Instant Auto Loans

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Besides the steady surge in Indian economy, revival of the Indian middle class has also played a major role in triggering the auto sector to release new vehicles in the markets. Automobiles in India are selling like hot cake, because of the rise in the purchasing power of average Indian.

Considering the growing requirement for the vehicles ranging from four wheelers to two wheelers, major chunk of loan seekers choose to procure instant auto loans in India. Auto loans come with certain advantages such as tax deduction, etc. Hence, several factors should be taken into consideration before purposing such kind of loans.

Most of the banks in India offer auto loans on the basis of the loan seeker’s earnings. Generally, the sum provided by the lender is 3-4 times of the yearly income of the salaried claimant. But in case of individuals of businessmen the amount is 6 times that of yearly earnings. In a broad framework, any claimant can procure 90 to 100% of the entire credit. In fact, credit can also be availed to buy a used car.

Instant Auto Loans in India are like tenable loans as the proposed loan seeker would buy the auto as a guarantor, which would serve as an assertion for the loan provider. The auto credential would be duly returned to the claimant, when he has reimbursed the total loan amount.

Interests on Instant Auto loans are given on the basis of loan seekers existing prevailing situations, earnings and historical records. Conversely, if the loan seeker provides a huge sum as a deposit, it is guaranteed that the loan provider will sanction the auto loan at reasonably low interest rates.

Documents Required For Instant Auto Loans in India

While availing for instant auto loans some significant documents are required. Some of them are mentioned as under:
  • Identity Proofs in the form of PAN Card, Driving License, Passport or Voters ID
  • Monthly income evidence in the form of salary receipt for salaried persons and last three years of IT income for businessmen
  • Proof of Address in the form of Electricity Bill, Ration Card, Life Insurance Policy, etc.
  • Bank Passbook transactions of the last 6 months

Rate of Interest for Instant Auto Loans

Below is the comprehensive table of interest rates, loan terms and processing charges allocated by various banks in India for Instant Auto Loans plans:

Name of the BankLoan Term
(in years)
Rate of InterestProcessing Charges
ABN Amro315%Rs 500 to Rs 1000
Andhra Bank312.75%Rs 250 to Rs 1000
Axis Bank315.5% to 11.0%NA
Allahabad Bank311.25% to 10.75%NA for salaried individuals and for self employed: Rs 2,000/-
Bank of India39.75% to 1.10%From Rs.750/- to Rs.2500/-
Canara Bank311.0%From Rs.250/- to Rs.500/-
Central Bank of India310.0%1% of the borrowed amount
HDFC Bank312.75% to12.25%NA
ICICI Bank314.25%NA
Punjab National Bank311.0% to 10.5%0.50% of the borrowed amount
Indian Overseas Bank312.0%Rs. 134/- approx
UCO Bank311.75%1% of the borrowed amount
Union Bank of India311.0%Rs 500 to Rs 1000
State Bank of Travancore311.25%0.50% of the borrowed amount

Last Updated on 6th July 2011