If you are living in Chennai and wish to own a car to drive around the city, a car loan can make that wish come true. Lenders understand that owning a car is desired by many who wish to enjoy the convenience of driving around in Chennai and hence offer car loans at affordable rates of interest. Car loans in Chennai also require minimal documentation, are quickly approved, and the application process is also simple.
|Bank||Interest rates||Minimum income|
|HDFC Bank||9.75% to 10.60%||Rs.3 lakh p.a.|
|Canara Bank||8.95% to 9.60%||Rs.3 lakh p.a.|
|State Bank of India||9.30% to 12.45%||Rs.2.5 lakh p.a. to Rs.4 lakh p.a.|
|ICICI Bank||9.30% to 12.85%||_|
|Axis Bank||9.25% onwards||1.8 lakh p.a. to Rs.2.4 lakh p.a.|
|Punjab National Bank||9.05% onwards||Rs.20,000 per month|
|Bank of Baroda||1-year MCLR + Strategic premium + 0.25% p.a.||_|
|IndusInd Bank||10.65% onwards||Rs.2 lakh to Rs.2.5 lakh|
|United Bank of India||9.15% onwards||Rs.25,000 per month|
|Federal Bank||9.20% onwards||Rs.20,000 per month|
In Chennai, car loans can be availed at low interest rates if you bear the following things in mind:
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When it comes to eligibility criteria, it may vary from lender to lender and hence, applicants are advised to check for the same by visiting the websites of the lenders. However, the basic eligibility criteria for most of the banks/lenders will be the same and they are given below:
|Criteria||Salaried individuals||Self-employed individuals|
|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|
While applying for a car loan in Chennai, lenders will expect you to submit the below-mentioned documents:
Lenders in Chennai may require some additional documents for a car loan and this will depend on the applicant’s occupation, age, income, etc.
You can avail a car loan to purchase any kind of passenger vehicles which include hatchbacks, Sports Vehicles, (SUVs), sedans, and Multi-Utility Vehicles (MUVs). Car loans can also be availed to purchase vehicles for commercial use. Some financial institutions also offer finance for the purchase of construction equipment, tractors, trucks, etc.
Yes. Some lenders will allow you to negotiate on the car loan interest rates provided you have a good repayment history with them and are a loyal customer of the bank. You can also negotiate with the lenders to offer you a good deal on the interest rates if you have a credit score of more than 750.
Missing out on making EMI payments may result in a poor credit rating and lower your chances of securing a loan in the future. One or two missed EMI payments may be allowed by many lenders but beyond that, you will be considered as a defaulter. In such cases, the lender will have the authority to seize your vehicle and auction it to recover the outstanding loan.
Banks offer two types of interest rates on car loans – fixed and floating from which you can choose. Shop around to figure out which bank offers the kind of interest rate you are looking for and opt for it.
You do need to provide any security or collateral to avail a car loan as the vehicle itself will be considered as a security. The vehicle will be hypothecated to the lender until the loan amount is paid by the borrower and in cases where the borrower defaults, the lender can seize the vehicle and recover the loan amount.
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