• Chandigarh Car Loan

    In case you live in Chandigarh and want to buy a car, a car loan can be availed from various lenders. Car loans are offered at attractive interest rates in Chandigarh. The repayment tenure of the car loan may range between 12 months and 84 months.
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    Car Loan in Chandigarh – Overview

    Chandigarh is the capital of Haryana and Punjab. The city is unique as it is neither a part Punjab nor Haryana. Chandigarh is known globally for its urban design and architecture. According to a study made by the national government, Chandigarh is one of the cleanest cities in India.

    Unlike earlier, it is very simple for an individual to own his/her dream car. Loans play a big role in financing the purchase of a car. Almost all private and national banks offer car loans in Chandigarh. Apart from banks, Non-Banking Financial Companies (NBFCs) also provide car loans. During the festive season, various offers are provided when buying a car on a loan.

    Interest Rate Offered by Top Lenders in Chandigarh

    Bank Interest Rate Processing Fee
    Andhra Bank 9.00% Rs.1,000 – Rs.25,000 plus GST
    Federal Bank 9.25% Rs.1,500 – Rs.2,500
    Canara Bank 8.70% - 11.30% Rs.1,000 – Rs.5,000
    HDFC Bank 9.50% - 10.25% Rs.3,000 – Rs.10,000
    ICICI Bank 9.30% - 12.05% Rs.3,500 – Rs.8,500
    Indian Bank 9.10% Up to Rs.10,236
    Allahabad Bank 8.60% - 10.85% Up to Rs.8,696
    IDBI Bank 9.20% - 9.90% -
    Axis Bank 9.05% - 11.30% Rs.3,500 – Rs.5,500
    State Bank of India 8.80% to 12.05% Nil

    How to Fetch Low Interest Rates in Chandigarh

    Some of the ways by which you can get a car loan at low interest rates are mentioned below:

    • Increase down payment: If you pay a high down payment, the loan amount that is provided by the lender will reduce, In case of a high down payment, lenders will also provide low loan interest rates because it will give an impression that you are financially stable.
    • Maintain a good credit score: It is vital that you have a good credit score when you apply for a car loan. In case your credit score is bad, your application will either be rejected, or lenders will provide car loans at high interest rates. A good credit score also shows that you are financially stable. Therefore, lenders offer a low interest rate if your credit score is good.
    • Opt for a short tenure: The longer the repayment tenure, the higher the interest rate is. Therefore, in case you want to reduce the interest rates, you must opt for a shorter tenure. Even though the Equated Monthly Instalments (EMIs) will be low for a long repayment tenure, the interest rates are high.
    • Compare: It is important that you compare car loans that are offered by various banks and NBFCs before opting for one. Certain banks and NBFCs offer car loans at lower interest rates when compared to others. There are various third-party websites, such as Bankbazaar.com, where car loans from different lenders can be compared. The benefits and features of these car loans can also be compared.
    • Negotiate with the lender: You can also try to negotiate with the lender when availing a car loan. Based on various factors such as loan tenure, income status, and credit score, the interest rate can be negotiated. Before you approach any lenders, negotiate with your existing bank, as they may offer you a car loan with a lower interest rate.
    • Maintain a low debt-to-income ratio: All lenders will assess your debt-to-income ratio before providing a car loan. In case you have any existing EMIs, it is better that you clear them before opting for a car loan. In case you have a high debt-to-income ratio, the interest rates will be high.

    Eligibility for Availing a Car Loan in Chandigarh

    Depending on whether you are a salaried employee or a self-employed individual, the eligibility criteria will vary. The eligibility criteria may also vary depending on the lender. Given below is the basic eligibility criteria that must be met when availing a car loan:

    • Salaried employees, self-employed individuals, sole proprietorships, private and public limited companies, and partnership firms can avail a car loan.
    • You must be at least 21 years old when you apply for the loan.
    • Salaried employees must not be more than 60 years old at the time of maturity. Self-employed individuals must not be more than 65 years old.
    • Salaried employees must have at least two years of work experience and must have worked at their current company for at least a year. Self-employed individuals must have a running business for at least 2 years.

    You can check the detailed eligibility criteria with the respective lenders before applying for a car loan.

    Documents Required

    Depending on whether you are a salaried employee or a self-employed individual, the documents that must be submitted will vary. The list of documents that must be submitted by salaried employees and self-employed individuals are mentioned below:

    Salaried Employees

    • Identity Proof: Any of the below-mentioned documents can be submitted as proof of identity:
      • Passport
      • Permanent Account Number (PAN) Card
      • Aadhaar Card
      • Driving License
      • Voter ID
    • Address Proof: Any of the below-mentioned documents can be submitted as proof of address:
      • Ration Card
      • Aadhaar Card
      • Passport
      • Driving License
      • Life Insurance Policy
      • Electricity Bill
      • Telephone Bill
    • Income Proof: Latest salary slips, and Form 16 must be submitted.
    • Bank statement for the last 6 months must be submitted.

    Self-employed Individuals

    • Identity Proof: Any of the below-mentioned documents can be submitted as proof of identity:
      • PAN Card
      • Aadhaar Card
      • Passport
      • Voter ID
      • Driving License
    • Address Proof: Any of the below-mentioned documents can be submitted as proof of address:
      • Ration Card
      • Aadhaar Card
      • Passport
      • Driving License
      • Telephone Bill
      • Electricity Bill
      • Life Insurance Policy
      • Sales Tax Certificate
    • Income Proof: The below mentioned documents must be submitted as proof of income:
      • Latest Income Tax Returns (ITR)
      • Audited Balance Sheet
      • Profit and Loss Account
    • Bank statement for the last 6 months must be submitted.

    You can contact the lender to check if any other documents must be submitted.

    FAQs on Car Loan in Chandigarh

    1. Is it possible to sell a vehicle before the repayment of the car loan?
    2. The car cannot be sold unless a ‘No Objection Certificate’ is provided by the lender. The ‘No Objection Certificate’ is only given after the car loan is paid.

    3. What is the maximum loan amount that can be availed?
    4. Depending on the lender, the maximum loan amount will vary. You can contact your lender to check the details.

    5. Can a car loan be availed on an existing car?
    6. Yes, a car loan can be availed on an existing car.

    7. Do you need to provide security or collateral when availing a car loan?
    8. No, security or collateral need not be provided when availing a car loan. The car acts as the security.

    9. Should a guarantor be provided when availing a car loan?
    10. No, a guarantor need not be provided when availing a car loan. However, in case you do not meet the credit criteria, the lender may request a guarantor to be provided.

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