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).
|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|
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|
|Minimum Annual Income||Rs.3 lakh|
|Business or Job Stability||
|Other Requirements||Should have a telephone/mobile connection|
The best time to buy a new car is now. Browse through BankBazaar’s exclusive assortment of car financing options that could make your dream come true!
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.
|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|
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.
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.
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.
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.
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.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.