People dream of having a good house and a good car. The car not only gives you comfort, but also helps you to do many things. Often people take the help of public transport to travel with their family or to travel long distances. For those who have a lot of problems, the car is a great option. Nowadays, getting a car has become much easier than before, where people used to have to put a lot of money together to get a car, now they can buy a car with the help of a car loan.
How to get a car loan? What are the documents, interest rates and procedures for a four-wheeler loan?
Even today, more than half of the population does not have enough money to buy a car, so if one is thinking of buying a car, you will find many types of banks and financial branches. From which you can get a car loan, and also fulfill your dream of getting the car of your choice. But not many people know about getting a car loan, in this article we will explain in detail how you can get a car loan, and what are the documents, interest rate and procedure for a four wheeler loan.
Hypothecation
When you buy your car with a loan, your car is mortgaged to the lending bank and institution. In case of non-payment, your property may be confiscated by the institution. This means that if you are not able to repay the monthly installments on time, the car company you have borrowed may take over.
- Such a rule is part of the car registration process. Once the car borrower repays the loan amount, the company's hypothetical registration is removed from the documents.
- To remove the hypothetical rule from the registration documents, you have to go to the concerned transport office and provide the car insurance documents, no-objection certificate and proof of address.
- One thing you need to pay special attention to is that you need to get NOC from the lending company. Then, after submitting the paper to the insurance company, take the insurance paper issued in the name of the new owner.
Four Wheeler Loan Documents.
- Identity proof - PAN Card, Aadhar Card.
- Passport, driving license.
- For proof of address: - Passport, Voter Identity Card.
- Birth certificate.
- Photo
- Car documents
- Three months salary slip.
- 6 months bank statement
- ITR (income tax return)
- Some companies do not offer loans without a driver's license and car insurance copy.
Car Loan Interest Rate
Car lenders charge a number of fees, including interest rates on car loans. Normally, all these charges are at a fixed rate, which makes it easier to repay the loan. Car loan interest rates vary by bank, here is an approximate list of which banks charge you interest on car loans.
|
Bank Name |
Car loan interest rate |
|
Punjab National Bank |
6.65 to 8.75% |
|
Punjab Sindh Bank |
6.80 to 7.90% |
|
Bank Of India |
6.85 to 8.55% |
|
Indian Bank |
from 6.90 to 7.10% |
|
Bank Of Baroda |
7 to 10.25% |
|
Central Bank of India |
from 7 to 7.70% |
|
Bank Of Maharashtra |
from 7.05 to 10.30% |
|
Union Bank Of India |
from 7.15 to 7.50% |
|
State Bank Of India |
7.25 to 7.95% |
|
Punjab National Bank |
6.65 to 8.75% |
Car loan other expenses
- You will also have to pay a processing fee when borrowing, which can range from 0.4 to 1% of the loan amount.
- Even if you repay the loan before the due date, you will still have to pay a fee. It is charged at 5 to 6% and some banks do not charge.
- Some banks also offer part payment facility to repay the loan, in which if you have money, you can repay part of the loan amount, for which some banks charge a fee.
- The borrower cannot repay the loan taken within 6 months.
- You can also repay the car loan before the repayment period at your convenience. This period is usually one to seven years.
Car Loan Online Application
- Go to the official website of the bank you are a customer of or the bank from which you want to get a car loan.
- You have to go to the loan tab on the official website of that bank.
- Then click on Auto Loan option.
- Here you will find the option of auto loan, car loan and two wheeler loan.
- From here you can click on Car Loan.
- You will come across information related to car loan.
- Then you have to click on Apply Now.
- A page will appear in front of you, in which you have to enter your name, email ID, mobile number, captcha code and go to the car.
- The car loan application will come in front of you, in this form you will have to fill in all the details like name, address, proof of income and car loan for which you want, and how much loan is required, term.
- Then submit the form.
- Your application will be submitted, after which the bank officials will contact you.
|
Bank Name |
Application Form |
|
Punjab National Bank |
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|
Punjab Sindh Bank |
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Bank Of India |
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Indian Bank |
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|
Bank Of Baroda |
|
|
Central Bank of India |
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Bank Of Maharashtra |
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|
Union Bank Of India |
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State Bank Of India |
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|
Punjab National Bank |