• Ludhiana Car Loan

    If you are living in Ludhiana and wish to buy a car, you can avail car loans from top lenders in the country at attractive interest rates and with minimal paperwork. Interest rates on car loans in Ludhiana start from 9.05% while repayment tenures can go up to 7 years. The processing fees on car loans start from Nil and can go up to Rs.25,000.

    Car Loans in Ludhiana – Overview

    Ludhiana is the largest city in Punjab and is one among the list of smart cities to be developed by the Indian government. As per the World Bank, it is the easiest city in India to do business with and is also one of the largest manufacturers of domestic sewing machines. The city also produces the largest share of winter clothing and due to its dominance in the textile industry, it is often referred to as the ‘Manchester of India’.

    The residents of Ludhiana commute in and around the city either for studies, business, or work and hence, the city has good roads that are well connected to other parts of India. Owning a car in Ludhiana has become more of a necessity which is why most of the lenders offer car loans to its residents to help them fulfil their dream of buying a car. These loans are quickly processed, requires minimal documentation and allows repayment in easy equated monthly instalments (EMIs).

    Interest Rate Offered by Top Lenders in Ludhiana

    Name of the Bank Interest Rate Processing Fee
    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
    State Bank of India 8.80% to 12.05% Nil
    Indian Bank 9.10% Up to Rs.10,236
    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
    Andhra Bank 8.80% Rs.1,000 to Rs.25,000

    How to Fetch Lower Interest Rates in Ludhiana

    • Keep your credit score above 750 – To get a car loan at a lower interest rate, ensure that you keep your credit score above 750 as this is the minimum score that lenders look for. A credit score of more than 750 indicates your high repayment capacity and hence, lenders would not mind offering you a lower interest rate.
    • Make a higher down payment – If you make a higher down payment, you will require a loan of a lesser amount which will ultimately mean that the loan will be paid off quicker. Lenders look at it as a positive thing and are likely to offer you a lower interest rate on your car loan.
    • Maintain a low debt-to-income ratio – A low debt-to-income ratio means that after paying your monthly debts, you still have enough portion of your earnings remaining and are capable of paying your EMIs. This can compel the lender to offer you a lower interest rate.
    • Negotiate with the lender – Many lenders will allow you to negotiate for a lower interest rate if your income and credit score is on a higher side, you choose a shorter repayment tenure, and if you avail a loan of a lower amount. Before you approach other lenders, make sure you approach your existing lender first and negotiate with them to offer you a lower interest rate.
    • Explore the options and compare – There are a lot of car loan options available and if you wish to find the one that offers the lowest interest rate, you must explore the benefits offered by various lenders and compare them. Only then will you be able to make an informed decision.

    Eligibility for Availing a Car Loan in Ludhiana

    Different lenders have different eligibility criteria for car loans but the basic ones 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

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    Documents Required

    Below, we have listed the basic documents that you will need to furnish when you apply for a car loan in Ludhiana. You may have to submit additional documents based on the lender’s requirements.

    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

    FAQs on Car Loans in Ludhiana

    1. I live in Ludhiana and have a credit score of 740. Am I eligible for a car loan?
    2. Answer: To be eligible for a car loan, the minimum score that lenders look for is 750. Unfortunately, with your score, the chances of your car loan application getting rejected are high. There are, however, some lenders that may offer you a car loan despite your poor credit score but in such cases, you may be charged a higher rate of interest.

    3. Will I have to pay any extra charges when availing a car loan in Ludhiana?
    4. Answer: Besides the processing fee that you need to pay upfront while applying for a car loan, the other charges that you may incur are documentation charges, stamp duty fee, loan cancellation fee, cheque/instrument swap charges, etc.

    5. Do I have to provide any security to avail a car loan in Ludhiana?
    6. Answer: No, there is no need for you to provide a security or collateral for availing a car loan as the car will be hypothecated to the bank. In case you fail to pay your EMIs on a continuous basis, the bank can seize your car and auction it to recover the outstanding loan amount.

    7. Will my EMI be lower if I choose a longer repayment tenure?
    8. Answer: Your EMI amount will depend on a lot of factors, including the loan tenure you choose. If you opt for a longer tenure, your EMI amount will be lower. So, if you cannot afford to pay a higher EMI, it is a good idea to choose a longer tenure. However, please be advised that doing so will lower the EMI amount but over the loan tenure, you will end up paying higher interest.

    9. Can I avail a top-up loan on my existing car loan?
    10. Answer: If, after availing a car loan, you realise that you require extra funds for any personal reasons, you can take a top-up loan on your existing car loan. Instead of applying for a new loan, a top-up loan is easier and quicker as the lender will already have your details and documents. However, lenders will require you to have a clear repayment record for at least 9 months before they can offer you a top-up loan. This condition will vary from lender to lender.

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