Instant Auto Loans
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.
Last Updated on 6th July 2011
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 Bank | Loan Term (in years) | Rate of Interest | Processing Charges |
|---|---|---|---|
| ABN Amro | 3 | 15% | Rs 500 to Rs 1000 |
| Andhra Bank | 3 | 12.75% | Rs 250 to Rs 1000 |
| Axis Bank | 3 | 15.5% to 11.0% | NA |
| Allahabad Bank | 3 | 11.25% to 10.75% | NA for salaried individuals and for self employed: Rs 2,000/- |
| Bank of India | 3 | 9.75% to 1.10% | From Rs.750/- to Rs.2500/- |
| Canara Bank | 3 | 11.0% | From Rs.250/- to Rs.500/- |
| Central Bank of India | 3 | 10.0% | 1% of the borrowed amount |
| HDFC Bank | 3 | 12.75% to12.25% | NA |
| ICICI Bank | 3 | 14.25% | NA |
| Punjab National Bank | 3 | 11.0% to 10.5% | 0.50% of the borrowed amount |
| Indian Overseas Bank | 3 | 12.0% | Rs. 134/- approx |
| UCO Bank | 3 | 11.75% | 1% of the borrowed amount |
| Union Bank of India | 3 | 11.0% | Rs 500 to Rs 1000 |
| State Bank of Travancore | 3 | 11.25% | 0.50% of the borrowed amount |
Last Updated on 6th July 2011
