Buying a Car is a big deal, as Lakhs of rupees must be saved from your monthly Earnings, to get your desired car and provide comfort to your Family during traveling or outings. You will be researching a lot about various types of Cars in the Market and have to choose which car is best suitable according to what all the features it has, that can match your requirement. It will be one of the significant purchases, but you also have to think about how to finance your car.
What is car Loan?
A car loan is a kind of auto loan where an individual borrows the amount from Lender or Bank to purchase a car. An individual agrees to pay back the loan amount to the bank in the form of monthly payments, along with the car loan rate of interest that will get calculated on an annual basis.
Most of the banks offer a similar loan, and if applying to get a Car loan, it is mandatory that you have to get a minimum of 1 Year Loan and you have to clear out your loan within 5-years in maximum. Some banks can provide an option to extend till 7-years on request.
While getting a loan, the bank will create a hypothecation charge on the vehicle, and the car can get hypothecated. The hypothecation charge could not get removed until you repay the total balance amount of the loan. If you make default or failure to pay or stop paying EMIs on time, then the bank has full authority to seize your vehicle
Eligibility to get Car Loan:
The Scenario of Banking in the current time has become very competitive, where many banks started offering better opportunities in competition with other banks. The below is an eligibility criterion where most of the banks do have.
For Salaried Employees:
Salaried (min 23 years): If you are age is 23 years, salaried and, working in an Elite organization, then the bank will allow to apply for a Car loan.
Salaried (min 25 years): If you are age is 25 years, salaried and, working in a start-up or non-elite organization, then the bank will allow you to apply for a Car loan.
Salaried (Max 58 Years): The bank specifies that, until the age of 58, the car loan should get cleared if the retirement is 60-years. So you are eligible to buy Car Loan if you aged around a maximum of 53-years.
Self-Employed (min 28 years): If you are self-employed or have your own business, then in this current scenario, the minimum age should be 28 years to apply for a car loan.
Self-Employed (Max 65 Years): The bank specifies that, until the age of 65, the car loan should get cleared for Self-employed.
Most of the Banks like SBI or ICICI Bank offers 80%-85% off on Car’s Ex-showroom price and also on On-road price. So an individual must have to check different banks and their loan facilities before getting a car loan.
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