• Car Loan in Bhubaneswar

    Car Loan in Bhubaneswar – Overview

    Bhubaneswar is an emerging education and information technology hub. It is one of the fastest developing cities in India and also one of the first planned cities in India, along with Chandigarh and Jamshedpur. A developing city demand that its citizens have the freedom to move around at their own will which is why owning a car is vital. When it comes to purchasing a car, taking a car loan is a good idea since you do not need to shell out a huge sum of money at once. Instead, you can take a car loan and repay it in easy equated monthly instalments (EMIs).

    If you are living in Bhubaneswar, you can avail a car loan from top lenders in the country who offer attractive interest rates on these loans, along with other benefits.

    Interest Rate Offered by Top Lenders in Bhubaneswar

    Name of the Bank Interest Rate Processing Fee
    State Bank of India 8.80% to 12.05% Nil
    ICICI Bank 9.30% to 12.85% Rs.3,500 to Rs.8,500
    Axis Bank 9.05% to 11.30% Rs.3,500 to Rs.5,500
    HDFC Bank 9.50% to 10.25% Rs.3,000 to Rs.10,000
    IDBI Bank 9.20% to 9.90% -
    Canara Bank 8.70% to 11.30% Rs.1,000 to Rs.5,000
    Allahabad Bank 8.60% to 10.85% Up to Rs.8,696
    Federal Bank 9.25% Rs.1,500 to Rs.2,500
    Indian Bank 9.10% Up to Rs.10,236
    Andhra Bank 8.80% Rs.1,000 to Rs.25,000

    How to Fetch Lower Interest Rates in Bhubaneswar

    • Keep your credit score above 750 – A credit score above 750 is an indication of your good repayment history and hence, banks will be confident to lend to you. If you have a credit score above 800, your chances of securing a car at lower interest rates are higher. To maintain a healthy credit score, you should pay all your debts on time and check your credit score regularly.
    • Maintain a low debt-to-income ratio – Your debt-to-income ratio is a percentage of your gross monthly income that goes in paying your monthly debts. Lenders would prefer lending to you and at lower interest rates, if your debt-to-income ratio is low.
    • Explore all options and compare them – Exploring the various car loan options available in the market will help you compare the benefits offered by various lenders and help you in making an informed decision. Once you compare the benefits, you can pick the lender that offers the lowest interest rates.
    • Make a higher down payment – Making a higher down payment will reduce the amount you need to avail as a car loan. If you avail a loan for a lower amount, chances are that the lender will offer you a lower interest rate as the loan will be paid off quicker.
    • Negotiate with the lender – Many lenders allow you to negotiate on the interest rates based on your credit score, your annual income, loan tenure etc. So, if you wish to score a car loan with a low interest rate, you should negotiate with the lender. Start with your existing lender before you approach other lenders. Since your existing lender has an idea of your transaction history, you may end up in getting a lower interest rate on your car loan.

    Eligibility for Availing a Car Loan in Bhubaneswar

    Different lenders may have different eligibility criteria for a car loan but the generic ones have been listed below:

    Who Can Avail Salaried, self-employed individuals and professionals of partnership firms, private and public limited companies, and sole proprietorships
    Minimum Age 21 years
    Maximum Age
    • Salaried – 60 years at the end of the loan tenure
    • Self-employed – 65 years at the end of the loan tenure
    Minimum Annual Income Rs.3 lakh
    Business or Job Stability
    • Salaried – Worked for at least 2 years out of which 1 year should be with the current employer
    • Self-employed – Should be in the same line of business for at least 2 years
    Other Requirements Should have a telephone/mobile connection

    Documents Required

    The documents that you must furnish with your car loan application may vary from lender to lender, but the below-mentioned documents are the basic ones.

    Documents Salaried Self-employed
    Proof of Identity Passport/PAN Card/Aadhar Card/Driving License/ Voter’s ID PAN Card/ Aadhaar Card/ Passport/Voter’s ID/Driving License
    Address Proof Ration Card/ Aadhar Card/ Passport/ Driving License/Telephone Bill/Electricity Bill/Life Insurance Policy Ration Card/ Aadhar Card/ Passport/ Driving License/Telephone Bill/Electricity Bill/Life Insurance Policy/ Sales Tax Certificate
    Income Proof Form 16 and latest salary slips Latest Income Tax Returns/Audited Balance Sheet/Profit and Loss Account/
    Others Bank statement for the last 6 months Bank statement for the last 6 months

    FAQs on Car Loans in Bhubaneswar

    1. I am currently residing in Bhubaneswar. How do I know if I am eligible for a car loan?

      2. Answer: The basic eligibility criteria that you need to fulfil is given in the sections above. You can go through the list and check if you fulfil the criteria. Additionally, you can go through the eligibility criteria listed on the website of the lender or visit its nearest branch to know your eligibility.

    2. Do I have to option to pay off my loan before the end of the loan tenure?

      3. Answer: Yes, you can foreclose your loan before your loan tenure ends but you may be charged a penalty fee, depending on the lender. However, there are some banks which do not charge any foreclosure penalty. ICICI Bank is one such bank that does not charge any penalty on foreclosure.

    3. How much EMI do I need to pay to buy a car in Bhubaneswar?

      4. Answer: The EMI amount will depend on a lot of factors such as loan tenure, amount, interest rate, etc. If you wish to calculate the EMI amount you need to pay towards your car loan, you can use the EMI Calculator tool. You will need to enter the loan amount, tenure, and interest rate on the tool after which the EMI amount will be displayed to you.

    4. Do I have to provide any security to avail a car loan in Bhubaneswar?

      5. Answer: No, you do not have to provide any security or collateral to avail a car loan in Bhubaneswar as the car will be hypothecated to bank. In case you default on the loan, the lender will have the authority to seize your vehicle and auction it to recover the outstanding amount.

    5. Apart from the processing fee, are there any other charges associated with my car loan?

      6. Answer: There are various charges that are associated with a car loan which will depend on the lender. Some of the charges that you may have to incur on your car loan are documentation charges, stamp duty charges, duplicate statement issuance charges, cheque swap charges, loan cancellation charges, etc.

     

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