Those who live in Meerut have access to car loans from a number of major banks in the state of Uttar Pradesh. The interest rates applicable to car loans in Meerut start from as low as 8.40% and the processing fees are just upwards of Rs.500, depending on the lender. The repayment tenures for new car loans are usually around 7 years, while the tenures for used vehicles is 5 years.
The interest rates offered on car loans are determined by the MCLR (Marginal Cost of funds-based Lending Rate) or the benchmark rate set by the lender. Most of the car loans in Meerut are floating-rate loans. A new car loan is a great option for those who are looking to purchase a new car in Meerut, while pre-owned car loans can be ideal for those who want to buy a second-hand or used car.
New car loans usually come with longer repayment tenures that extend up to 7 years or 84 months. Used car loans, on the other hand, come with relatively lower repayment tenures of 5 years or 60 months. When you avail a car loan from a certain bank, it is necessary for your vehicle to be hypothecated to said bank.
Here are the details of some of the top banks that offer car loans in Meerut, Uttar Pradesh:
Bank | Interest Rate for New Cars (p.a.) | Interest Rate for Used Cars | Processing Fee |
8.80% to 9.50% | 10.50% to 12% | 0.51% of the loan amount | |
RLLR + 0.75% onwards | Rs.1,000 for loan amounts up to Rs.6 lakh and Rs.1,500 for loan amounts above Rs.6 lakh | ||
9.25% onwards | 14.80% onwards | Rs.3,500 to Rs.5,500 for new cars and 1% of loan amount subject to a maximum of Rs.6,000 for used cars | |
1-year MCLR + 0.40% | 1-year MCLR + 1.50% if purchased from a certified dealer, and 1-year MCLR + 2% if purchased from other dealers | 1% of the loan amount subject to a maximum of Rs.1,500 | |
8.40% | 0.40% of the loan amount subject to a minimum of Rs.3,000 and a maximum of Rs.10,000 | ||
8.60% to 9.20% | 8.60% to 9.20% | 0.25% of the loan amount subject to a minimum of Rs.1,000 and a maximum of Rs.5,000 | |
8.95% | 9.95% to 10.95% | 0.50% or 0.60% of loan amount subject to a minimum of Rs.500 and a maximum of Rs.10,000 | |
8.75% to 11.30% | 8.75% to 11.30% | 0.25% of the loan amount subject to a minimum of Rs.1,000 and a maximum of Rs.5,000 | |
9.30% to 12.85% | 14.25% | Rs.3,500 to Rs.8,500 for new cars and 2% of loan amount subject to a maximum of Rs.15,000 for used cars |
One of the best ways to find lenders that offer low interest rates involves a thorough comparison of the different car loan schemes offered by various banks. Apart from comparing the loans offered by lenders, you can also push for a lower interest rate on your car loan in Meerut by following these simple tips:
Eligibility Parameters | Eligibility Criteria |
Minimum and Maximum Age |
|
Minimum annual income | Rs.1.80 lakh and above |
Employment requirement |
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The documents you must furnish at the time of availing a car loan in Meerut will depend on your employment type. Here are the documents required for both salaried applicants as well as self-employed individuals when applying for a car loan in Meerut:
Documents | Salaried employees | Self-employed individuals |
ID proof | PAN, Aadhaar, Voter ID, Passport, Driving License, any other ID issued by the government | PAN, Aadhaar, Voter ID, Passport, Driving License, any other ID issued by the government |
Address proof or Office/Business proof | Aadhaar Card, Passport PAN, Utility bill, Ration Card, Driving License, any other ID issued by the government | Electricity/Telephone bill, VAT or Sales Tax Certificate, Shop & Establishment Act Certificate, Registered Lease with other utility bills, MSME or SSI Registration Certificate, Current Account Statement |
Proof of date of birth | Birth certificate, passport, Aadhaar with full DOB, any other ID issued by the government | Birth certificate, passport, Aadhaar with full DOB, any other ID issued by the government |
Signature Verification | Passport, Banker's verification, PAN | Passport, Banker's verification, PAN |
Income documents | Salary slips, Income tax returns, Latest Form 16 | Income tax returns, Audited Balance Sheet and Profit and Loss Statement for at least two years |
Other documents | Passport size photographs | Passport size photographs |
No, you do not require a collateral to apply for a car loan because the car itself will work as a collateral in this case. In case you default on your EMIs, the bank has the authority to seize your vehicle.
In most cases, you do not require a co-borrower or a guarantor to apply for a car loan. However, in case you are unable to meet the eligibility criteria set by the bank, you may be requested to apply with a guarantor.
Your car loan application could be rejected by the lender in case your credit score is poor, or if you have defaulted on repayments in the past, or applied for loans several times and been rejected. Your application could also be rejected in case you fail to meet the eligibility criteria set by the bank, such as the age, the income level, the credit score, your relationship with the bank, etc.
Fixed rate loans, as the term suggests, are those that are offered with a fixed interest rate for the entire tenure of the loan. The EMIs will remain the same for the entirety of the loan tenure. Floating interest car loans, on the other hand, are those wherein the interest rate is subject to change from time to time depending upon market conditions. The EMIs under floating rate loans are subject to change from time to time.
Yes, you can negotiate with your lender to avail a favourable interest rate. However, to negotiate, you must ensure that your credit score is excellent and that you have a good long-term relationship with your bank.
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