The finance availed of to buy either a new or a used car is known as car loan. Car loan is one of the complex loan products in India as car dealers tend to include various discounts offered by car manufacturers or lenders (banks and other financial institutions) in the interest rate offered to the buyer.
Types of car loan
There are three types of car finance available today, viz.1. For purchase of a new car
Owning your dream car now becomes easy, with the multiple options to avail of a car loan extended by lenders today. You can choose from a range of options to select one best suited to your needs.
Depending upon the lender, there are a host of benefits available to the customer when availing of a car loan.
For example, preferred pricing for existing customers, minimal documentation, faster processing time. Some lenders even offer special rates of interest to existing customers.
You can avail a car loan if you are either a salaried person or a self-employed professional, and want to buy either a new or used car. Typically, the amount of a car loan extends up to 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals.
Identity proof (any one): Voter’s ID, PAN card, driving license, passport.
Income proof: Latest salary slip, previous year’s Form 16, bank statement for the last 6 months.
Residence proof (any one): Voter’s ID, PAN card, driving license, passport, electricity bill, telephone bill or ration card.
Valid car documents.
A higher or ‘good’ credit score can translate into some tangible benefits for the buyer, as it typically means that the loan would be offered at the most competitive interest rates and other terms.
Credit Sudhaar helps you analyse a range of car loan deals that are available in the market. Our Car Loan Eligibility Calculator helps you check your eligibility criteria, repayment options, types of interest rates, and type of car loans that you can afford to avail of.