It is everyone’s dream to have a branded car along with the house. Car not only makes your life comfortable but also reduces many difficulties. Coming to the office while battling with public transport or going out for a weekend walk, everything becomes very easy. Before buying a car was too big for anyone, because it was required to have spent a lump sum, but now loan(Car Loan) due to be readily available, it has become much easier. Banks and non-banking finance companies give car loans on easy monthly installments, which has made it very easy to buy a car now. This does not spoil your budget and also provides convenience.
Bank gives loan to Buy You A New Car, Used Car or give Loan Against Car. Banks generally offer loan upto the cost of the new car 85%. In this loan, your car is mortgaged (hypothecated) with the bank.
What are the types of car loans?
You can actually take a loan to buy a new or used car. Let us show that you usually are the kind of car loans:
New car loan:- Banks offer you loans to buy new cars. Banks generally offer loan upto the cost of the new car 85% . In this loan, your car is mortgaged (hypothecated) with the bank. When you repay the loan, No Objection Certificate (NOC) the hypothecation can be removed by taking a from the bank.
Used car loan:– If the bank gives you a loan to buy used car. The condition in this is that the car should not be more than three years old. By buying such a car, you can get of the value of the car 50% to 80%.
Loan against used car:– If you need money then you can take loan against your car from bank. This loan can be availed to meet virtually any requirement of yours. Even in this situation, banks give you loan the value of the car 50%-80% upto. As long as you do not repay the loan to the bank, then you can not sell the car.
Car loan application process
Banks have made the car loan process very easy. Filling the Form: First of all you have to fill the application for car loan. You can fill the application by visiting the bank or at the car dealer.
Document Verification:à bank lending after filling the application takes the process to verify your documents. You have income, to provide proof of identity and address. The bank verifies it and verifies it.
Loan approvals:à If the bank is satisfied with your documents and feels that you can be given a loan to buy a car, then your car loan is sanctioned.
Lone meet:–> After this, a car loan is issued in your name.
Documents required for car loan application:-
• Bank account statement of last six months
• 2 passport size photographs
• Identity proof (Passport, PAN card, Voter’s IT card or Driving license etc.)
• Address proof (ration card, driving license, passport), telephonebills, electricity bills or Life insurance policies, etc.)
• Income certificate salary slip, form 16
• last two years of IT returns or form 16
• Audited balance sheet in the non-salaried / professional /business, a two-year profit End Loss Statement, Shop and Establishment Certificate/ Sales Tax Certificate/ SSI Registered Certificate/ Copy of Partnership
• In case of people engaged in agriculture or allied activities, photographed Khasra/ Chitta (in which cropping pattern is given) – Patta/ Khatauni ( Have given land holding). All the land should be on free hold basis and the ownership proof should be in the name of the borrower.
when buy the car after taking a loan(car loan), it remains mortgaged to the company lending. This gives them the right to confiscate your property in case they are unable to repay your loan. If you are not able to pay the monthly installment on time, they can pick up the car and take it away.
Hypothecation letter is also a part of the car registration process. When your loan(CarLoan) Once will repay, You can delete Hypothecation the company lending the registration papers.
To remove the hypothecation, you will have to go to the concerned registration transport office with no objection certificate, car insurance papers and address proof. It is important to note that debt(CarLoan) provided by the mandatory NOC from the company. After this, give it to the insurance company and issue the insurance paper in the name of the new owner.
The amount of Car Loan:–
The amount of Car Loan depends on your age and income. The car you get much credit, Loan provided by the subject company. Generally you will get loan, four or six-time of your annual income.
You can get loan upto 80% to 90%. Some banks, however, 100% finance. It can be ex-showroom price or on road price.
Ex-showroom price is the amount paid to a dealer for buying a car. When your registration charges, insurance,, bring the car to drive on the road after paying road tax, etc. then it is the on road price.