Auto Loans

 

Auto loans in India is witnessing a surge in sales in the Automobile sector. Today every person has need of car, because it has become the need for the people and status symbol also. Recently, the sales graph of all the leading two wheeler and four wheeler manufacturers are bookings a phenomenal rise; as this increase in the demand of automobile can be directly linked to the ease of availability of automobile loans by different banks.




Good is finding a car the whole family will be comfortable in. Good is talking the price down to below where the manager said it could go. Good is driving off the lot with that new-car smell all around you. Great is being as happy about the loan you got as the car price you negotiated.
Great is not having to leave the lot to get this great rate.


 

Types Of Auto Loans Available:

 

 

 



Depending on the value of the motorcycle, you could get a personal unsecured loan to refinance your current loan or a secured refinance motorcycle loan. Inexpensive motorcycle loans can be refinanced with simple personal unsecured loan. You just request an unsecured loan and repay your current motorcycle loan so you only have to face the new payments.


 If the motorcycle is more expensive, you probably can request a motorcycle or motor vehicle refinance loan with the same company of your current loan or with another one. In any case, your current loan will be replaced with the new one that will also be secured with the motorcycle.

The Maximum loan offered by Banks for Auto Loans:

For new vehicles, banks generally finance up to a maximum of 90% of the cost of the vehicle.
In case of old/second hand vehicles, banks finance up to a maximum of 85% of the value of the vehicle. Repayment is done by Equated Monthly Installments or EMI.

The Interest Charged by Bank on Auto Loans:

Although Public sector banks are offering lower interest rate than their private counterparts but they are lagging behind due to poor quality of service. Interest rates depend on the automotive model, loan tenure. Interest is generally calculated on a monthly reducing balance.

Process Of Auto Loans Application:

Customers can contact the bank representative and apply for an auto loans. They can also fill online forms. There is no processing fee for new cars in most banks/finance companies. However, some companies do charge a minimal processing fee for used automotives.

All the Documents Required for Auto Loans:

 
  •    Application Form
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  •    Photographs
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  •    Proof of income of last two years
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  •    Proof of Residence
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  •    In case of public/Private companies, a certifies copy of MOA and AOA.

Some of the Banks Offering Auto Loans:

 

    Andhra Bank - "VANITHA VAHAN" Loan scheme
    ICICI Bank - Financier For Auto Loans
    Bank of India - BOI Star Autofin Scheme
    Standard Chartered - Auto Overdraft
    HDFC Bank - Fast Track Schemes
    State Bank of India - SBI Car Loans
    United Bank of India - United Car Loan Scheme




*Terms and conditions may vary from bank to bank.