When you live in a city like Mumbai where you constantly need to be mobile for work or leisure, owning a car is more than a necessity. Hence, availing a car loan to buy your own car is a good idea. Owning a car gives you the independence to drive around without having to rely on anyone. Availing a car loan n Mumbai comes with zero hassle, is quickly approved, and has an affordable rate of interest on it. If you have been wanting to buy your own car for some time, the bundle of benefits that car loans in Mumbai offer should be good enough motivation to take the plunge.
|Bank||Interest rates||Minimum income||Processing fee|
|State Bank of India||9.30% to 12.45%||Nil||Rs.2.5 lakh p.a. to Rs.4 lakh p.a.|
|Axis Bank||9.25% onwards||Rs.3,500 to Rs.5,500||Rs.1.8 lakh p.a. to Rs.2.4 lakh p.a.|
|ICICI Bank||9.30% to 12.85%||Rs.3,500 to Rs.8,500||-|
|Canara Bank||8.95% to 9.60%||0.25% of the loan amount||Rs.3 lakh p.a.|
|HDFC Bank||9.75% to 10.60%||0.4% of the loan amount||Rs.3 lakh p.a.|
|IndusInd Bank||10.65% onwards||0.5% of the loan amount||Rs.2 lakh to Rs.2.5 lakh p.a.|
|United Bank of India||9.15% onwards||0.59% of the sanctioned loan amount||Rs.25,000 per month|
|Punjab National Bank||9.05% onwards||Rs.1,000 to Rs.1,500||Rs.20,000 per month|
|Federal Bank||9.20% onwards||N/A||Rs.20,000 per month|
|Bank of Baroda||1-year MCLR + Strategic premium + 0.25% p.a.||Rs.1,000 to Rs.2,500 + GST||-|
The interest rates offered on car loans by various lenders in Mumbai may vary but it is affordable and competitive. If you wish to avail car loans with lowest interest rates in Mumbai, you can follow the below-given tips:
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Different lenders in Mumbai may have different eligibility criteria for car loans and hence, it is advised that applicants go through the parameters mentioned on the websites of the lenders. The basic eligibility criteria, however, is the same for most of the banks and they have been listed below:
|Criteria||Salaried individuals||Self-employed individuals|
|Income||Between 2.5 lakh p.a. and Rs.3 lakh p.a.||Between Rs.1.8 lakh p.a. and Rs.3 lakh p.a.|
|Income Status||Should have been continuously employed for 2 years and at least 1 year with the current employer||Should have been in the same line of business for at least 2 years|
To apply for a car loan in Mumbai, applicants should submit the following documents:
*Please note that some lenders may need the applicants to submit some additional documents depending on various factors such as the occupation of the applicant, age, etc.
Car loans can be used to purchase any type of passenger vehicles including SUVs (Sport Utility Vehicles), MUVs (Multi Utility Vehicles), etc. You can also avail car loans to buy vehicles for commercial use. Some lenders also offer car loans for the purchase of trucks, tractors, and construction equipment.
Yes, many lenders will offer loans on your existing car if you have a good payment history with your lender.
You can repay your loan in three ways – Standing Instruction (SI), Electronic Clearing Service (ECS), and Post-Dated Cheques (PDCs). It is always recommended that you use the first two ways to repay your loan as they are faster and the chances of error are low which is not the case when it comes to PDCs.
Most lenders will not ask you for a guarantor to avail a car loan. However, if your income fails to meet the minimum income criteria, lenders may ask you to provide a guarantor or a co-applicant to ensure that you are in a position to repay the loan.
In this method, the principal amount decreases each month after you pay the EMI (equated monthly instalment) and the interest is computed on the reduced outstanding amount.
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