If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
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    Car Loan Schemes for Government Employees 2018

    In an effort to serve the citizens of the country, some of the leading banks in India have rolled out special car loan schemes for central and state government employees in the form of lower interest rates, 0% foreclosure, prepayment and processing charges, and up to 100% auto financing. Car loans make up a significant portion of the retail lending business of banks. What's more, leading auto manufacturers like Hyundai and Tata Motors have known to offer special discounts for government employees in the past.

    Following the 7th Pay Commission pay scale revision which affects the income of about 50 lakh central government employees and 58 lakh pensioners, some leading banks and auto manufacturers have rolled out special car loan schemes for government employees and pensioners. There is likely to be a 23.55% increase in allowances, salaries, and pensions of the government employees which will increase the standard of living and lifestyles of these employees. For the purchase of new and used cars of their choice, they can opt for any of the below-listed car loan schemes.

    Here is a list of banks that offer special car loan schemes for government employees in 2018:

    HDFC Bank Car Loan Schemes

    HDFC Bank offers 100% on-road funding to government employees for the purchase of new cars at a 0% foreclosure charge, Rs.999 processing fee, and a loan tenure of up to 84 months. For 0% a foreclosure charge, the employee must furnish his or her government ID card along with the car loan documents to the bank. A 0% foreclosure charge is applicable only after 24 EMI payments on his or her car loan. This special offer from HDFC Bank is valid only on select car models from manufacturers like Maruti, Toyota, Honda, and Hyundai.

    State Bank of India (SBI) Car Loan Schemes

    SBI offers a maximum car loan amount of 48 times the net monthly income of a state or central government employee. The minimum annual income requirement of a government employee aged 21 to 65 years must be Rs.2.5 lakh in order to be eligible for a car loan from SBI. Government employees must submit the following documents along with a duly-filled and signed car loan application form to the bank:

    • Last 6 months' bank account statements and last 2 years' IT returns or Form 16 for income proof.
    • 2 passport-size photographs for identity proof.
    • PAN Card, Passport, Voters ID Card and Driving License for identity proof and age proof.
    • Ration card and utility bills like telephone or electricity bills for address proof.

    With an SBI car loan, he or she can purchase new passenger cars, Sports Utility Vehicles (SUVs), and Multi-Utility Vehicles (MUVs). At SBI, a government employee can get a car loan of up to 85% of the on-road price at an interest rate of 8.7% to 9.2% p.a. for a maximum loan tenure of 7 years at 0% prepayment and foreclosure charges. For a car loan amount of up to Rs.6 lakh, a processing fee of Rs.1,000 plus GST is waived off.

    Punjab National Bank (PNB) Car Loan Schemes

    PNB offers car loan to government employees at attractive terms for the purchase of a new or used car. PNB Pride Car Loan is available for permanent central and state government employees, defence personnel, and paramilitary forces. PNB Pride Car Loan for Government Employees can be used to purchase a new car, SUV, MUV, jeep or van. It can also be used to purchase a used/pre-owned car, jeep, SUV, van or MUV that is not more than 3 years old.

    At PNB, he or she can avail a car loan amount of up to 25 times of the net monthly income. The minimum net monthly income requirement of a government employee is Rs.20,000. The floating interest rate for PNB Pride Car Loan is MCLR + 0.60% p.a. while the fixed interest rate is MCLR + 0.95% p.a. There is no prepayment fee charged for car loans with a floating interest rate whereas for car loans with a fixed interest rate, there is 2% fee charged on the prepayment amount. The maximum loan tenure for a new car loan is 84 months and for a used car loan, it is 60 months. The processing fee for PNB Pride Car Loan is waived off.

    How to apply for a car loan?

    One can apply for a car loan via the online or offline method. Before applying for a car loan, take the time to compare various car loan offers on a reliable third-party comparison website so as to get a good deal. Choose one with a low interest rate, zero processing fee, a suitable loan tenure, and flexible repayment options. In the case of the online method, download the car loan application form from the bank website, fill it up, and submit it along with the necessary identity, age, income, and address proofs to the bank. The bank will verify the details furnished by the applicant and process the loan application.

    Upon car loan approval, the loan amount will be disbursed to the applicant’s bank account in a matter of few hours. In the case of the offline method, visit the nearest bank branch. Applying for a car loan online is easier. It can be done from the comfort of one’s home or office with just a few clicks of the mouse. Furthermore, before applying for a car loan online, one can check his or her car loan eligibility on the bank website so as to avoid rejection. Multiple loan rejections can have a negative effect on one’s credit score. A good credit score of 750 or above is required to get low-interest rate unsecured and secured loans.

    Car Loan EMI

    The bank website will have an online car loan EMI calculator which can be used for free to choose an affordable loan amount, a suitable loan tenure and also to find out how much a car loan will cost the borrower on a monthly basis. The tool can be used any number of times for free of cost. It is easy and simple to use. Input the car loan amount, loan tenure, interest rate, and processing fee into the tool and click on the ‘calculate’ button. Instant and accurate results of the EMI calculations will be displayed in the form of an amortisation table. The table represents the periodic car loan repayment schedule.

    Depending on the results, the car loan amount or loan tenure can be adjusted. It is advisable to maintain a low debt-to-income ratio wherein one’s EMI payments don’t exceed more than 50% of his or her income. A high debt-to-income ratio can result in skipped or delayed EMI payments. As the car serves as collateral, if the borrower defaults on his or her car loan, the bank has the right to repossess the car and put it up for auction to make up for the outstanding dues. Banks allow borrowers to prepay a part or whole of the loan amount after 6 to 12 EMI payments. Car loan EMI calculations can help decide whether it is wise to make part or full prepayment.

    Car Loan Reviews

    • ICICI Bank Car Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have applied for the car loan with the ICICI BANK and i have been using it since from last more than 4 years. The rate of interest was nominal with this loan when compare to the other loans. It is a good loan to use also they provided the loan amount which was good.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • SBI Car Loan
      "Very good customer service"
      0.5 5.0/5 "Blown Away!"
      I taken my New car in Maruti Swift Desire with the help of SBI . Maruti showroom has tie up with the SBI , so immediately approved my loan . It is very fast response from SBI executive . They given me the correct interest rate . Now another 12 months EMI is pending .
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • HDFC Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with HDFC bank previously,they gave me loan amount based on the vehicle price,and the rate of interest they have charged me was nominal,and even they have charged me processing fee which was okay,now i have closed this loan.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Mar 23, 2019
    • Kotak Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I took a Car loan from the KOTAK MAHINDRA BANK . Their rates are much cheaper that other companies. The application process was easy and hassle free. I never had any issues with their services. I use to pay my EMI on time . Customer support is good here .
      Was this review helpful? 0
      , thiruvananthapuram
      Reviewed on Mar 23, 2019
    • SBI Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I took car loan with State bank of India,The loan amount was sufficient,like based on my requirement they gave loan,and i have purchased Renault car , the rate of interest they have charged me was nominal,it is floating in nature,like based on the market value it use to change,they have not charged any processing fee, still this loan is running.
      Was this review helpful? 0
      , kolkata
      Reviewed on Mar 23, 2019
    • Kotak Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      The rate of interest was high with KOTAK MAHINDRA BANK , and there was processing fee for my car loan and it is nominal .The documentation procedure went smooth.I have chosen car loan through KOTAK MAHINDRA BANK . The customer service and response was better.
      Was this review helpful? 1
      , chennai
      Reviewed on Mar 23, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      The loan amount was satisfactory, I pay an EMI on time. The tenure period is for good . Overall it was a very good loan experience e with the HDFC .It was a super fast loan experience. I took a car Loan from the HDFC BANK . The whole loan process was easy and super fast.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 23, 2019
    • ICICI Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding car loan with ICICI bank ,Their service was prompt,and the loan amount which they have given me was sufficient based on the vehicle they have given me loan, and the rate of interest they have charged me was nominal,and even they have charged me processing fee that too was nominal,and still this loan is running,so far i have not faced any issue.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 23, 2019
    • review Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My experience was good I have taken four wheeler loan from TVS credit my loan amount is 3Lack and 3 years tenure and rate of interested is 8.65% only 3 rest emi I have then finished this loan and their response is good I am satisfied with TVS credit limit.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Mar 23, 2019
    • SBI Car Loan
      "Good Experience"
      0.5 4.0/5 "Great!"
      I just submitted my papers for the SBI card loan through the consultancy, they do have one point of contact. But interest is really reasonable, the loan process was very hassle fee and the amazing part was zero processing fee on my loan disbursement.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 22, 2019
    • Kotak Car Loan
      "Process should be simple"
      0.5 3.0/5 "Satisfactory"
      I had car loan from Kotak Mahindra very long back, the process was lengthy and it has hassle documentation process. I was surprised regarding the way of loan, the interest and charges are good, however on road price of the card was approved on time.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 22, 2019
    • ICICI Bank Car Loan
      "Very Good Service"
      0.5 4.5/5 "Excellent!"
      It was pretty good experience i had in getting my Car loan from them where the process had been quite good and the loan amount was sufficient as well. The interest rate with them has been nominal and the interest rate with them has been pretty good as well.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 22, 2019
    • ICICI Bank Car Loan
      "Excellent service"
      0.5 4.0/5 "Great!"
      I have taken Car Loan through ICICI Bank since got the information directly through Maruti showroom they have recommended ICCI Bank Car Loan . The car model is Maruti eeco .I have got the loan amount on time.The agent clearly explained the process .The rate if interest was high and also processing is high too.Not yet faced any issues on submitting the documents as well .The Overall Service is good as well.
      Was this review helpful? 1
      , new delhi
      Reviewed on Mar 22, 2019
    • SBI Car Loan
      "Need more customer support for good relationship"
      0.5 2.0/5 "Expected more"
      I am not at all happy with the SBi customer service . SBI never respect the customers . From the beginning itself , I am not okay with the process and Bank . My showroom has delivered the car very instantly after the sanction of loan . I am happy with the interest rate .
      Was this review helpful? 0
      , mysore
      Reviewed on Mar 22, 2019
    • review Car Loan
      "Need to improvre services"
      0.5 1.0/5 "Really Bad"
      My car loan has been taken with SRIRAM FINANCE , i am giving 1 rating to this financial institution because o their services which is not so good . The tenure period is 4 year . They charge very high rate of interest with this bank . For everything thing i have to visit the office .
      Was this review helpful? 1
      , mumbai
      Reviewed on Mar 20, 2019
    • IndusInd Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this loan almost seven years back and the process in getting this loan was pretty much easy. The loan amount has been good and the interest rate with them has been nominal as well. There has not been any additional charges made by them and there was a help from their customer support team as well.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 20, 2019
    • SBI Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      I had a car loan it was closed now with State Bank of India, I got the loan with the lower interest. The service was really nice, infact the rate of interest is lesser. From the bank I got the NOC letter after closing my car loan, overall it was good.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 20, 2019
    • Oriental Bank of Commerce Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this loan a while back and the process in getting this loan was quite easy. They had offered me with a lesser interest rate and the charges which they had made has been pretty less as well. Overall their customer support has also been helpful at times.
      Was this review helpful? 0
      , chandigarh
      Reviewed on Mar 20, 2019
    • Capital First Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I got my car loan from Capital First and its been 3 months. I have purchased i20 new car and they have provided me 85% funding. The interest rate is okay and the charges has been informed, after getting confirmation from me then loan amount was credited to account. The tenure is 36months.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 19, 2019
    • Reliance Commercial Finance Car Loan
      "Average "
      0.5 2.5/5 "Just OK"
      I have taken a car loan in Reliance Finance and it was suggested by the dealer. I have purchased a seconded car and the loan amount is 4.5L which was sufficient. The interest rate is high compared to others also processing fee is applicable. The customer service is not good and they need to improve on.
      Was this review helpful? 1
      , pune
      Reviewed on Mar 19, 2019
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