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  • Ahmedabad Car Loan

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  • Looking for the most affordable car loans in Ahmedabad? You’ve come to the right place. Compare more than 25 leading banks and NBFCs on BankBazaar. Everything from interest rates, processing fees, eligibility criteria, approvals and quotes is here. Find out which banks have special offers for women and which have the lowest interest rates.
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    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.

    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)
     

    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.
     

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    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:

    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
     

    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.

    FAQs

    Is it mandatory for me to take a loan from the bank I currently have an account with?

    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.

    Can I get a vehicle loan for the full value of the car I want to buy?

    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.

    What tenure should I choose for repaying my loan?

    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.

    Do I have to provide collateral for an auto loan?

    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.

    Can I sell my car before I pay off my loan?

    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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