Buying a car is an investment and not just an expenditure. Moreover, it’s a major one too. So, buying a car shouldn’t be taken lightly, even if it’s for something as simple as getting around in your city or going out of town for occasional weekend getaways. Fortunately, getting a car loan for a new car in Delhi is much easier than it used to be. In fact, now that the lending landscape has changed so much over the past few years, you should have no trouble getting approved for the loan you need. But let’s first take a look at what a car loan for a new car entails.
What Is A Car Loan For A New Car?
credit A car loan is basically a loan you take out to buy a car. The terms of your loan will depend on the lender and the type of car loan you opt for. Regardless of the lenders or loan types you choose, the key thing to keep in mind is that you borrow money to make the purchase of a car. At the point in time you make the loan payment, you’ll have paid off whatever amount the original lender loaned you plus interest. If the terms of your loan stipulate a certain number of months, you’ll have also paid off the loan.
Also Read: Axis Personal Loan: A Pal For Financially Troubled People
How To Get A Car Loan For A New Car In Delhi?
There are plenty of ways to get a car loan for a new car in Delhi, but in this article, we’ll focus on the traditional method: taking out a loan from a bank. There are a couple of things you can do to make things easier for yourself when it comes to getting a car loan for a new car.
First, shop around for the best loan rates. If you can snag a loan from a number of different lenders at multiple rates, you’ll be in a much better position to get the best deal than if you go with one lender at one rate. Next, try to get a co-signer. While it’s always best to find a loan that requires no cosigner, in some cases, you may find a lender willing to accept one.
If that’s the case, get your parent, sibling or other close family member to be your co-signer. That way, you’ll have more flexibility in the event you don’t make the loan payment at the designated time or you get in over your head and need a little extra financing to stay afloat.
When To Get A Car Loan For A New Car?
The best time to get a car loan for a new car is when you have a steady source of income. And, for most people, that’s when you’re making full payments on your mortgage. There are a few other scenarios in which you may be able to get a car loan for a new car, but you should proceed with caution. For example, if you have a source of income other than the one you’ll be using to make the loan payments, and if you can get the loan terms you need, then you may be able to get a car loan at that time.
Things You Should Know Before Getting A Car Loan In Delhi
So, you’ve decided that now is the time to get a car loan for a new car. Great choice! If you haven’t already, it’s a good idea to sit down with your financial advisor and take a look at your current financial situation. This will help you determine how much you can realistically afford to spend on a car and what kind of car you can afford. When you know those things, you’ll be better prepared to choose the right car for your situation and be more likely to get a car loan for a new car at the right amount. Before you sign any paperwork, make sure you’re up to speed on any changes in the lending landscape that would affect your loan.
Car Loan Interest Rates In New Delhi
|Bank||Interest rates||Minimum income||Processing fee|
|State Bank of India||9.30% p.a. to 9.80% p.a.||Salaried – Rs.2.5 lakh p.a.; Self-employed – Rs.3 lakh p.a.; Agriculture workers – Rs.4 lakh p.a.||Nil|
|HDFC Bank||9.75% p.a. to 10.60% p.a.||Rs.3 lakh p.a.||0.4% of the loan amount subject to a minimum of Rs.3,000 and a maximum of Rs.10,000|
|ICICI Bank||9.30% p.a. to 12.85% p.a.||Contact the company for more details||Rs.3,500 to Rs.8,500 (depending upon vehicle type)|
|Axis Bank||9.25% p.a. to 11.50% p.a.||Rs.2.40 lakh p.a.||Rs.3,500 to Rs.5,500|
|Federal Bank||From 9.20% p.a. onwards||Rs.20,000 p.m.||N/A|
|IndusInd Bank||From 10.65% p.a. onwards||Salaried – Rs.2.50 lakh p.a.; Self-employed – Rs.2 lakh p.a. net profit||0.5% of the loan amount subject to a minimum of Rs.2,500|
|Punjab National Bank||From 9.05% p.a. onwards||Rs.20,000 p.m.||Rs.1,000 for loans under Rs.6 lakh Rs.1,500 for loans over Rs.6 lakh|
|Oriental Bank of Commerce||Male borrowers – 9.25% p.a.; Female borrowers – 9.15% p.a.||Rs.30,000 p.m.||0.5% of the loan amount subject to a minimum of Rs.500 and a maximum of Rs.7,000|
|Jammu and Kashmir Bank||Fixed – 11.25% p.a. with monthly rests; Floating – Base rate + 1% p.a. with monthly rests||Rs.3 lakh p.a.||0.5% of the loan amount subject to a minimum of Rs.500|
|Andhra Bank||1-year MCLR + 0.70%||Rs.1 lakh p.a.||1% of the loan amount subject to a minimum of Rs.1,000 and a maximum of Rs.25,000|
|Bank of Maharashtra||8.95% p.a.||Rs.3 lakh p.a.||0.25% of the loan amount subject to a minimum of Rs.1,000 and maximum of Rs.15,000|
|Bank of India||9.5% p.a.||Contact the bank for details||Rs.500 per application|
|Central Bank of India||Fixed – 9.00% p.a.; Floating – 1-year MCLR + 0.40% p.a.||Rs.2.40 lakh p.a.||Contact the bank for details|
|United Bank of India||From 9.15% p.a. onwards||Rs.25,000 p.m.||0.59% of the loan amount subject to a minimum of Rs.600 and a maximum of Rs.11,800|
|Bank of Baroda||1-year MCLR + strategic premium + 0.25% p.a.||Contact the company for details||Rs.1,000 to Rs.2,500 + GST|
|Syndicate Bank||1-year MCLR + 0.50% p.a.||Rs.2 lakh p.a.||Rs.125 per lakh|
|IDBI Bank||From 9.30% p.a. onwards (varies based on credit score of the borrower)||Rs.2.4 lakh p.a.||Rs.1,000 + GST|
|Canara Bank||From 8.95% p.a. onwards||Rs.3 lakh p.a.||0.25% of the loan amount subject to a minimum of Rs.1,000 and a maximum of Rs.5,000|
Eligibility Criteria For Salaried And Self Employed Individuals.
|Criteria||Salaried individuals||Self-employed individuals|
|Age||21 years||21 years|
|Income||Rs.20,000 p.m.||As required by the lenders.|
|Income stability||At least one year in the current job||At least one to three years of business vintage.|
Also Read: How to Refinance a Personal Loan? The Pros and Cons
Getting a car loan in Delhi is now easier than ever. You just have to shop around for the best loan rates and get a co-signer if needed. Be patient during the process, as it can take some time to get through all the paperwork, and you’ll be in good shape.