Own a Car of Your Choice With Bank Loans

Loans offer an opportunity for everyone eligible to buy the dream car. With the increasing demand of cars in the market, a car loan is an ideal way to buy a vehicle of your choice without draining your personal financial resources.

While visiting the nearest car retailer, you saw a car of your dreams. Now, all you want is to buy the vehicle and drive it away to your parkway. But, what about the money which you need for a vehicle of your choice? If that is the question which is haunting you then visit the nearest bank which offers loans for people like you. But before you avail a loan for yourself, always check with the banks about the loan rates and compare it online with competitive banks. Online car loans study helps in zeroing a deal which is favorable for you and makes sure you do not pay more than you have to.

General Features

Check the following features which will allow you to understand the different aspects associated with car loans.

• Loan amount covers 90 percent of the cost if the car is new. But if it is a used car then the amount provided is 80 percent.

• For salaried employees, the amount provided is 3 times the annual salary but the rate increases for self-employed professionals and stands at 6 times the annual income.

• Apply for a loan from a bank where you have a bank account, most banks prefer such customers.

• There is a fixed time period and the premiums are decided accordingly. But in case you want to settle it before the closing date, you need to pay a penalty.

• Rate of interest differs from bank to bank, hence check and compare it before applying with any bank.

Eligibility Criterion

Before you apply for a loan with a bank, check if you are eligible or not. Banks have a set of conditions which need to be fulfilled by the applicant. Though these might differ from bank to bank in India, here are some general criteria which are applicable for all bank loans:

• The applicant must be 21 years of age and more.

• The loan applicant must not cross 58 years when the loan matures.

• He or she must be employed for minimum one year in the current job.

• Most Indian banks do not give a loan amount without checking the annual net income which must be INR 100,000.

When applying for loans, the applicant must submit documents proving their eligibility. The list of mandatory documents include an Identity proof which can either be a Passport, PAN card, Voters Card or a Driving License. You also need to submit an Income proof which includes salary slips and Form 16 for employed individuals. But if you are self-employed or own a business the IT returns foe two financial years is required. Other than this, an address proof is mandatory. You can submit any government document which has your present address inscribed such as Ration Card, Driving License, Voter ID card, Passport, Telephone Bill, and Electricity Bill. Lastly, a bank statement for the last six months needs to be submitted. This has to be submitted even if this is the bank where you have a bank account.


Article Source: Abitha Deepak