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  • Car Loans in Lucknow

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  • Residents of Lucknow can avail car loans from top lenders in the country to buy their dream cars. Car loans in Lucknow, the capital of Uttar Pradesh, are available at an interest rate ranging between 9.05% and 12.85%, to be repaid in a maximum of 7 years.
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    Car Loans in Lucknow – Overview

    Lucknow is one of the fastest-growing cities in India and a significant centre of education, tourism, commerce, governance, aerospace, design, culture, etc. Around 60% of the total exports from the state are in the handicrafts sector while the other items of export are marble products, gems, brass products, art pieces, leather goods, and glass items.

    Lucknow also ranks one among the ten fastest-growing job-creating cities in the country. The fast-paced life in Lucknow requires the residents to have their vehicles and hence, many top lenders in the country offer car loans. These car loans come at attractive interest rates, are quickly processed, and require minimal documentation.

    Interest Rate Offered by Top Lenders in Lucknow

    Name of the Bank Interest Rate Processing Fee
    ICICI Bank 9.30% to 12.85% Rs.3,500 to Rs.8,500
    State Bank of India 8.80% to 12.05% Nil
    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% -
    Federal Bank 9.25% Rs.1,500 to Rs.2,500
    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
    Indian Bank 9.10% Up to Rs.10,236
    Andhra Bank 8.80% Rs.1,000 to Rs.25,000

    How to Fetch Lower Car Loan Interest Rates in Lucknow

    • Explore all car loan options and compare – With many car loan options offered by various lenders, it may be confusing to pick a specific lender. Hence, you should compare the benefits offered by each lender before you pick the one which offers the lowest interest rates.
    • Keep your credit score above 750 – If your credit score is above 750, your chances of securing a car loan with lower interest rates are higher. This is because a high credit score indicates your high repayment capacity compelling lenders to offer you loans at lower interest rates. Check your credit score regularly so that you can take corrective steps if in case it is low.
    • Make a higher down payment – If you make a higher down payment, you will need to avail a lower loan amount which means you will be able to pay off the loan quicker. Lenders see this as a positive thing and hence, may offer you a car loan at a lower interest rate.
    • Ensure that your debt-to-income ratio is low – The percentage of your income that goes in paying your debt is referred to as the debt-to-income ratio. You should always keep this ratio low if you wish to secure a car loan at a low interest rate.
    • Negotiate with the lender – To fetch a car loan with a loan interest rate, you can negotiate with the lender who will be happy to acknowledge your request if you have a good credit score, choose a shorter repayment tenure, and avail a lower loan amount. However, before you approach other lenders, it is a good idea to approach your existing lender first. Since your transaction history is already known to them, chances of them offering you a low interest are higher.

    Eligibility for Availing a Car Loan in Lucknow

    The eligibility criteria to avail a car loan in Lucknow may vary from lender to lender. However, there are some basic criteria that most lenders will require you to fulfil and they 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

    Documents Required

    You do not need to furnish too many documents to avail a car loan in Lucknow. All you will need to provide is proof of identity, address, and income proof. We have provided the details of these documents below:

    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/

    Please note that some lenders may require you to provide some additional documents during the car loan application process.

    FAQs on Car Loans in Lucknow

    1. My credit score is 700. Am I eligible for a car loan in Lucknow?
    2. Answer: Lenders will look for a credit score of at least 750 to offer you a car loan. With your credit score, your eligibility for a car loan is low. However, you can check with the lender directly to see if they can offer you a car loan. In most cases, your car loan application will get rejected and if some lenders do agree to offer you a car loan, you may be charged a high rate of interest.

    3. What will happen if I miss out on paying the EMIs on my car loan?
    4. Answer: If you default on your car loan EMIs, your credit score may take a bad hit and hamper your chances of securing a loan in the future. Also, if you miss out on more than 6 EMIs, the lender can seize your vehicle and auction it to recover the outstanding loan amount.

    5. Is there a way to find out how much EMI I need to pay towards my car loan?
    6. Answer: You can calculate the equated monthly instalment (EMI) amount by using the EMI Calculator tool. You will need to enter the loan amount, tenure, and interest rate into the tool after which it will calculate the EMI and display it to you. Please note that the EMI on your car loan will depend on the interest rate, loan amount, and the loan tenure.

    7. Can I get a top-up on my existing car loan?
    8. Answer: Yes, if you feel that the loan you availed is insufficient, you can apply for a top-up on your existing car loan. Since the lender already has your details and documents, availing a top-up loan is much easier as compared to taking a new loan.

    9. Do I have to pay any additional charges on my car loan?
    10. Answers: Apart from the processing fee that you will need to pay to the lender upfront, there are other charges that you may have to incur on a car loan. Some of these charges are documentation charges, stamp duty charges, loan cancellation charges, cheque swap charges, etc.

    11. Can I close my car loan before the completion of my tenure?
    12. Answer: Yes, you can foreclose your loan before the end of the loan tenure. Foreclosure facility is offered by most lenders but you may be charged a penalty fee which will vary from lender to lender. However, some lenders such as HDFC Bank and ICICI Bank does not charge any penalty on foreclosure if done within a specified time.

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