Top banks in Uttar Pradesh are offering car loans for purchasing new cars as well as pre-owned cars not older than 5 years. Some banks only finance the purchase of used cars not older than 3 years.
You can choose from fixed and floating interest rate packages. Most banks peg their floating interest rates to RLLR (Repo Linked Lending Rate) or MCLR (Marginal Cost of funds-based Lending Rate).
Most banks offer repayment tenures up to 84 months with the option of early repayment. Some banks charge a prepayment fee for closing the loan before the loan tenure, which can be up to 5% of the outstanding balance or the remainder of the interest payments.
Find below the top banks in Ghaziabad offering new and pre-owned/used car loans, the interest rate offered, and the processing fees charged:
|Bank||Interest Rate?for New Cars (p.a.)||Interest Rate for Used Cars||Processing Fee|
|Allahabad Bank Car Loan (AllBank Vahan)||8.55% to 10%||9.25% to 11%||0.50% of loan amount (max. Rs.8696) Allahabad Bank employees – No fee|
|State Bank of India(Auto Loans)?||8.80% to 9.50%?||10.50% to 12%?||Contact the bank?|
|Bank of Baroda (Car Loan)||8.80% to 10.55%||8.80% to 10.55%||**Offer – Rs.500 + GST until 31 December 2019 Otherwise, 0.50% of loan amount (min. Rs.2,500; max. Rs.10,000)|
|Punjab National Bank(Vehicle Loans)||RLLR linked: 8.55% to 9% MCLR linked: 9.20%||RLLR linked: 8.55% to 9% MCLR linked: 9.20%||Loan amount up to Rs.6 lakh: Rs.1,000 Loan amount above Rs.6 lakh: Rs.1,500|
|Union Bank of India (Vehicle Loan/Union Miles)?||9.05%?||12.05%?||Flat fee of Rs.1,000?|
|Syndicate Bank(Synd Vahan)||8.85% or 9.10%||Not applicable||Above Rs.25,000 to Rs.2 lakh: Rs.1.25 per Rs.1,000 (min. Rs.125) Above Rs.2 lakh: Rs.200 per lakh|
|Bank of India (BOI Star Vehicle Loan)||8.60% to 9.20%||8.60% to 9.20%||0.25% of loan amount (min. Rs.1,000; max. Rs.5,000) **waived until 31 December 2019|
|Canara Bank(Canara Vehicle)||8.75% to 11.30%||8.75% to 11.30%||0.25% of loan amount (min. Rs.1,000; max. Rs.5,000)|
|HDFC Bank||9.75% to 10.60% (rack interest)||13.75% to 16% (rack interest)||0.40% of loan amount (min. Rs.3,000; max. Rs.10,000)|
|Prathama Bank (Car Loans)||9.20%||9.20%||Loan amount up to Rs.1 lakh: Rs.250 p.a. Loan amount above Rs.1 lakh: Rs.500 p.a.|
There are several factors that you can consider getting the lowest rates on car loans in Uttar Pradesh. Apart from comparing interest rates offered by various lenders, here are other factors:
Many banks offer lower interest rates to salaried employees. This is because they pose a lower risk to the bank in terms of defaulting on the loan as they have a consistent flow of income coming in every month. Self-employed, on the other hand have variable income, thereby, posing a larger risk of default to lenders. For example, Bank of India offers 0.1% lower rate to salaried employees.
Different banks have different ways of assessing risk when it comes to lending. For example, SBI assess risk by considering applicants credit scores. Applicants with credit score above 750 are offered the lowest interest rates and applicants with scores below 650 are offered the highest rates. Allahabad Bank uses customer rating to determine interest rates on car loans from AB-1 to AB-6. The closer your rating is to AB-1, the lower your interest rate on car loan will be.
Many banks are encouraging car ownership by women through offering concessional interest rates on select car loan schemes. For instance, SBI, under their Loyalty Car Loan Scheme, are currently offering women 0.05% lower interest rates than men.
If you have an existing relationship with a bank, you could be offered a lower interest rate than other applicants. Bank of Baroda offer existing home loan customers a concession of 0.25% on car loan interest rates. Similarly, several banks offer a lower rate of interest to customers who maintain a salary account with them.
All lenders either offer lower rates or the same rate to applicants who are purchasing new cars. The difference in interest rate of new car loans and used car loans can go up to 4%, in some cases, even higher. This means higher interest payments. Although new cars are more expensive, you will pay more in interest payments on a used car loan.
Let’s take an example here – the interest payments on a new car costing Rs.4 lakh, at a tenure of 3 years and interest rate of 9% p.a., will be around Rs.58,000. In comparison, the interest payments on a used car costing Rs.3 lakh, with a tenure of 3 years and interest rate of 13% p.a. will be around Rs.64,000.
As you can see, although the cost of a used car is lesser, the interest payments are higher due to the higher interest rate charged.
If you want to calculate your estimated EMIs (equated monthly instalments), interest payments, and overall cost of your car loan, you can use the BankBazaar Car Loan EMI Calculator.
|Eligibility Parameters||Eligibility Criteria||Age|
|Minimum annual income??||Starting?from?around Rs.2 lakh|
All applicants have to submit certain documents for the car loan application to be processed. Apart from the completed and signed application form, here are the documents that may be required from you. Actual documents may differ based on the bank you choose, however, most banks request at least 1 document from each of the categories mentioned below:
|Documents||Salaried employees||Self-employed individuals|
|ID proof??||Passport, Aadhaar, PAN, Election ID, Driving License, any other government issued ID card||Passport, Aadhaar, PAN, Election ID, Driving License, any other government issued ID card|
|Age proof/Date of Birth Proof||Birth Certificate, Aadhaar with complete DOB listed, Driving License, PAN, any other government issued ID card||Birth Certificate, Aadhaar with complete DOB listed, Driving License, PAN, any other government issued ID card|
|Address proof or Office/Business proof?||Telephone/electricity/gas bill, life insurance policy, Ration Card, Voter ID, Driving License, any other government issued ID card||Official telephone/electricity bill, Sales Tax certificate, MSME/SSI Registration Certificate, Shop & Establishment Act Certificate|
|Signature Verification?||Banker’s verification, PAN, Passport||Banker’s verification, PAN, Passport|
|Income documents?||Bank account statement, salary slips, Form 16, IT Returns||Bank account statements, audited balance sheet, P&L statement, IT Return|
|Other documents?||Up to 2 passport size photographs||Up to 2 passport size photographs|
Yes. Many banks such as SBI, Union Bank of India, and Bank of Baroda offer car loans to Non-Resident Indians. However, some banks only offer such loans to Indian residents. Contact your bank to know if they extend car loans to NRIs.
Car loans can be obtained for the purchase of passenger cars, Multi Utility Vehicles (MUVs), Sports Utility Vehicles (SUVs), sports cars, and luxury cars.
No. These car loans are meant for a car purchase for personal use only. However, many banks offer a separate commercial vehicle loan meant for commercial use of the vehicle.
Yes. Many popular banks such as State Bank of India and Allahabad Bank offer car loans to individuals engaged in agriculture and allied activities. However, note that the eligibility criteria of many banks require you to possess a minimum of 5 acres of irrigated land.
This depends on the bank. All banks require you to provide security in the form of hypothecation of the purchased vehicle to the bank. However, some banks also require you to provide a guarantor who must be your spouse or any immediate family member.
Note that most banks require the guarantee of an Indian resident for NRI car loan applications.
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