• Patiala Car Loan

    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.
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    Car Loan in Patiala – Overview

    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: Rs.3,500 to Rs.5,500 Used Cars: 1% of loan amount or Rs.6,000
    Yes Bank 9.50% to 13.97% (contact PNB for updated rates) 9.50% to 13.97% (contact PNB for updated rates) New Cars: Up to 1% of loan amount or Rs.10,000 Used Cards: Up to 2% of loan amount or Rs.6,000
    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: Rs.1,000 Loan amount above Rs.6 lakh: Rs.1,500
    Bank of India (BOI Star Vehicle Loan) 8.60% to 9.20% 8.60% to 9.20% Minimum of Rs.1,000 and maximum of Rs.5,000 However, until 31 December 2019, the processing fee has been waived for new car loans
    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) However, until 15 November 2019, the processing fee has been waived for new car loans
    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: Rs.3,500 to Rs.8,500 Used Cars: 2% of the amount of loan that has been availed or Rs.15,000
    Union Bank of India (Vehicle Loan/Union Miles) 9.05% 12.05% Rs.1,000
    Canara Bank 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
    Corporation Bank 8.75% for loan amounts up to Rs.50 lakh 9.25% for loan amounts above Rs.50 lakh 8.75% for loan amounts up to Rs.50 lakh 9.25% for loan amounts above Rs.50 lakh 1% of the loan amount subject to a minimum of Rs.1,000

    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
    • You should not be less than 18 years old when you apply for the loan.
    • You must not be more than 70 years old when at the time the loan matures.
    Annual Income Your annual income must be at least Rs.2 lakh.
    Employment Criteria
    • Self-employed individuals must have a running business for at least 2 years to 3 years.
    • Salaried individuals must be working in the current company for at least a year.

    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

    1. Do I need to provide security or collateral to avail a car loan?
    2. No, security or collateral need not be provided when availing a car loan. The car acts as security.

    3. Do I need to provide a co-borrower or loan guarantor to avail a car loan?
    4. 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.

    5. Am I eligible for any tax benefits for availing a car loan?
    6. No, you cannot avail any tax benefits for availing a car loan.

    7. Can I include my spouse’s income when calculating the loan amount?
    8. Yes, you can include your spouse’s income when calculating the loan amount.

    9. Can 100% financing be availed on a used car?
    10. 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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