Instant Car Loans
With a glut of car loan prospects accessible in India at present, it is no more difficult for an average Indian to purchase his dream car within a short duration. The most exceptional aspect about the Instant Car Loans in India is that apart from the new cars, loans are also accessible for the old cars also.
Before seeking an instant car loan it is advisable for the borrower to check all credit plans accessible in the market. After a meticulous understanding and assessment of the plans, select the one that fits the fiscal obligation both in terms of monthly installments and interest rates. The loan amount relies on the value of the car and the category in which it falls, besides the ratio of credit the borrower wants.
Instant car loan amounts for new car is up to 90% of the price of the four-wheeler and for old car it’s up to 80% of its price. Although, the banks might have various guidelines for various models and in case if the purchaser fails to pay the loan amount, the bank is bound to sell the car to settle their loan. Therefore, the bank may allot a high ratio of credit in such cases.
Last Updated on 6th July 2011
Before seeking an instant car loan it is advisable for the borrower to check all credit plans accessible in the market. After a meticulous understanding and assessment of the plans, select the one that fits the fiscal obligation both in terms of monthly installments and interest rates. The loan amount relies on the value of the car and the category in which it falls, besides the ratio of credit the borrower wants.
Instant car loan amounts for new car is up to 90% of the price of the four-wheeler and for old car it’s up to 80% of its price. Although, the banks might have various guidelines for various models and in case if the purchaser fails to pay the loan amount, the bank is bound to sell the car to settle their loan. Therefore, the bank may allot a high ratio of credit in such cases.
Features of Car Loans
Some of the general features of Instant Car Loans in India are:- The utmost loan amount is calculated up to 3 times of the yearly income for salaried individuals and 6 times of the yearly income for self employed individuals
- The tenure of the loan is between 1 to 5 years
- If the borrower wants to opt for premature payment of the loan sum, specific charges are considered as a fine.
- The rate of interest for car loan is computed on compound basis.
- In case if the borrower has been announced as insolvent, it will be very complicated for the respective person to get a car loan in future
Banks Interest Rates for Car Loans
Mentioned below is the rate of interest for different terms allocated by some of the prominent banks in India:| Name of the Bank | Rate of Interest for several consecutive years | ||||||
|---|---|---|---|---|---|---|---|
| 1st year | 2nd year | 3rd year | 4th year | 5th year | 6th year | 7th year | |
| Allahabad Bank | 10.5 | 10.5 | 10.5 | 10.5 | 10.5 | 10.5 | 10.5 |
| ICICI Bank | 9.5 -13.0 | 9.5 -13.0 | 9.5 -13.0 | 9.5 -13.0 | 9.5 -13.0 | NA | NA |
| Axis Bank | 10.0 -10.5 | 10.0 -10.5 | 10.0 -10.5 | 10.0 -10.5 | 10.0 -10.5 | 10.0 -10.5 | 10.0 -10.5 |
| Kotak Bank | 10.5 - 11.0 | 10.5 - 11.0 | 10.5 - 11.0 | 10.5 - 11.0 | 10.5 - 11.0 | NA | NA |
| Canara Bank | 11.0 | 11.0 | 11.0 | 11.0 | 11.0 | 11.0 | NA |
| SBI | 11.25 | 11.25 | 11.25 | 11.25 | 11.25 | 11.5 | 11.5 |
| Indian Overseas Bank | 11.5 | 11.5 | 11.5 | 11.5 | 11.5 | NA | NA |
| State Bank of Travancore | 11.0 | 11.0 | 11.0 | 11.0 | 11.0 | 11.25 | 11.25 |
| Syndicate Bank | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | NA |
| Bank of India | 9.75 | 9.75 | 9.75 | 10.25 | 10.25 | 10.25 | 10.25 |
EMI Computation for Car Loans
Mentioned below is the EMI Computation for different terms allocated by some of the prominent banks in India:| Name of the Bank | EMI Computation for various loan tenures | ||||||
|---|---|---|---|---|---|---|---|
| 1st year | 2nd year | 3rd year | 4th year | 5th year | 6th year | 7th year | |
| Allahabad Bank | 26,445 | 13,913 | 9,751 | 7,681 | 6,448 | 5,634 | 5,058 |
| ICICI Bank | 26,305 - 26,795 | 13,774 - 14,263 | 9,610 - 10,108 | 7,537 - 8,048 | 6,301 - 6,826 | NA | NA |
| Axis Bank | 26,375 - 26,445 | 13,843 - 13,913 | 9,680 - 9,751 | 7,609 - 7,681 | 6,374 - 6,448 | 5,558 - 5,634 | 4,980 - 5,058 |
| Kotak Bank | 26,445 - 26,514 | 13,913 - 13,982 | 9,751 - 9,822 | 7,681 - 7,754 | 6,448 - 6,523 | NA | NA |
| Canara Bank | 26,514 | 13,982 | 9,822 | 7,754 | 6,523 | 5,710 | NA |
| SBI | 26,549 | 14,017 | 9,857 | 7,790 | 6,560 | 5,787 | 5,216 |
| Indian Overseas Bank | 26,585 | 14,052 | 9,893 | 7,827 | 6,598 | NA | NA |
| State Bank of Travancore | 26,514 | 13,982 | 9,822 | 7,754 | 6,523 | 5,749 | 5,176 |
| Syndicate Bank | 26,655 | 14,122 | 9,964 | 7,900 | 6,673 | 5,865 | NA |
| Bank of India | 26,340 | 13,809 | 9,645 | 7,645 | 6,411 | 5,596 | NA |
Last Updated on 6th July 2011
