Srinagar is the summer capital of Jammu & Kashmir and has a thriving economy. Residents in Srinagar consider owning a car a necessity rather than as a luxury as they constantly need to commute within the city for business, work, or study. However, not everyone can afford to buy a car paying the full amount in cash which is why many top lenders in the country offer car loans to people in Srinagar. These car loans can be availed at attractive interest rates and can be repaid in flexible equated monthly instalments (EMIs).
|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|
To be eligible for a car loan in Srinagar, you will need to fulfil the below-mentioned 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|
|Minimum Annual Income||Rs.3 lakh|
|Business or Job Stability||
|Other Requirements||Should have a telephone/mobile connection|
The documents required for a car loan in Srinagar will depend on your type of income and the lender. However, the basic documentation required has been given below:
|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|
Answer: Yes, you can foreclose your car loan by paying the outstanding loan amount. Many lenders will charge you a penalty on foreclosing the loan and hence, you should check for the charges before you decide to foreclose your loan.
Answer: No, you do not need to provide any security for availing a car loan as the vehicle itself will be considered as a security. The vehicle will be hypothecated to the lender which means that if you default on your payments, the lender will have the authority to seize the vehicle and auction it to recover the outstanding loan amount.
Answer: You will need a minimum credit score of 750 to get a car loan as most lenders will require you to have this score. With your score, you may find it difficult to get a car loan and even if you manage to, you may be charged a higher interest rate.
Answer: Yes, there are some lenders such as Federal Bank and State Bank of India (SBI) who offer car loans to NRIs. However, there are conditions applicable to them. For instance, the NRI can apply for a car loan as a guarantor with a resident Indian as a co-applicant.
Answer: Processing fee on a car loan needs to be paid upfront, during the time of application. However, other charges such as stamp duty charges, documentation charges, etc., are chargeable after the loan application has been suspended.
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