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Car loans
India has seen an advent of many new cars in the past few years. You may love to own your dream car but may not be able to finance it. Many financial institutions come to your rescue. Major institutions like ICICI, IDBI Bank, American Express Bank, Amro bank, ANZ Grindlays bank, Citibank, Cholamandalam are the major lenders. The interest rate charged by these institutions basically depend on the tenure and the car model that a person selects. The competition is now so much that some institutions even do not have a loan-processing fee. If all the formalities are satisfied the loan will be disbursed within one week.
A few institutions also give loans for purchase of used cars. The amount financed by institutions/banks is normally limited to 80-85 per cent (maximum) and the remaining is to be borne by the purchaser. The interest rate charged by the Institutions/banks on the loan amount is usually distributed in the Equated monthly installments (EMI's). EMI’s will be calculated based on the loan amount for ex. Rs. 8,000 per lakh. Interest rate on loan will vary depending upon the repayment period of the loan. While the maximum repayment period allowed by most of institutions/banks is 60 months, minimum is 12 months. However, if the buyer wants to repay full amount during the period, he/she may be entitled to get a discount.
The financing institutions/banks prescribe the eligibility criteria for availing the loan (vary for salaried and self-employed). Since Car loan is covered under the one by six scheme, the buyer should have filed his Income Tax return in the previous financial year or should have an income of Rs. 60,000 per annum. Car loans include loans for multi utility vehicles like Mahindra Armada, Maruti Gypsy etc.,
For more details log into www.carstreet.com .
Documents required for salaried people
1. Latest salary slip or Form 16.
2. Proof of address.
3. Proof of identity.
4. One photograph.
Documents required for Self-employed people
1. I-T returns for the last 2 years.
2. Financial statements of the business.
3. Proof of address.
4. Photograph with proof of identity.
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