Getting a car loan is an extremely easy process nowadays. There are plenty of banks and finance companies that are willing to give you a loan up to 2.5 to 4 times of your net annual income. There is no ceiling on the loan amount for new cars. So, here is how the step-by-step process for the car loans.
Step 1: Become eligible for the car loan.
To find the lowestcar loan interest rate, you need the dedicated research. With a few certain facts to keep in mind, there is a guarantee that your application for a car loan will be accepted in no time. To get loan ready, you need to meet the eligibility criteria of the most banks and finance companies.
The age of the borrower is between 21-65 years.
The borrower should have a job for at least 2 years. You should be able to hold a job atleast for a year with your current employer.
You should have a telephone, mobile or smart phone to be able to reach you.
You must earn minimum an income of Rs. 1, 80,000 P.A., which can include your and your co-applicants the income.
There are few banks that levy higher criteria for the car loan approval. You may need higher salary standards, better credit score, etc. But, if you apply with smart banking solutions like HDFC, above criteria can be sufficient.
Step 2: Gather down payment & finalize lender.
Since, car loan application and approval is easy, you need the down payment handy. So, how much down payment you need. It may seem that 15 to 20% is enough. But some organizations do offer loan for 100% of the amount too. So, look into that. It will help you finalize the lender.
Step3: Fine-tune the details.
The maximum repayment tenure is fixed to 7 years for the most banks. You will need to consider processing fee, service charges and taxes before you finalize the lender, EMI and tenure. Most lenders will have user friendly car loan EMI calculator on their websites. They are designed to help you compare the best interest rates, EMI, affordability of the car models you are considering and much more. Using a car loan EMI calculator, you can calculate the rate you can afford when you select the lender and EMI.
So make sure and do your homework on the various car loan interest rates using the car loan EMI calculator because it will help you select the most suitable one.