 6,000 whichever is lower.

 Conclusion

The interest rate charged by the bank on any amount is generally fixed. This makes repayments easier without worrying about any late EMI. With ICICI Bank you can easily track your car loan status. Clients just have to go to the bank's website and look for ICICI car loan status with just a few clicks and few details you can track your loan status.


Also read:- Which car should I purchase through a car loan?


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