Buying a car can be an uphill task, especially if you don’t have the funds to get the one you’ve got your eyes on. This is where car loan come into the picture. If you’re in Ahmedabad and are looking to get a car, you can check out all the car loan options available in the city.There are banks as well as NBFCs (Non-Banking Financial Companies) that offer such loans. Some of these lenders include Bank of India, Punjab National Bank, State Bank of India, IDBI Bank, and more.
We’ve put together a list of some of the most popular lenders in Ahmedabad along with what you need to keep in mind when applying for a car loan here. Read on to find out more.
The table given below gives you details related to some of the well-known banks in the city. Along with the interest rates charged by them, we’ve also given you the processing fee they charge and how much income you must earn to be eligible to apply for these loans.
| Bank | Interest rates | Minimum income | Processing fee |
|---|---|---|---|
| Bank of India | 9.25% p.a. | Depends on the quantum of loan applied for | For new cars – Rs.500 for each application For used cars – 1% of the loan amount subject to a minimum of Rs.500 and a maximum of Rs.10,000 |
| State Bank of India | New car – 9.30% p.a. to 9.80% p.a. Used car – 10.75% p.a. to 12.05% p.a. | Rs.20,833.33 per month | For loans of up to Rs.6 lakh – Rs.1,000 + GST |
| Punjab National Bank | Women borrowers –9.05% p.a. Other borrowers - 9.05% to 9.50% p.a. Fixed rate – 9.40% p.a. | Rs.20,000 per month | For loans up to Rs.6 lakh – Rs.1,000 For loans above Rs.6 lakh – Rs.1,500 |
| IDBI Bank | 9.10% p.a. | Rs.20,000 per month | Rs.1,000 + GST |
| Axis Bank | New car – 8.60% p.a. to 11.50% p.a. Used car – 15% p.a. to 17% p.a. | Rs.20,000 per month | For new car – Rs.3,500 to Rs.5,500 For used car – 1% of the loan amount or Rs.6,000, whichever is lower |
| The Kalupur Commercial Co-Op Bank Ltd | 8.95% p.a. to 9.20% p.a. | - | Up to Rs.5 lakh – Nil Rs.5 lakh to Rs. 10 lakh – Rs.1,000 + GST Above Rs.10 lakh – Rs.1,500 + GST |
| Corporation Bank | 8.90% p.a. to 11.25% p.a. | - | Personal vehicles – 1% of the loan amount subject to a minimum of Rs.1,000 Commercial vehicles – 0.75% of the loan amount subject to a minimum of Rs.2,000 |
| Cosmos Co-operative Bank Ltd | 8.25% p.a. to 8.75% p.a. | - | Up to Rs.10 Lakh – 0.50% of loan amount + taxes Above Rs.10 Lakh – 0.40% of loan amount + taxes |
| Magma Fincorp | 12% p.a. to 16% p.a. | Rs.12,500 per month | Up to Rs.2.50 lakh – Rs.3,500 From Rs.2.51 lakh to Rs.5 lakh – Rs.4,050 Above Rs.5 lakh – Rs.4,625 |
| HDFC Bank | New car – 8.85% p.a. to 11.60% p.a. Used car – 13.75% p.a. to 16% p.a. | Rs.20,833.33? per month | New car - 0.4% of the loan amount (minimum Rs.3,000 & maximum Rs.10,000) Used car - 1.5% of the loan amount (minimum Rs.2,500 & maximum Rs.5,000) |
The interest rate you get in one city may not be the same as the ones you get in other cities. In any case, when you’re applying for an automobile loan in Ahmedabad, you need to make sure that you apply for one that charges you a lower rate of interest.
The interest rate that your lender charges you depends on a few factors. Let’s take a look at what these are. Based on this, we’re giving you a few tips on how you can get better interest rates for your vehicle loan.
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Before you apply for a vehicle loan, you need to remember that there are certain qualifying criteria that most lenders have. While this may be different for different lenders, there are a few that are common among all of them.
If you don’t fulfil them, your loan application will be rejected. The following table gives you the general eligibility criteria that most lenders require you to qualify for:
| Criteria | Salaried individuals | Self-employed individuals |
|---|---|---|
| Age | Minimum 21 years old | Minimum 21 years old |
| Income | Minimum income – Rs.20,000/month | As required by the lender. Usually it’s equal to that of salaried employees. |
| Income stability/experience | 1 year of employment in the current establishment | Business stability for at least 3 years |
Ahmedabad is located in the state of Gujarat. It is the 5th largest city in the country and is also one of the fastest growing cities in the world. Over the years, it has grown by leaps and bounds and is now a major centre for education, information technology, industries, art, business, culture, and music.
Given its enthusiasm to keep up with modern trends and styles, this is very much a modern city with various banking options as well. Owning a car here is not too difficult given that there are tons of loan options available. Simply keep the points given above in mind and you may be able to get a pocket-friendly vehicle loan in Ahmedabad.
No, it is not mandatory for you to take your vehicle loan from the bank in which you currently have an account. You are free to take a loan from any lender, even if you don’t have an account with them. However, taking a loan from a lender with whom you have an account can get you certain special privileges which may prove to be beneficial.
No, lenders usually will not finance the full value of the car you want to buy. You can get financing for about 80% to 90% of the value of the vehicle. The rest will have to be brought in by you in the form of down payment. Remember that the higher the amount of down payment you bring, the better the interest rates you may get from your lender.
There is no fixed tenure for repaying your auto loan. Most lenders will allow you to choose between 1 to 7 years for repaying the money you borrow. You should choose a tenure that gives you an affordable EMI. Shorter tenures will have higher EMIs while longer ones will have higher EMIs. Your aim should be to pay off the loan at the earliest without straining your monthly budget. In other words, your EMI should be affordable. So, choose a tenure accordingly.
Yes. No, you don’t have to provide collateral when you apply for a car loan. The car itself will serve as collateral. This means that if you repeatedly don’t repay the lender on time, they have every right to possess your vehicle and settle the loans they incur.
No, you cannot. No lender will allow you to sell a car on which the loan has still not been fully repaid. You can sell your car only after you fully repay the loan either by foreclosing it or letting it run through the entire tenure.
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