• Car Loan in Kolkata

    Car Loan in Kolkata – Overview

    Kolkata, the capital of West Bengal, is a bustling center of commerce and culture. Backed by a rich heritage, the city of joy is one of the oldest and prominent hubs of eastern geography in the country. The flourishing economy has elevated the spending power of denizens residing in urban centers. One of the key indicators of a thriving lifestyle is owning cars.

    With choking traffic and crowded public transport systems, the average citizen is exploring personal means of transport such as cars. Loans are a critical part of financing this purchase. Almost all national and private banks provide car loans in Kolkata. Car manufacturers and dealerships also extend seasonal loan offers on specific models at low interest rate.

    Interest Rate Offered by Top Lenders in Kolkata

    Name of the Bank Interest Rate Processing Fee
    State Bank of India 8.80% to 12.05% Nil
    ICICI Bank 9.30% to 12.85% Rs.3,500 to Rs.8,500
    Axis Bank 9.05% to 11.30% Rs.3,500 to Rs.5,500
    HDFC Bank 9.50% to 10.25% Rs.3,000 to Rs.10,000
    IDBI Bank 9.20% to 9.90% -
    Canara Bank 8.70% to 11.30% Rs.1,000 to Rs.5,000
    Allahabad Bank 8.60% to 10.85% Up to Rs.8,696
    Federal Bank 9.25% Rs.1,500 to Rs.2,500
    Indian Bank 9.10% Up to Rs.10,236
    Andhra Bank 8.80% Rs.1,000 to Rs.25,000

    How to Fetch Lower Interest Rates in Kolkata

    • Make a higher down payment – If you make a higher down payment, you will need to avail a car loan of a lower amount. This will give lenders the impression that you are financially stable and compel them to offer you a low interest rate.
    • Negotiate with your lender – Many lenders will let you negotiate on the interest rates based on factors such as your credit score, income status, loan tenure, etc. Negotiate with your existing bank first before you approach other lenders.
    • Maintain a credit score above 750 – The most important factor that banks consider before offering you a car loan is your credit score. To be eligible for a car loan, you will need a credit score of at least 750. A higher credit score can fetch you a car loan at a lower interest rate.
    • Compare benefits offered by various lenders – Before you pick a lender, ensure that you explore the benefits, including the interest rates, offered by various lenders and compare them. This will help you make an informed decision because you can then pick the one that offers the lowest interest rates, along with other additional benefits.
    • Keep your debt-to-income ratio low – Before lenders offer you a car loan, they will assess your debt-to-income ratio. So, if you have any existing loans for which you pay equated monthly instalments (EMIs), it is a good idea to clear them first before you apply for a new loan. You may be denied a car loan if your debt-to-income ratio is high or charged a higher interest rate.

    Eligibility for Availing a Car Loan in Kolkata

    The eligibility for availing a car loan in Kolkata may vary from lender to lender, but the generic criteria have been listed below:

    Who Can Avail Salaried, self-employed individuals and professionals of partnership firms, private and public limited companies, and sole proprietorships
    Minimum Age 21 years
    Maximum Age
    • Salaried – 60 years at the end of the loan tenure
    • Self-employed – 65 years at the end of the loan tenure
    Minimum Annual Income Rs.3 lakh
    Business or Job Stability
    • Salaried – Worked for at least 2 years out of which 1 year should be with the current employer
    • Self-employed – Should be in the same line of business for at least 2 years
    Other Requirements Should have a telephone/mobile connection

    Please check the eligibility criteria with individual lenders before you apply for a car loan.

    Documents Required

    To avail a car loan, you may be required to furnish the below-given documents:

    Documents Salaried Self-employed
    Proof of Identity Passport/PAN Card/Aadhar Card/Driving License/ Voter’s ID PAN Card/ Aadhaar Card/ Passport/Voter’s ID/Driving License
    Address Proof Ration Card/ Aadhar Card/ Passport/ Driving License/Telephone Bill/Electricity Bill/Life Insurance Policy Ration Card/ Aadhar Card/ Passport/ Driving License/Telephone Bill/Electricity Bill/Life Insurance Policy/ Sales Tax Certificate
    Income Proof Form 16 and latest salary slips Latest Income Tax Returns/Audited Balance Sheet/Profit and Loss Account/
    Others Bank statement for the last 6 months Bank statement for the last 6 months

    Please note that the documents required may vary from lender to lender.

    FAQs on Car Loans in Kolkata

    1. What is the lowest EMI that I need to pay to avail a car loan in Kolkata?

      2. Answer: The amount of EMI you need to pay on your car loan will depend on the loan amount, tenure, and the interest rate charged by the lender. If you wish to know the EMI amount, you can use the EMI Calculator tool by entering the loan amount, tenure, and interest rate. Also, the lowest EMI that you may have to pay for a car loan, considering that you take a loan of Rs.5 lakh for a maximum tenure of 7 years, and at an interest rate of 9% is Rs.8,044.

    2. How can I check my eligibility for a car loan in Kolkata?

      3. Answer: If you have decided on a lender for a car loan, you can check for the eligibility criteria on the official website of the lender. You can also know your eligibility by visiting the nearest branch of the lender or call their customer care number.

    3. Can I foreclose my car loan?

      4. Answer: Yes, the option to foreclose a car loan is offered by most lenders but you may be charged a penalty for that and this will vary from lender to lender.

    4. What will happen if I fail to make my EMI payments?

      5. Answer: Failing to make your EMI payments on time will affect your credit scores which, in turn, may affect your chances of securing a loan in the future. Also, if you miss paying your EMIs more than 6 consecutive times, the bank has the authority to seize your vehicle and auction it to recover the outstanding loan amount.

    5. How do I apply for a car loan in Kolkata?

      6. Answer: There are multiple ways by which you can apply for a car loan in Kolkata. The first way is through BankBazaar which allows you to explore and compare the benefits offered by various lenders. Once you decide the lender, you can apply for the same on the BankBazaar website. The second way to apply for a car loan is by visiting the official website of the bank or its nearest branch. You can also call the customer care number of the bank to apply for a car loan.

     

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