What is Auto Loan?
An auto loan, also known as a car loan, is a type of financing that allows individuals to borrow money to purchase a vehicle.
Types of Auto Loans:
- ew Car Loan
- Used Car Loan
- Refinancing Loan
- Personal Loan (unsecured)
- Lease Financing
Key Considerations:
- Interest Rate: 7-15% per annum
- Loan Tenure: 1-7 years
- Down Payment: 10-20% of vehicle price
- EMI (Equated Monthly Installment)
- Credit Score: Impacts interest rate and loan approval
Eligibility Criteria:
- Age: 21-60 years
- Income: Rs2.5-3 lakhs per annum
- Credit Score: 650-750
- Employment: Salaried or self-employed
Documents Required:
- ID proof (Aadhaar, PAN)
- Income proof (salary slips, ITR)
- Address proof (utility bills)
- Vehicle quotation
- Insurance documents
Auto Loan Features:
- Loan Amount: Up to Rs50 lakhs
- Flexi EMI options
- Pre-approved loans
- Doorstep service
- Online application
Top Auto Loan Providers:
- SBI
- HDFC Bank
- ICICI Bank
- Axis Bank
- Tata Capital
- Bajaj Finserv
- Mahindra Finance
- L&T Finance
Auto Loan Calculator:
- Calculate EMI
- Check loan eligibility
- Compare interest rates
Auto Loan Tips:
- Compare interest rates
- Check credit score
- Consider longer loan tenure
- Opt for insurance
- Read terms and conditions carefully