Ranchi Car Loan Options with Easy Eligibility and Low EMIs
Apply for new and used car loans in Ranchi from some of the top banks. Enjoy flexible repayment tenures up to 7 years (8 years on select models) on new car loans and up to 5 years on pre-owned car loans. Interest rates start from 8.55% and processing fees are as low as Rs.500.
Residents of Ranchi can choose between new car loans and used car loans at low interest rates. Banks and financial institutions offer floating-rate as well as -fixed-rate packages. Floating-rate packages are usually pegged to the bank's Marginal Cost of funds-based Lending Rate (MCLR) or Repo Linked Lending Rate (RLLR).
Interest rates on used car loans are usually higher when compared to new car loans. You can get up to 90% financing on new car loans and up to 100% on used car loans. However, note that banks do not offer funding for used cars over 5 years old. Some banks have a cap of 3 years. Car loans come with the option of part and full prepayments. Charges may be applicable for the same.
Interest Rates Offered by Top Lenders on Car Loans in Ranchi
Here are the interest rates and processing fees of some of the top banks in Ranchi, Jharkhand:
Bank | Interest Rate for New Cars (p.a.) | Interest Rate for Used Cars | Processing Fee |
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 |
State Bank of India (Auto Loans) | 8.80% to 9.50% | 10.50% to 12% | Contact the bank |
Canara Bank (Canara Vehicle) | 8.75% to 11.30% | 8.75% to 11.30% | 0.25% of loan amount (min. Rs.1,000; max. Rs.5,000) |
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 |
Central Bank of India(Cent Vehicle) | 8.90% | 10.20% | Premium account holders: Nil Diamond account holders: 60% concession Gold account holders: 50% concession Silver account holders: 40% concession |
8.80% | 9.90% or 10.80% | 1% of the loan amount (max. Rs.1,500) | |
HDFC Bank(New Car Loan/Pre-owned Car Loan) | 9.75% to 10.60% (rack interest) | 13.75% to 16% (rack interest) | 0.40% of loan amount (min. Rs.3,000; max. Rs.10,000) |
Indian Overseas Bank (Vehicle Loans - Pushpaka) | 8.95% | 9.95% or 10.95% | Loan amount up to Rs.5 lakh: 0.50% (min. Rs.500) Loan amount above Rs.5 lakh: 0.60% (max. Rs.10,000) |
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 |
How to Fetch the Lowest Interest Rates on Car Loans in Ranchi
Some of the various ways by which you can avail a car loan at a low interest rate are mentioned below:
- Choose a shorter tenure: The interest rates will be high in case you opt for a longer repayment tenure. Banks usually offer low interest rates for car loans with a tenure of less than 5 years.
In the case of a long tenure, the Equated Monthly Instalments (EMIs) will be low but the interest rates are high. Therefore, you will end up paying more for the car. You can use the Car Loan EMI Calculator provided by BankBazaar.com to check your EMI. You will need to enter basic details such as the processing fee, interest rate, loan tenure, and loan amount to calculate the EMI.
- Increase down payment: Lenders provide car loans at low interest rates if the down payment is high because it provides them with an impression that you are financially stable. The risks of providing the loan also reduce if the down payment is high.
- Maintain a low debt-to-income ratio: Every lender will check your debt-to-income ratio before providing a car loan. In case you have any pre-existing EMIs, it is better to clear them before applying for a car loan. The rate of interest provided by the lender may reduce if you have minimal or no pending EMIs.
- Compare: It is important that you compare car loans offered by various banks and Non-banking Financial Companies (NBFCs) before opting for one. Depending on the bank, the interest rate will vary. The benefits and features of the car loan may also vary from bank to bank. There are various third-party websites, such as BankBazaar.com, where car loans offered by various lenders can be compared.
- Maintain a high credit score: Your credit score is one of the most important factors that is considered when determining the rate of interest. In case you have a low credit score, the interest rate will be high, or your application will be rejected.
Certain banks require you to have a credit score of at least 650 to be eligible to avail a car loan. A good credit score also shows that you are financially stable. You can maintain a good credit score by paying your bills on time.
Eligibility for Availing a Car Loan in Ranchi
The eligibility criteria that must be met will vary for salaried employees and self-employed individuals.
Particulars | Salaried Employees | Self-Employed Individuals |
Age Criteria |
|
|
Income Criteria | Your annual income must be at least Rs.3 lakh. | Your yearly income must be at least Rs.3 lakh. |
Stability | You must have worked for at least 2 years and must be employed in your current company for at least 1 year. | You should be in business for at least 2 years. |
Documents Required
The documents that must be submitted by salaried employees and self-employed individuals will differ. Apart from the application form, certain mandatory documents must be submitted. The list of the documents that must be submitted are mentioned in the table below:
Documents | Salaried Employees | Self-Employed Individuals |
Identity Proof |
|
|
Income Proof | Form 16 and latest salary slip | Latest Income Tax Returns (ITR), Audited Balance Sheet, and last 2 years Profit & Loss Account |
Address Proof |
|
|
Bank Statement | Last 6 months | Last 6 months |
FAQs on Ranchi Car Loan
- Do I have the option to pre-pay the entire loan amount?
Yes, you can pre-pay the entire loan amount. However, the pre-pay option is available only after a certain duration.
- How much finance will I be eligible for?
Depending on the bank, the finance options will vary. Most banks offer finance up to 90% of the value of the car. However, certain lenders offer 100% finance.
- Can I negotiate the interest rates?
Yes, you can negotiate the rate of interest. Car loan interest rates are not fixed. In case you have a good relationship with the bank and all your previous payments have been paid on time, banks might consider reducing the interest rate.
- Is it mandatory to provide collateral or security when I avail a car loan?
No, it is not mandatory to provide security or collateral when you avail the car loan. The vehicle acts as the security.
- Is it mandatory for a guarantor to be provided when I avail a car loan?
Providing a guarantor is not mandatory when you avail a car loan. However, the lender may request for a guarantor to be provided if you do not meet the credit criteria.
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