If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
  • Car Loan BYTES FROM OUR KITCHEN

    Mumbai Car Loan

    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.

    Interest Rates Offered by Top Lenders on Car Loans in Mumbai

    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 -
     

    How to Fetch the Lowest Interest Rates on Car Loans in Mumbai

    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:

    • Opt for a shorter repayment tenure – Many car loan applicants have this notion that longer repayment tenures are better as the EMI (equated monthly instalment) amount payable each month is low. They fail to realise that longer repayment tenures are seen by the lenders as applicant’s low repayment capacity and hence, they charge higher interest rates on them. So, if you wish to enjoy lower interest rates on a car loan, choose a shorter repayment tenure.
    • Explore and compare benefits offered by various lenders – If you wish to land a good deal on interest rates, it is essential for you to explore and compare the benefits offered by various car loan lenders. Doing so will help you understand which lenders are offering the best interest rates and in turn, help you decide on one lender.
    • Keep your debt-to-income ratio low – Debt-to-income ratio is a measure of the percentage of income the applicant spends on repaying loans and lenders consider this factor an important one while offering interest rates. If your debt-to-income ratio is lower, the chances of you securing a car loan at a lower interest rate are higher.
    • Maintain a healthy credit score – If you have a healthy credit score, lenders will be happy to offer you a car loan at lower interest rates. A credit score of over 750 is considered a healthy score by lenders. Many lenders will offer car loans even to those with a low credit score but they will charge a higher rate of interest. To ensure that you have a healthy credit score, check your credit scores at regular intervals by using the ‘Free Credit Score’ tool on BankBazaar. Doing this will help you take corrective steps to improve your credit score in case it is low and if you have a good credit score, it will let you approach the lenders with confidence.
     

    Get a car Loan Instantly!

    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!

     

    Eligibility for Availing a Car Loan in Mumbai

    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
    Age
    • Minimum age: 21 years
    • Maximum age: Between 60 years and 70 years at the time of loan maturity
    • Minimum age: Between 18 years and 21 years
    • Maximum age: Between 65 years and 75 years at the time of loan maturity
    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
     

    Documents Required

    To apply for a car loan in Mumbai, applicants should submit the following documents:

    • Proof of Identity (Aadhaar, Voter’s ID, Passport, Driving License, etc.)
    • Age proof (PAN Card, Passport, Aadhaar, etc.)
    • Address Proof (Passport, Aadhaar, Driving License, etc.)
    • Application form filled and duly signed
    • Recent bank statements
    • Rate list or proforma invoice
    • Income proof (Form 16, IT returns)

    *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.

    FAQs

    What are the types of cars that I can buy with the car loan?

    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.

    Can I get a loan on my existing car?

    Yes, many lenders will offer loans on your existing car if you have a good payment history with your lender.

    What are the ways in which I can repay my car loan?

    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.

    Do I need a guarantor to avail a car loan?

    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.

    What does monthly reducing balance mean?

    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.

    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.

  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.