Noida Car Loan

Noida is a leading industrial centre located in Uttar Pradesh. The metropolis is also known as New Okhla Industrial Development Authority and is a fast growing city providing opportunities for a number of different companies, BPOs, industrial offices, etc. This has brought in a large influx of people and these people often purchase four-wheelers of their own to commute in the city. But sometimes individuals find it difficult to come up with the capital required to purchase their dream vehicle. In these cases, individuals often approach a bank or financial institution to avail a car loan to make their purchase. Car loans are offered at affordable interest rates which vary across banks that are operating in Noida. Let us take a look at the banks in Noida that offer car loans.

Car Loans Offered By Various Banks in Noida

A car loan is a secured loan that is offered by financial institutions and banks and is used for the purchase of a new or used car. Here, the car that is purchased acts as the collateral. Car loans are offered at interest rates which vary from one bank to another. Interest rates offered depend on the applicant's credit score. Major banks and NBFCs that offer car loans in Noida are ICICI Bank, TVS Credit Services, Oriental Bank of Commerce, Sundaram Finance, Capital First, HDFC Bank, Axis Bank, Dena Bank, AU Small Finance Bank, Mahaveer Finance India Limited, Jammu and Kashmir Bank, Federal Bank, Allahabad Bank, Bank of India, Canara Bank, Bank of Maharashtra, IDBI Bank, Central Bank of India, State Bank of India, Indian Bank, Andhra Bank, Union Bank of India, L&T Finance Limited, Reliance Commercial Finance, Yes Bank and many more.

Steps involved in availing a Car Loan in Noida

When applying for a car loan at a bank in Noida, there are a few things that an individual will have to keep in mind to ensure they choose the right car loan option. Here are a few steps that an individual needs to follow when applying for a car loan with a bank or financial institution in Noida.

• Identifying a Bank: There are a number of different banks that operate in Noida which offer car loans at different interest rates. It can be a hassle to go to each one of these banks to look for the ideal car loan option that works for a person. An individual could visit a banking portal like BankBazaar which offers a consolidated look at all the banks which offer car loans in Noida. An individual should apply for a car loan with a bank that offers a car loan amount that’s enough to purchase his/her dream car. Search for the bank that offers the lowest rate of interest on the car loan. Other factors that need to be considered are processing fees, loan tenure, loan amount, prepayment charges, etc. An individual can even use a Car Loan EMI Calculator to determine the amount that they would have to pay as an EMI every month.
• Submitting Documents: The bank will require an individual’s documents to determine their capability of repaying a car loan. An individual who intends on applying for a car loan will have to produce certain documents like the applicant’s salary slip, residence proof, Form 16, PAN Card, driving license, passport, etc. The car loan applicant can either submit these documents at the nearest branch of the bank or online.
• Verification: Once the bank receives the applicant’s documents, the bank will verify them to ensure there are no discrepancies. If there are any discrepancies, then the bank will notify the applicant of the same. A field investigator will visit the applicant’s home to check and confirm that the details provided by the applicant are true.
• Loan Approval: Once the investigator verifies the applicant’s documents and ensures there are no discrepancies with the facts that were provided, the bank will sanction the loan amount. Once the loan has been approved, the bank will send a draft of the car loan to the dealer after the applicant has signed the agreement.

Eligibility Criteria to Avail a Car Loan in Noida

The eligibility criteria for car loans offered by various banks in Noida vary depending on a number of factors like if the applicant is salaried, self-employed individuals and professionals (partnership firms), self-employed individuals and professionals (private limited companies) or self-employed individuals and professionals (sole proprietorship). Some of the basic eligibility criteria that need to be met by an applicant are:

• The car loan applicant should be at least 21 years old when applying for a car loan and should not be older than 65 years when the loan tenure comes to an end.
• The applicant should be in a business or should be working with their current employer for a period of 2 years and 1 year respectively.
• The applicant should earn a minimum of Rs.2 lakh p.a. This criteria varies from one bank to another and has a large effect on the loan amount that is sanctioned.
• The applicant should either have a permanent address or should be a residing in their current residence for a period of 1 year.
• Telephone or mobile connections will be required

Documents Required to Avail a Car Loan in Noida

The documents that are required by the bank or lender are needed to establish the authenticity of the applicant and the details that they have provided. The documents that a car loan applicant will have to submit are listed below:

• Proof of Age: The car loan applicant can provide any bill like a telephone bill, gas connection bill, etc. or a government sanctioned document or any other valid KYC document.
• Income Proof: The car loan applicant can submit their salary slips for the previous three months along with bank statements for at least the last six months. Self-employed individuals will have to submit their audited bank statements for the previous six months.
• Address Proof: The individual can provide any government sanctioned document or an utility bill like a telephone bill, gas connection bill, etc. or any other valid KYC document.
• Proof of Employment: The car loan applicant will have to submit a copy of their appointment letter that they have received when joining with the current company that they're working for. Self-employed individuals would also have to provide their partnership deeds or business establishment documents.
• Tax Proof: The applicant would have to submit their IT returns or Form 16 documents for the past 2 years when applying for a car loan in Noida.

How to get a Car Loan at a low-interest rate in Noida

There are a few things that need to be followed when applying for a car loan to ensure the lender gives the applicant the best rate of interest possible:

• Credit Score: Before applying for a car loan with a bank or financial institution in Noida, the applicant will have to make sure that their credit score is well above average. Agencies like CIBIL, which is an authorized credit information company that operates out in India, can help determine your credit score. A credit score 750 and above is considered to be a good credit score.
• Choose Wisely: There are a number of different banks and lenders that offer car loans at different interest rates in Noida. However, it is advisable that the applicant take their time to make their decision. An easy way to do this would be to compare aspects of a car loan like interest rate, processing fee, tenure, etc. of various car loans offered by different banks in Noida. Banking websites like BankBazaar provide all the information that a car loan applicant would require.
• Assess Your Needs: It is important that the applicant ensures that they do not apply for a car loan that causes a financial strain on the applicant’s monthly income. It should be noted that a car is a depreciating asset and applying for a large car loan amount would not be wise if you do not have the monthly income to pay for the EMIs.

Car Loan Interest Rates in Noida 2018

Interest rates and offers are subject to change with market rates and without any prior notice from the bank

*OTF-One Time Fee

Noida Car Loan FAQs

1. How do I apply for a car loan?

   You can apply for a car loan on the main website of the bank or you can even visit a baking portal like BankBazaar where you can compare various car loan options that are offered in Noida. You can even apply for a car loan by visiting the nearest branch of the bank.

2. What is the tenure of a car loan that is offered by a bank?

   Banks generally offer car loans for a period of 1-5 years. The loan tenure depends on the type of car that’s being purchased – the make and model of the car. Banks and lenders also offer car loans for a period of 7 years.

3. What happens if I default on an EMI payment?

   A car loan applicant should make it their duty to ensure they do not miss out on any EMI payments. If you do miss out on a payment, get in touch with the bank and explain why you have missed out on your payment. Banks and lenders will not deem you as a defaulter immediately. But if this is repeated time and again, your credit score can get seriously affected.

4. Can I apply for a car loan to buy a used car?

   Yes, you can. Used Car Loans are applied for quite often as people have begun purchasing used cars more often than new cars.

5. Are there any tax benefits that come with a car loan?

   Unlike home loans, car loans do not offer any tax benefits.