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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    Gurgaon Car Loan

    Applying for any loan can be a daunting task given its various components including the principal, interest rates, and repayment schedule.If you’re looking for a car loan in Gurgaon, this page may be able to help you find one that suits your every need. A car is more of a necessity today than it is a luxury. And owning one can be of immense help. And given that there are a plenty of lenders, it can be difficult to narrow down on one.To help you figure out what you need, we’re putting together some of the car financing options provided by some of the top lenders in the city. Take a look at the following information to know how to get the loan that is best suited for your needs.

    Lowest Car Loan Interest Rates in Gurgaon

    The following table gives you the list of lenders in Gurgaon that offer car loans with the lowest interest rates. We’ve also compiled the respective processing fees and the minimum income requirements that apply for each lender.

    Bank Interest rates Minimum income Processing fee
    Axis Bank New car – 8.60% p.a. to 11.50% p.a. Used car –15% p.a. to 17% p.a. Rs.20,000 per month For new car – Rs.3,500 to Rs.5,500 For used car – 1% of the loan amount or Rs.6,000, whichever is lower
    Corporation Bank 8.90% p.a. to 11.25% p.a. - Personal vehicles – 1% of the loan amount subject to a minimum of Rs.1,000 Commercial vehicles – 0.75% of the loan amount subject to a minimum of Rs.2,000
    HDFC Bank New car – 8.85% p.a. to 11.60% p.a. Used car – 13.75% p.a. to 16% p.a. Rs.20,833.33? per month New car -0.4% of the loan amount (minimum Rs.3,000 & maximum Rs.10,000) Used car - 1.5% of?the loan amount(minimum Rs.2,500 & maximum Rs.5,000)
    IDBI Bank 9.10% p.a. Rs.20,000 per month Rs.1,000 + GST
    State Bank of India(SBI) New car – 9.30% p.a. to 9.80% p.a. Used car – 10.75% p.a. to 12.05% p.a. Rs.20,833.33 per month For loans of up to Rs.6 lakh – Rs.1,000 +GST
    ICICI Bank New car – 8.95% p.a. to 13.40% p.a. Used car – 14.25% p.a. - 2% of the loan amount subject to a maximum of Rs.15,000
    Union Bank of India New car – 8.70% p.a. Used car – 12.10% p.a. - 0.50% of the loan amount or Rs.15,000, whichever is lower + taxes
    South Indian Bank New car – 10.70% p.a. - 1% of the loan amount subject to a maximum of Rs.10,000
    J&K Bank Floating rate - 9.55% p.a. Fixed rate – 12.05% p.a. to 12.25% p.a. Women borrowers – 9.3% p.a. Employed – Rs.25,000 per month Self-employed – Rs.33,333 per month Retired govt. employees – Rs.16,667 per month 0.50% of the loan amount subject to a minimum of Rs.500
     

    How to get a car loan in Gurgaon with low interest rates

    True, there are a number of lenders in Gurgaon that offer car financing options with attractive interest rates. But how can you make sure that you get the lowest rate in the market?

    There are a number of factors that determine what your interest rate will be. In this section, we’re going to take a deeper look into these factors and how they influence your vehicle loan’s interest rate. We’ll also see how you can use them to your advantage to get the best rates in the city.

    • Your credit history: Your credit score indicates how responsible you are with your finances. It shows lenders whether you have been repaying your existing loans on time and doing the same with your credit card bills as well. Having a good credit score can help you get better loan terms including lower interest rates. But if your score is not good, lenders may not give you favourable rates or may even reject your application. So, if your score is low, you should try and improve it before applying for an auto loan.
    • Your debt-to-income ratio: This ratio compares your income to the amount of debt you currently have against your name. It shows how much of your monthly income is going towards loan EMIs. If this ratio is on the higher side, it will tell lenders that you are currently handling too many loans. This may result in your loan application being rejected or you may get a loan with high interest rates to offset the risk the lender has to bear. So, if this ratio is high for you. You should try and clear most of your debts before applying for another loan.
    • Your monthly income: Lenders usually require you to earn a minimum income in order to qualify for a vehicle loan. But the truth is, the more you earn, the better it is for the lender because you run a lower risk of not repaying the loan. Therefore, the lender may give you lower interest rates on your loan since his risk level is low. If you’re expecting a rise in your income, wait till you get the raise, and then apply. This may help you get better rates of interest.
    • Be wise about your loan tenure: Choosing the right tenure for your loan is important especially since it can help you reduce your loan costs in the long run. Sometimes, lenders may give you a lower rate of interest if you choose a longer loan tenure. But remember that you are more likely to pay more interest in total over a longer tenure. But a longer tenure also means lower EMIs. So, choose based on which option is more beneficial to you.
    • Make larger down payments: Making a down payment larger than usual can help reduce the rate of interest on your auto loan. But if you’re planning on making a large down payment, keep an eye on your savings. You don’t want to exhaust your savings and be in a position of not having enough cash if an emergency arises.
    • Consult an online loan aggregator: An online loan aggregator can help you find the vehicle loan best suited for your needs in a matter of minutes. By giving a few details regarding your income, age, and where you stay, you will be able to find out the options available to you in Gurgaon. This should help you identify the cheapest loans being offered in the city and apply accordingly.
    • The power of negotiation: In a country like India, you know that a little bargaining can help you get reduced prices. The same applies when you want to get loans from lenders as well, except that it’s called negotiating. For example, if you want to take a loan from your existing bank but find another lender offering a lower rate, talking to your bank about this might help in reducing your interest rate.
     

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    What you need to Apply for a Car Loan in Gurgaon

    When you’re applying for a vehicle loan in this city, there are a few eligibility criteria that lenders expect you to fulfil. Failing to fulfil these criteria can get your application rejected. These criteria may differ from one lender to another. The following table gives you some of the common ones.

    Criteria Self-employed individuals Salaried individuals
    Age At least 21 years old At least 21 years old
    Income As required by the lender. Usually the same as that of salaried employees. Minimum income – Rs.20,000/month
    Work experience Business stability for at least 3 years 1 year of employment in the present establishment
     

    Documents Required

    • Fully completed and signed application form
    • KYC documents – proofs of age, ID, and address
    • Photographs
    • Authorised and signed bank statements
    • Income proof (income tax returns for the previous 2 years,recent salaryslips,etc.)
    • Proof of ownership of business, partnership deed, Memorandum of Association and/or Resolution of Board of Directors(for self-employed persons)

    Gurgaon is located near Delhi. It is modern in many ways and also has a historic pilgrimage value. It is surrounded by ancient ruins, but at the heart of the city, you will find the concrete jungle complete with all modern amenities. There are a lot of multinational entities that offer jobs to the young generation of today.

    If you live here or are planning on moving here, getting a car will help you get around the city a lot faster than most other means of transport. Strapped for cash to buy the car you want? Don’t worry. Check out the car financing options that are available to you in Gurgaon.

    With various low-interest car loans being offered by top lenders in the country, you will find that getting a car is easier than you think.

    FAQs

    Is there a specific way in which I should apply for my vehicle loan?

    No, there is no specific channel through which you should apply for a loan. Most lenders give you multiple options when it comes to this – through a branch office, online, or by calling the customer care number. You can choose whichever suits you the best.

    What interest rate should I choose for my loan – floating rate or fixed rate?

    This would depend on the risk that you want to take regarding interest rates. Floating interest rates are usually cheaper than fixed rates. But they are also susceptible to change as and when the Marginal Cost of funds based Lending Rate (MCLR) changes. MCLR is linked to the repo rate. So, if RBI reduces the repo rate, your interest rate may also reduce. But if the repo rate increases, your interest rate will also increase. Fixed rates, on the other hand, remain constant irrespective of the market changes. Since floating rates tend to be lower, most people prefer them.

    Will I be successful if I negotiate with my lender for a lower interest rate?

    While negotiating with your lender can help you get a lower interest rate, there is no certainty that this will happen. You need to convince your lender why you deserve a lower rate. This is where it helps to take a car loan from your current bank. If you have a good relationship with them, there are higher chances of you being successful.

    What factors determine my vehicle loan EMI?

    Your EMI is determined by three elements – the principal, the interest rate, and the tenure. During the initial few instalments, the interest component is usually higher since the outstanding principal is also high. Your tenure determines how much interest you pay in total. The longer your loan period, the more interest you will pay.

    What will happen if I am unable to pay a few EMIs on time?

    Your lender may call and remind you to pay if you fall behind on an EMI or two. But if you don’t pay for a long time, the lender will be at a loss and may exercise their right to confiscate your car. Defaults in loan repayment will also adversely impact your credit score.

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