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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.
| 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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Some of the various ways by which you can get a car loan at a low rate of interest are mentioned below:
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.
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 |
|
|
| 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. |
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:
|
One of the below-mentioned documents must be submitted:
|
| Bank Statement | Last 6 months | Last 6 months |
| Address Proof |
One of the below-mentioned documents must be submitted:
|
One of the below-mentioned documents must be submitted:
|
| Income Proof | Latest salary slip and Form 16 | Latest Income Tax Returns (ITR), Audited Balance Sheet, and last 2 years Profit & Loss Account |
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.
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.
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.
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.
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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