Car Loan in Patiala with Flexible EMI and Competitive Rates
If you live in Patiala and wish to buy a car, a car loan can be availed from various banks and Non-banking Financial Companies (NBFCs). Lenders offer car loans at attractive interest rates in Patiala. In the case of new cars, the repayment tenure of the car loan may range between 12 months and 84 months.
Various lenders offer car loans at attractive interest rates in Patiala. Car loans are also provided for different types of cars ranging from a hatchback to an SUV. In Patiala, you can avail a car loan for a new car as well as for a used car. The repayment tenure of the car loan is flexible and the process to apply for the loan is also simple. You can apply for a car loan both offline and online.
If you are availing a car loan for a used car, the make, model, and type of car will determine the amount of loan that will be provided. Most banks and NBFCs provide a car loan for a used car only if it is less than 5 years old. However, certain lenders do not provide a loan if the car is more than 3 years old.
In Patiala, most NBFCs and banks offer car loans with a floating rate of interest. However, car loans with fixed interest rates are offered by a few lenders.
Interest Rate Offered by Top Lenders in Patiala
Bank | Rate if Interest for New Cars (p.a.) | Rate of Interest for Pre-Owned Cars (p.a.) | Processing Fee |
Axis Bank(New/Pre-owned Car Loan) | 9.025% to 11.30% | 14.80% to 16.80% | New Cars: Used Cars: |
9.50% to 13.97% (contact PNB for updated rates) | 9.50% to 13.97% (contact PNB for updated rates) | New Cars: Used Cards: | |
Punjab National Bank (Vehicle Loans) | RLLR linked: 8.55% to 9% MCLR linked: 9.20% | RLLR linked: 8.55% to 9% MCLR linked: 9.20% | Loan amount up to Rs.6 lakh: Loan amount above Rs.6 lakh: |
Bank of India (BOI Star Vehicle Loan) | 8.60% to 9.20% | 8.60% to 9.20% | 0.25% of the loan amount, maximum of Rs.5,000 and minimum of Rs.1,000 |
Bank of Maharashtra (Maha Super Car Loan/Mahabank Vehicle Loan Scheme for Old Car) | 8.85% to 9.60% | Contact the bank | 0.25% of the loan amount (minimum Rs.500) |
IDBI Bank(Auto Loan) | 8.85% to 9.45% | Contact the bank | Rs.1,000 plus tax |
ICICI Bank (New/Pre-Owned Car Loan) | 9.30% to 12.85% | 14.25% | New Cars: Used Cars: |
Union Bank of India (Vehicle Loan/Union Miles) | 9.05% | 12.05% | Rs.1,000 |
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 |
How to Fetch Low Interest Rates in Patiala
- Have a good credit score: It is of utmost importance that you have a good credit score. One of the main factors that determine the interest rate is your credit score. In case your credit score is low, the interest rates will be high, or your application will be rejected. Certain banks and NBFCs do not provide a car loan if your credit score is less than 650.
Lenders will also know that you are financially stable if the credit score is good. Lenders offer car loans at attractive interest rates if your credit score is good. Therefore, it is vital that you maintain a good credit history before applying for a car loan.
- Have a low debt-to-income ratio: Lenders will always access your debt-to-income ratio before providing a car loan. In case you have any pending Equated Monthly Installments (EMIs), it is advisable that you clear them as it would increase the chances of receiving the car loan. Lenders offer car loans at high interest rates if your debt-to-income ratio is high.
- Compare different lenders: It is important that you compare car loans from various NBFCs and banks before you opt for one. Certain lenders offer car loans at lower interest rates when compared to others. Various third-party websites such as BankBazaar.com can be used to compare car loans from various lenders. The features and benefits of the car loan can also be compared on these sites.
- Make a higher down payment: The loan amount provided by the lender will decrease if you make a higher down payment. Lenders also offer car loans at low interest rates in case you increase the down payment. Making a high down payment will also provide the impression that you are financially stable.
- Negotiate: In case you have a good relationship with your bank, the interest rate can be negotiated. The interest rate can be negotiated based on various factors such as the credit score, income status, and loan tenure.
- Choose a shorter tenure: The interest rates will be high in case you opt for a longer tenure. Banks usually offer low interest rates in case the repayment tenure is less than 5 years.
Even though the EMIs are low for a long repayment tenure, the interest rates will be high. Therefore, you will be paying a higher amount at the time of maturity. You can calculate the EMI by using the EMI Calculator provided by BankBazaar.com. You will need to enter basic details such as the processing fee, interest rate, tenure, and loan amount to calculate the EMI. The process to use the calculator is very simple.
Eligibility for Availing a Car Loan in Patiala
Parameters | Eligibility Criteria |
Age |
|
Annual Income | Your annual income must be at least Rs.2 lakh. |
Employment Criteria |
|
Documents Required
The documents that must be submitted by self-employed individuals and salaried employees are different. Apart from the application form, there are certain mandatory documents that must be submitted as well. The list of documents that must be submitted by salaried employees and self-employed individuals are mentioned in the table below:
Documents | Salaried Employees | Self-Employed Individuals |
Proof of Identity | Any government-issued card, Photo Credit Card, Driving License, Permanent Account Number (PAN) Card, Voter ID, Aadhaar Card, or Passport | Any government-issued card, Photo Credit Card, Driving License, Permanent Account Number (PAN) Card, Voter ID, Aadhaar Card, or Passport |
Age Proof | Any government-issued card, Passport, Driving License, LIC Policy, Birth Certificate, school leaving certificate | Any government-issued card, Passport, Driving License, LIC Policy, Birth Certificate, school leaving certificate |
Proof of Address | Government-issued card, Aadhaar Card, Driving License, Passport, Ration Card, Utility Bill | Shop & Establishment Act Certificate, MSME or SSI Registration Certificate, Current Account Statement, Sales Tax RC, Office Utility Bill |
Signature Verification | PAN Card, Passport, Banker's verification | PAN Card, Passport, Banker's verification |
Proof of Income | Bank statement, Form 16, Income Tax Returns (ITR) for the last 2 years, Salary Slips | Bank statement, Last 2 years ITR, Profit and Loss Statement, Balance Sheet, Income Statement |
Other Documents | Passport size photographs | Copy of Partnership, Passport size photographs |
FAQs
- Do I need to provide security or collateral to avail a car loan?
No, security or collateral need not be provided when availing a car loan. The car acts as security.
- Do I need to provide a co-borrower or loan guarantor to avail a car loan?
No, a guarantor or co-borrower need not be provided when availing a car loan. However, in case you do not meet the credit criteria, the lender may request a co-borrower or guarantor to be provided.
- Am I eligible for any tax benefits for availing a car loan?
No, you cannot avail any tax benefits for availing a car loan.
- Can I include my spouse's income when calculating the loan amount?
Yes, you can include your spouse's income when calculating the loan amount.
- Can 100% financing be availed on a used car?
Yes, few lenders offer 100% finance on the ex-showroom price of certain models. However, you must meet the eligibility criteria to avail 100% finance.
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