Car Loan Process in India - A Complete Guide
10 Feb 2023
Table of Content
How to Apply for a Car Loan
That expensive car you have your eyes on is now a possibility more than ever. You can get a loan from banks and other financial institutions to fund it. Not long ago, having a home of your own or a family car used to be considered luxurious most people found themselves unable to afford. But with the variety of loan products on offer these days, one does not have to have unfulfilled dreams anymore.
Are you planning to buy yourself a new ride? You can get up to 90% of the on-road price of the car of your choice financed with a Bank of Baroda Car Loan . Here's how to apply for a car loan:
Car Loan Application Process
Now own your car with a simple car loan application to the Bank of Baroda. Car loans are available for salaried and self-employed individuals. Borrowers must be at least 21 years and loan repayment should be made before their 70th year. Check the documents required for car loan with low competitive loan rates. Apply online from the website with attention to eligibility and CIBIL score. The loan application is verified and processed, and the loan is disbursed quite simply.
- Form fill up: Download or fill online Bank of Baroda car loan form. Fill in capital letters personal details, individual and non-individual information, proposed loan details, bank details, and references, both professional and business. Add all required documents, and check eligibility. Before filling out the form, make use of the car loan EMI calculator to determine the loan amount with tenure. Submit the form.
- Document verification: Before the car loan meets with approval, the bank verifies all documents sent by the applicant. With digital submission, documents are easily verified by the bank. The bank ensures whether the individual is eligible for the finance. To determine the repayment capacity of the borrower, it verifies personal details, CIBIL score, and income proof. The bank reduces its risk through the verification procedure. Based on these eligibility criteria, a loan is approved.
- Car Loan approval: The car loan approval is based on eligibility after the documents are verified. Applicants must submit all required documents correctly for loan sanction. Should be 21 years at least to avail of the loan and the loan repayment period should not exceed 70. Should be an Indian citizen, salaried or self-employed. After all these criteria are met, the bank approves the loan. The disbursement of the loan is made in the applicant’s bank account
- Car Loan Disbursal: Once the loan is approved by the bank after the documents are verified, the processing takes a few seconds. If the applicant meets the eligibility benchmark, the bank approves the loan instantly. To ensure a speedy process check the eligibility factors and adhere to them carefully. After the loan is approved by the bank, the funds are transferred directly to the applicant’s account. The car acts as collateral for the loan.
Tips to Get Instant Car Loan
If you want your car loan to be approved, you should make sure that you have the following pointers in place. These will improve your chances for an instant loan eligibility.
- Ensure that your CIBIL score is over 701
- Repay your debts timely
- Know the eligibility criteria
- Submit all the documents currently
- Arrange for a down payment
- Prepare a proper repayment plan with help from the online EMI Calculator
Factor Affecting Your Car Loan
Car loans are affected by various factors. Applicants must ensure that car loan eligibility criteria are read carefully and use the online EMI calculator to determine affordability.
- CIBIL sore
- Interest rate offered by the bank
- Loan tenure
- Loan amount
- Prepayment, foreclosure charges
- Processing fee
- Income level
- Loan to Value (LTV) ratio
- Down payment amount
- Car model and age
- Improper document submission
Things to Keep in Mind before Taking a Car Loan
Car loans, just like any loan, require planning, as you want to ensure that you can pay them off comfortably without defaults. So, before you decide on taking a loan keep these in mind.
Budget:have a budget and try not to exceed it. You know your affordability, choose a car that falls within your capacity. What you should keep in mind are - your monthly expenses, and the extra expenses that you will incur once your car loan starts. This includes maintenance costs, car registration, insurance, road tax, and extra accessories that you wish to add to your car. If you can drive, you save on the driver's cost, otherwise, that must be added to the monthly expenses.
Repayment:Once you have calculated your expenses, planning the amount of loan you can afford gets easy. Plan monthly instalment payback amounts too. Use the online automated loan calculator to calculate the EMI that fits you best.
Loan Approval:Remember this is an important stage, for unless the bank approves your loan you are not eligible for the same.
Once you fit into the eligibility, you can proceed with the right documents.
Why Opt for BOB Car Loan
Bank of Baroda finances up to 75% - 100% of new and used car loans at competitive rates. The car loan tenure is for a maximum of 7 years, enabling easy payment. The bank offers up to Rs 5 crore of loan. Applicants can make pre-payments and foreclosures without any extra charges. The processing time is minimal, and the bank works with minimal documentation. You can apply for car loans online from the Bank of Baroda.
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Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The Different Types of Loans Available in India
Loans are essentially capital borrowed from a bank or a financial institution. These institutions charge interest against lending money for a certain definite period. For some, bank loans are a way to meet emergencies while for others, loans act as a catalyst for growth. It all depends upon the purpose and the type of loans that the borrowers have availed. Various types of bank loans are available that a borrower can access. Here are the different types of loans that borrowers can avail of from lending institutions.
A Complete Guide to Car Loan
Buying a car is a dream for all. Looking at cars on road is one thing, but owning the car you desire, is a dream come true. Giving you the freedom to move as you want, a car is a social asset that leverages your position in society. Don't spend your savings on purchasing a car. Waiting till retirement to buy a car from your retirement fund is a bad choice. Why wait that long when you have the benefit of car loans? Buy your dream car while you are still young. Make full use of it with your family and pay it off with feasible loan EMIs. Sounds interesting? So let us understand what is a car loan and all that you need to know about loans in greater detail.
