Faridabad Car Loan

Faridabad Car Loan – Overview

Faridabad is the largest city in Haryana and a major industrial hub. Many top lenders in the country offer car loans to residents in the city as they are aware of the need of owning a vehicle in the city. Owning a vehicle offers the freedom of moving around at your convenience, whether it is for work or leisure purposes.

Car loans in Faridabad are available at affordable interest rates that can be repaid in EMIs that you can choose according to your budget. The EMI amount is dependent on the loan tenure, amount, and interest rate and can be calculated using the EMI Calculator tool. Once you calculate the EMI amount, you will be able to assess if you can afford to repay the car loan and take a decision accordingly.

Interest Rate Offered by Top Lenders in Faridabad

How to Fetch Lower Interest Rates in Faridabad

• Maintain a credit score above 750 – While the minimum credit score to get a car loan is 750, having a score around 800 may increase your chances of getting a car loan at a lower interest rate. This is because a higher credit score reflects your good repayment record. To maintain a healthy credit score, you should check your credit score regularly.
• Choose a shorter repayment tenure – A shorter repayment tenure means that you will be repaying your car loan sooner and lenders see it as a positive thing. Hence, they are likely to offer you a car loan at a lower interest rate simply because the risk of lending to you is lower. Choosing a shorter tenure will also help you save on the high interest rate that you would have paid over the loan tenure.
• Keep your debt-to-income ratio low – Having a low debt-to-income ratio is an indication to the lender that you can afford repaying the car loan. As a result, you may end up fetching a lower interest rate on your car loan.
• Negotiate with your existing lender – If you have a good relationship with your existing bank, they will not mind you negotiating for a lower interest rate. The chances of them acknowledging your request are higher provided you have a good repayment record with them.
• Compare all the options – Before you decide to take a car loan, it is a good idea to check out all the car loan options offered by various lenders and compare them. Once you do that, you will be able to choose the lender that offers the lowest interest rate. However, we recommend that you consider other factors as well such as processing fee, foreclosure options, etc.

Eligibility Criteria to Avail a Car Loan in Faridabad

The eligibility criteria for a car loan may differ from bank to bank but the basic ones that a majority of lenders look for, have been given below:

Documents Required to Avail a Car Loan in Faridabad

The documents that you must furnish for availing a car loan in Faridabad will depend on the lender and your employment type, whether you are salaried or self-employed. However, the basic documents that most lenders will want you to furnish are listed below:

FAQs on Car Loans in Faridabad

1. Can I close my car loan before my tenure ends?

Answer: Yes, you can. Most banks will allow you to foreclose your loan after you have paid the entire outstanding loan amount. Some lenders may charge you a penalty for foreclosing the loan and will allow foreclosure only after you have made certain successful EMI payments.

2. Does credit score have any impact on the eligibility for a car loan in Faridabad?

Answer: Yes, your eligibility for a car loan in Faridabad will be impacted by your credit score. Lenders will look for a minimum credit score of 750 to offer you a car loan. A higher credit score (above 750) may fetch you a lower interest rate while a lower score will result in you having to pay a higher interest rate.

3. What other charges can I expect on my car loan?

Answer: Besides the processing fee that needs to be paid upfront while applying for a car loan, the other charges that you may incur on a car loan are documentation charges, stamp duty charges, instrument/cheque swap charges, loan cancellation charges, etc.

4. Can I sell my car before the end of my loan tenure?

Answer: No, you cannot sell your car before repaying the entire loan. Once you repay your loan and foreclose it, you need to obtain a ‘No Objection Certificate’ from the lender. Only then will you be able to sell your car.

5. What will happen if I do not pay my EMIs on time?

Answer: Not paying your EMIs on time can make your credit score drop drastically spoiling your chances of securing a loan in the future. Also, if you miss out on paying more than 6 consecutive EMIs, the lender can seize the vehicle and auction it to recover the outstanding loan amount.