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.
|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|
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|
|Minimum Annual Income||Rs.3 lakh|
|Business or Job Stability||
|Other Requirements||Should have a telephone/mobile connection|
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:
|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.
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.
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.
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.
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.
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.
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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