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  • Rajkot Car Loan

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  • If you wish to avail a car loan in Rajkot, you can choose from the many top lenders in the country who offer car loans at affordable interest rates starting from 9.05% and to be repaid in a maximum of 84 months. You will have to pay a processing fee ranging between zero and Rs.25,000 on the car loans.
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    Rajkot Car Loan – Overview

    Rajkot is one of the largest cities in Gujarat, and one of the fastest growing cities in the world. Owning a car in the city has become more of a necessity as residents of the state need to commute to and from the city for work, study, or business. However, not all can afford to buy a car by paying the full amount which is why many lending institutions offer car finance to the residents of the city at competitive interest rates and which can be repaid in equated monthly instalments (EMIs).

    The amount of EMI on your car loan will depend on the loan amount, tenure, and the interest rate. If you wish to know the amount of EMI, you can calculate the same by using the EMI Calculator tool.

    Interest Rate Offered by Top Lenders in Rajkot

    Name of the Bank Interest Rate Processing Fee
    ICICI Bank 9.30% to 12.85% Rs.3,500 to Rs.8,500
    Axis Bank 9.05% to 11.30% Rs.3,500 to Rs.5,500
    State Bank of India 8.80% to 12.05% Nil
    Indian Bank 9.10% Up to Rs.10,236
    HDFC Bank 9.50% to 10.25% Rs.3,000 to Rs.10,000
    IDBI Bank 9.20% to 9.90% -
    Federal Bank 9.25% Rs.1,500 to Rs.2,500
    Canara Bank 8.70% to 11.30% Rs.1,000 to Rs.5,000
    Allahabad Bank 8.60% to 10.85% Up to Rs.8,696
    Andhra Bank 8.80% Rs.1,000 to Rs.25,000

    How to Fetch Lower Interest Rates in Rajkot

    • Choose a shorter tenure – Choosing a short repayment tenure on your car loan will not only help you pay off your loan quicker but will also help you fetch lower interest rate. This is because the risk associated with lending to you is lower and hence, may lead to the lender offering you a lower interest rate. A short repayment tenure will also save you from paying high interest over the loan tenure.
    • Maintain a healthy credit score – A good credit score is an indication of your good repayment record and hence, if you have a credit score of around 800 and above, your chances of securing a car loan with a low interest rate are higher. However, a credit score of 750 is the minimum score that most lenders look for but the higher your score, the higher are your chances of getting a lower interest rate. To maintain a healthy score, ensure that you check your credit score regularly.
    • Negotiate with your existing lender – If you have a good transaction history with your existing lender, you can negotiate with them to give you a car loan at a lower interest rate. Most times, they will be happy to acknowledge your request.
    • Compare all car loan options – Before you decide on a lender, ensure that you have checked out all the car loan options offered by various lenders and compare them. Doing that will help you make an informed decision. If a low interest rate is what you are looking for, you can choose the lender that offers the lowest interest rate on its car loan. However, we advise you to look out for other benefits as well.
    • Keep a low debt-to-income ratio – A debt-to-income ratio is the percentage of your gross monthly income that is spent on paying your EMIs and a low ratio indicates that you can pay your EMIs for your car loan. Lenders are likely to consider this positive and offer you a car loan with a lower interest rate.

    Eligibility Criteria to Avail a Car Loan in Rajkot

    Residents of Rajkot who wish to avail a car loan need to satisfy the below-given eligibility criteria

    Who Can Avail Salaried, self-employed individuals and professionals of partnership firms, private and public limited companies, and sole proprietorships
    Minimum Age 21 years
    Maximum Age
    • Salaried – 60 years at the end of the loan tenure
    • Self-employed – 65 years at the end of the loan tenure
    Minimum Annual Income Rs.3 lakh
    Business or Job Stability
    • Salaried – Worked for at least 2 years out of which 1 year should be with the current employer
    • Self-employed – Should be in the same line of business for at least 2 years
    Other Requirements Should have a telephone/mobile connection

    Please note that the eligibility criteria may vary from lender to lender.

    Documents Required to Avail a Car Loan in Rajkot

    The documents required for availing a car loan in Rajkot will depend on the type of income and vary from lender to lender. However, the basic documents that most lenders require you to furnish have been listed below:

    Documents Salaried Self-employed
    Proof of Identity Passport/PAN Card/Aadhar Card/Driving License/ Voter’s ID PAN Card/ Aadhaar Card/ Passport/Voter’s ID/Driving License
    Address Proof Ration Card/ Aadhar Card/ Passport/ Driving License/Telephone Bill/Electricity Bill/Life Insurance Policy Ration Card/ Aadhar Card/ Passport/ Driving License/Telephone Bill/Electricity Bill/Life Insurance Policy/ Sales Tax Certificate
    Income Proof Form 16 and latest salary slips Latest Income Tax Returns/Audited Balance Sheet/Profit and Loss Account
    Others Bank statement for the last 6 months Bank statement for the last 6 months

    FAQs on Car Loans in Rajkot

    1. I am a student studying in Rajkot. Am I eligible for a car loan?
    2. Answer: Unfortunately, no as to be eligible for a car loan, you should have a steady source of income.

    3. Do I need to provide any security for availing a car loan in Rajkot?
    4. Answer: No, you need not provide any security or collateral for availing a car loan as the vehicle will be hypothecated to the bank. You will get the ownership in your name only after you have repaid the entire loan amount.

    5. Can I close my loan before the end of the loan tenure?
    6. Answer: You can foreclose your car loan before the completion of your loan tenure by paying the entire loan outstanding amount and foreclosure charges, if any. However, some banks allow foreclosure only after 6 or 9 EMI payments, depending on the bank. So, it is advised that you check for these conditions before you decide to foreclose your loan.

    7. Are NRIs eligible to get a car loan in Rajkot?
    8. Answer: Non-Resident Indians (NRIs) can get a car loan in Rajkot from lenders like State Bank of India (SBI), and Federal Bank. However, conditions are applicable on them such as the NRI can apply for the car loan only as a guarantor and have a resident Indian as a co-applicant. There may be other conditions that are applicable for which you can get in touch with the lender directly.

    9. I missed out on one EMI payment. Will that affect my credit score?
    10. Answer: Missing out on paying your EMIs can affect your credit score badly which, in turn, will hamper your chances of securing any kind of loan in the future. Hence, we recommend that you avail a loan only when you have assessed your affordability. Since you have already missed out on paying one EMI, we would suggest you not to miss paying any more EMIs. If you miss 6 EMI payments consecutively, the lender has the authority to seize your vehicle and auction it to recover your loan outstanding amount.

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