Car Finance

Overview :

Features of Car Finance

• - Banks pay upto 90% of the cost of the new vehicle.
• - In case of used vehicles, banks finance up to a maximum of 85% of the value of the car.
• - Generally public sector banks offer lower rate of interest than the non-banking finance companies.
• - Usually the interest is calculated on a monthly reducing balance.
• - The banks offer a repayment tenure of 12 to 60 months.
• - Few institutions even offer 7 years repayment period.
• - A salaried person can borrow up to 3 times of the annual salary.
• - A self employed individuals can borrow up to 6 times of the annual income.

Documents Required:

• - Application Form
• - Photographs
• - Proof of income of last two years
• - Proof of Residence
• - Proof of identity

Take Note:

• - The income of spouse can be clubbed to increase the loan amount.
• - Terms and conditions for prepayment of the amount need to be clarified before agreement
• - Try to consider taking loan where there is no penalty of prepayment.