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    Bangalore Car Loan

    Car loans can give you the means to fulfil your dream of owning a car when you are living in a fast-paced city like Bangalore where you need to constantly be on the go. Having a car gives you the freedom to drive around at your convenience and a car loan can help you buy your dream car. Availing a car loan in Bangalore is quick, hassle-free, and comes at attractive interest rates. If you are a resident of Bangalore and are planning to buy a car, availing a car loan is a good idea.

    Interest Rates Offered by Top Lenders on Car Loans in Bangalore

    Bank Interest rates Minimum income Processing fee
    Axis Bank 9.25% onwards Rs.3,500 to Rs.5,500 Rs.1.8 lakh p.a. to Rs.2.4 lakh p.a.
    State Bank of India 9.30% to 12.45% Nil Rs.2.5 lakh p.a. to Rs.4 lakh p.a.
    HDFC Bank 9.75% p.a. to 10.60% p.a. 0.4% of the loan amount Rs.3 lakh p.a.
    Canara Bank 8.95% to 9.60% 0.25% of the loan amount Rs.3 lakh p.a.
    ICICI Bank 9.30% to 12.85% Rs.3,500 to Rs.8,500 -
    United Bank of India 9.15% onwards 0.59% of the sanctioned loan amount Rs.25,000 per month
    IndusInd Bank 10.65% onwards 0.5% of the loan amount Salaried applicants: Rs.2 lakh to Rs.2.5 lakh p.a.
    Federal Bank 9.20% onwards N/A Rs.20,000 per month
    Punjab National Bank 9.05% onwards Rs.1,000 onwards Rs.20,000 per month
    Bank of Baroda 1-year MCLR + Strategic premium + 0.25% p.a. Rs.1,000 to Rs.2,500 + GST -
     

    How to fetch the Lowest Interest Rates on Car Loans in Bangalore

    Lenders in Bangalore offer attractive interest rates on car loans which may vary from lender to lender but did you know that you can negotiate with the lenders to offer you the lowest interest rates? That is right. Below we give you a list of things that you can do which will help you fetch the best interest rates on car loans.

    • Compare the benefits – Before you pick a particular lender to avail a car loan, ensure that you explore the benefits offered by various lenders on their car loans. Once you have done that, compare the benefits and pick a lender that offers the lowest interest rates. Many banks offer lower interest rates to its existing customers and hence, it is a good idea to check the interest rates offered on car loans by the bank where you hold an account. Some banks may also offer lower interest rates to new customers as part of a promotion and that is why, you should always shop around before picking a lender.
    • Choose a shorter repayment tenure – Many car loan applicants make the mistake of choosing longer repayment tenures as the EMI amount is lower on them. However, opting for a longer repayment tenure may prompt lenders to increase the interest rates on the car loan because it gives an impression of the applicant having a low repayment capacity. Therefore, if you wish to negotiate with your lender for a lower interest rate, choose a shorter repayment tenure.
    • Ensure that you have a good credit score – If you have a credit score of more than 750, your chances of securing a loan is higher. There are some lenders that will offer you a car loan even if your credit score is low but will charge a high interest rate. It is recommended that you check your credit scores regularly and for free on the BankBazaar website under the ‘Free Credit Score’ section. Once you know your credit score and if it is above 750, you can confidently approach and negotiate with the lenders to offer you a car loan at low interest rates.
    • Maintain a low debt-to-income ratio – Lenders consider the debt-to-income ratio of the applicant along with the employment status. Whether the applicant is salaried or self-employed, they should have a steady income and a low debt-to-income ratio to avail a car loan at a lower interest rate. The debt-to-income ratio is a measure of the percentage of the applicant’s income spent on repayment of loans.
     

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    Eligibility for Availing a Car Loan in Bangalore

    The eligibility for availing a car loan in Bangalore may vary from lender to lender but the basic ones have been listed below:

    Criteria Salaried individuals Self-employed individuals
    Age
    • Minimum age: 21 years
    • Maximum age: Between 60 years and 70 years at the time of loan maturity
    • Minimum age: Between 18 years and 21 years
    • Maximum age: Between 65 years and 75 years at the time of loan maturity
    Income Between 2.5 lakh p.a. and Rs.3 lakh p.a. Between Rs.1.8 lakh p.a. and Rs.3 lakh p.a.
    Income Status Should have been continuously employed for 2 years and at least 1 year with the current employer Should have been in the same line of business for at least 2 years
     

    Documents Required

    Individuals applying for a car loan in Bangalore should keep the below-mentioned documents handy:

    • Age proof (PAN Card, Passport, Aadhaar, etc.)
    • Proof of Identity (Aadhaar, Voter’s ID, Passport, Driving License, etc.)
    • Application form filled and duly signed
    • Address Proof (Passport, Aadhaar, Driving License, etc.)
    • Recent bank statements
    • Income proof (Form 16, IT returns)
    • Rate list or proforma invoice

    FAQs

    Can I sell my car before I finish repaying the entire loan?

    No, you will not be able to sell your vehicle before you have repaid your loan. To sell the vehicle, you will need to get a NOC (No-Objection Certificate) from the lender which the lender will provide only if you have foreclosed the loan.

    Do I have to provide any collateral or security while availing a car loan?

    There is no collateral or security that you have to provide while availing a car loan as the lender will consider the vehicle itself as collateral.

    How can I pay the EMI towards my car loan?

    The repayment towards your car loan can be made in three ways – Electronic Clearing Service (ECS), Standing Instruction (SI), and Post-Dated Cheques (PDCs). The first two ways of repayment are recommended as they are quicker and is less prone to errors as compared to the PDCs.

    After I am done repaying my car loan, what is the process to remove the hypothecation from the Registration Certificate (RC)?

    To remove the hypothecation from your vehicle after you have repaid the loan, you need to visit the Regional Transport Office (RTO) and submit the below-mentioned documents:

    • NOC from the RTO and your car insurance provider
    • Original Form 35
    • NOC issued by your car loan lender

    You will also have to pay a fee for removing the hypothecation from your vehicle.

    Can I cancel my car loan after it is sanctioned or disbursed?

    Yes, you can cancel your car loan after its approval or disbursal but a charge of Rs.1,000 will apply. In addition to this, you may also have to pay other charges such as stamp duty charges, interest accumulation, etc.

    GST of 18% is applicable on all banking products and services from the 1st of July, 2017.

     

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