All Banks Car Loan Interest Rates Comparison

In today’s time personal vehicle has become a need more than a status symbol. It is an important asset that provides the comfort of going anywhere anytime. Also, it is the matter of pride for many. There are people who are fond of cars and love to drive the latest model. Some just want to add on to their collection of cars. But since purchasing a car involve huge cost people get the funds arranged by availing the credit. A specific loan product named car loan is there to help the people fulfill their dream of car. This loan provides the facility to buy the car first and pay for it later. The lender pays the required amount to the dealer on behalf of the buyer. The car buyer has to pay back this amount in installment along with the interest charged on the loan amount. Car loan facility is provided by various banks and non - banking financial institutions. It becomes important for the customer to search the best lender and this can be done by comparing the product of various lenders. The comparison of all banks car loan interest rates become necessary to get the car financed at the lowest rates.

Various lenders have different lending policy and eligibility criteria. The borrower should check each and every detail minutely before applying for the loan as this will help in knowing the hidden fees and charges. Filling the application after checking the eligibility criteria prevents the application from being rejected and doesn’t impact your CIBIL score adversely. Based on certain factors the lender evaluates the applicant’s eligibility to avail the loan. If the profile matches the eligibility norms set by the bank then the loan application is approved. The factors on the basis of which eligibility is decided:

• Income of the applicant

• CIBIL Score

• Debt to income ratio

• Loan amount & down payment

• Age of the vehicle

• Loan tenure

If everything is according to the guidelines prepared, the customer can get the car financed from the particular institute. If the application is approved the customer has to pay the processing fee and documentation charges. Post GST there is a change in the service tax that the applicant has to pay. Earlier along with the processing fee the borrower has to pay service tax of 15% which now has been replaced with 18% GST. So there is a hike of 3% in all the fees and charges that include service tax. Whereas, all banks car loan interest rates remain same. The rates are not affected by the implementation of GST. Therefore, the borrowers don’t have to about their EMI payment. The lending rate being same, no extra amount is to be paid towards the repayment.

The borrowers confused that whether to avail car loan under the new tax regime or not, no major change has occurred in the loan segment. There is no need to postpone your plan of having a new car. Instead, the revision has tax rate have led to reduction in the price of various car models. The customer can enjoy the benefit of this price deduction and attractive rate of interest to accomplish their dream.

To avail the advantage of CL, the potential buyer has to fill the application form of the particular bank or the financial company. The application form can be filled either online or offline. The customer can visit the nearest branch. Or the entire application process can be carried online. Login the official website of the particular lender and fill the online application form. The form comprises of the following sections:

1. Personal Details

2. Income Details

3. Loan Details

4. Details of car model

5. Details of co-applicant

6. Signature

Documents Required for Car Loan:

Along with the application form the customer has to submit certain documents that are used for verification. The following documents are requisite documents:

• Age proof

• ID proof

• Application form

• Photograph

• Residence proof

• Income proof

• Bank statement

• Signature verification proof

• Pro-forma Invoice or Rate List

Without waiting for anything just go grab the best deal and hold the keys of your favourite car. Getting car becomes easy with the availability of car loan. Also, with information of all banks car loan interest rates available on net it is simple to search for the best deal.