Ahmedabad Car Loan

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.

Lowest Car Loan Interest Rates in Ahmedabad

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.

Tips to get a Car Loan in Ahmedabad with a Low Interest Rate

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.

• Your income level: How much you earn every month helps lenders get an idea of how much you will be able to repay. While most lenders require you to have a minimum income, having a higher income can help you get better interest rates and loan conditions. Usually, the more you earn, the lower the interest rate you get. Also, a higher level of income indicates that you will not have any trouble with repaying what you borrow, meaning, the lender bears lesser risk.
• Current debt scenario: How much debt you currently are in makes a difference to the interest rate you get. Your debt-to-income ratio shows lenders how much of your current monthly income goes towards repaying loans that you have already taken. If this ratio is high, it means that you may not be able to manage paying another loan, i.e. your car loan, in this case. Or you may be given high interest rates. So, if your debt-to-income ratio is high, work on lowering it first.
• Your credit score matters: Your credit score plays an important role in determining your eligibility for a vehicle loan. It is an indication of how you have been handling your loans and credit card bills, how much credit you have been utilising, etc. till now. If you’ve been wise and prudent with your finances, you should have a good score. A good credit rating can help you get good interest rates. So, if you want to get better rates and loan terms, work on improving your credit score first.
• Pay a larger down payment: The down payment is the amount of money you have to bring in on your own. The lender will provide the rest. If you pay a considerable sum as a down payment (say about 30% of the value of the car), the lender may give you a lower rate of interest. But do keep in mind that if this is going to eat into your savings, it’s better not to blow all of it on the down payment.
• Choose your tenure wisely: Your tenure is an important part of your EMI. It determines how long your loan will go on for. A longer tenure results in lower interest rates and lower monthly repayments. But it also means that you will be paying a larger amount of interest in the long run. It also keeps you in debt for a long time. You should choose a tenure that keeps your interest payments and EMIs at an affordable level.
• Visit loan aggregators: An online loan aggregator is a good way to find the loan you want within a few minutes. Instead of spending hours or days finding out various loan options from all the lenders out there, you can get it done quickly through a loan aggregator. By providing some of your basic details such as your monthly income and area of residence, you will get an entire list of all the auto loans you’re eligible for. This way you can easily find out what the cheapest options in Ahmedabad are.
• Negotiation is important: Sometimes negotiating with your lender can get you results like nothing else can. In order to do this well, you need to present your fact well. For example, if you’re expecting a raise in your income in the coming months, tell this to the bank. If they consider this while processing your application, it may help you get a lower rate of interest.

What you need to Apply for a Car Loan in Ahmedabad

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:

Documents Required

• KYC documents - proofs of identification, address, and age
• Photographs
• Verified and authorised bank statements
• Income proof (income tax returns for the previous 2 years, recent salary slips, etc.)
• Proof of ownership of business, partnership deed, memorandum of association and/or resolution of board of directors (for self-employed individuals)

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.

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