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  • Varanasi Car Loan

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  • You can apply for a car loan in Varanasi from various banks. Loans are provided for new cars as well as for used cars. Car loans are offered at attractive interest rates and come with a repayment tenure ranging between 12 months and 84 months. The processing fee that is levied may also be minimal.
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    Varanasi Car Loan - Overview

    Car loans at attractive interest rates are offered by various banks and Non-banking Financial Companies (NBFCs) in Varanasi. You can avail a loan for a new car as well as for a used car. The process to apply for a car loan in Varanasi is simple and can be done online. Banks and NBFCs in Varanasi offer car loans with a flexible repayment tenure ranging between 12 months and 84 months.

    In case you wish to buy a used car, the make, model, and type of car play a vital role before a loan is provided. Banks and NBFCs also offer car loans on used cars only if it is less than 5 years old. However, certain lenders do not provide loans if the car is more than 3 years old. Usually, the maximum repayment tenure of a used car loan is 60 months.

    In the case of new cars, the amount of loan that is provided varies from bank to bank. Certain banks offer up to 90% of the on-road price of the car, while others offer a maximum of 85%. The maximum loan amount that is provided also depends on the lender and the car.

    Interest Rate Offered by Top Lenders in Varanasi

    Bank Rate of Interest for New Cars (p.a.) Rate of Interest for Pre-Owned Cars (p.a.) Processing Fee
    HDFC Bank (New Car Loan/Pre-owned Car Loan) 9.50% to 10.25% (rack interest) 13.75% to 16% (rack interest) Minimum of Rs.3,000 and maximum of Rs.10,000
    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
    State Bank of India (Auto Loans) 8.80% to 9.50% 10.50% to 12% Contact the bank
    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
    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
    Union Bank of India (Vehicle Loan/Union Miles) 9.05% 12.05% Rs.1,000
    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
    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
    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

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    How to Fetch Low Interest Rates in Varanasi

    Some of the various ways by which you can get a car loan at a low rate of interest are mentioned below:

    • Pay a higher down payment: The interest rates are generally low if you make a higher down payment. Apart from reducing the risks, lenders will get the impression that you are financially stable if you pay a higher down payment.
    • Have a good credit score: When you avail a car loan, the credit score is one of the main factors that is considered. Maintaining a good credit score can help in getting a car loan at a low rate of interest.

    In case your credit score is low, the rate of interest will be high, or your loan application will be rejected. Lenders usually provide loans with a low rate of interest if your credit score is good as it proves that you are financially stable.

    • Compare: It is very important that you compare various car loan offers before choosing one. The interest rates may vary from bank to bank. You can use various third-party websites such as BankBazaar.com to compare car loan offers from various banks and NBFCs.
    • Opt for a shorter tenure: The rate of interest will be high in case you opt for a longer tenure. Lenders usually offer car loans at low interest rates if the tenure is less than 5 years. Even if your Equated Monthly Installments (EMIs) are low for a longer tenure, you will end up paying more because the interest rates are high. You can use the Car Loan EMI Calculator provided by BankBazaar.com to calculate your EMI.
    • Maintain a low debt-to-income ratio: Before providing a loan, all lenders check your debt-to-income ratio. It is better to clear all your pending EMIs before opting for a car loan. The rate of interest will be low in case you have minimal or no EMIs.

    Eligibility for Availing a Car Loan in Varanasi

    The eligibility criteria that must be met by self-employed individuals and salaried employees differ and is mentioned in the table below:

    Particulars Salaried Employees Self-Employed Individuals
    Age Criteria
    • Minimum of 21 years when you opt for the loan.
    • Maximum of 60 years when the loan matures.
    • Minimum of 21 years when you opt for the loan.
    • Maximum of 70 years when the loan matures.
    Income Criteria Annual income of at least Rs.3 lakh Yearly income of at least Rs.3 lakh
    Stability At least 1 year of job experience with your current employer and total work experience of at least 2 years. Business experience of at least 2 years.

    Documents Required

    Self-employed individuals and salaried employees must submit different documents when they avail a car loan. 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
    Identity Proof One of the below-mentioned documents must be submitted:
    • Aadhaar Card
    • Driving License
    • Voters ID Card
    • Permanent Account Number (PAN) Card
    • Passport
    One of the below-mentioned documents must be submitted:
    • Driving License
    • PAN Card
    • Voters ID Card
    • Aadhaar Card
    • Passport
    Bank Statement Last 6 months Last 6 months
    Address Proof One of the below-mentioned documents must be submitted:
    • Aadhaar Card
    • Passport Copy
    • Life Insurance Policy
    • Voters ID Card
    • Driving License
    • Telephone Bill
    • Ration Card
    • Electricity Bill
    One of the below-mentioned documents must be submitted:
    • Life Insurance Policy
    • Telephone Bill
    • Voters ID Card
    • Ration Card
    • Sales Tax Certificate
    • Shop & Establishment Act Certificate
    • Electricity Bill
    • Passport Copy
    • Driving License
    • Aadhaar Card
    • Shop & Establishment Act Certificate
    Income Proof Latest salary slip and Form 16 Latest Income Tax Returns (ITR), Audited Balance Sheet, and last 2 years Profit & Loss Account

    FAQs on Varanasi

    1. Is it possible to pre-pay the entire loan amount?
    2. Yes, after a certain duration you can pre-pay the entire loan amount. The duration after which the loan amount can be cleared may vary from bank-to-bank.

    3. Is it mandatory for me to provide a guarantor when a car loan is availed?
    4. No, it is not mandatory to provide a guarantor when availing a car loan. However, you may have to provide one in case the credit criteria are not met.

    5. Is it mandatory for me to provide collateral or security when a car loan is availed?
    6. The car that is purchased acts as the security when you avail a car loan. Therefore, it is not mandatory for you to provide collateral or security.

    7. Is it possible to negotiate interest rates?
    8. Yes, the car loan rate of interest can be negotiated. In case your relationship with the bank is good, they may reduce the rate of interest.

    9. How much finance will I be eligible for?
    10. The finance options will vary from bank to bank. Most lenders offer up to 90% of the on-road price of the car as a loan. However, 100% finance is offered by certain lenders.

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