Car loans are among the most desirable financial products in India for a decade and the trend of availing car loans is increasing by leaps and bounds. Owning a car comes with a number of benefits that includes convenient commutation, luxury and more. Several financial firms and private sector banks in India have laid their focus on the auto loan sector for generating revenue in the form of interest, thereby providing easy and affordable car loans at tempting interest rates.
Car Loan Application Process
The entire process of applying for a car loan has been simplified by the banks for the ease of the borrowers. The entire process of the application works in the following way:
- Form fill up– Fill out the form with all the vital particulars such as their details and other required credentials.
- Document verification– After the submission of the application, the borrowers are required to submit all the documents mandated by the banks.
- Loan approval– If the bank finds all the document valid and find the borrower to be capable of paying the loan EMIs on time, they will approve the loan amount within a short duration of 2 days.
- Loan disbursal– The loan amount is disbursed to the applicant after a certain time. That’s all!
Factors of Car Loan Approval in India
CIBIL score- The CIBIL score plays a crucial role when it comes to car loan approval in India. CIBIL score is the rating given to an individual customer by the Bureau of CIBIL based on his/her past loan repayment record. If the borrower is found to be consistent in paying the loan EMIs on time, the person is given a high rating. On the contrary, borrowers who were not regular with their EMI payments are offered a low credit score.
Car loan repayment period– Usually in India the car loan repayment period ranges between 1-7 years. It is up to the comfort of the borrower what repayment tenure he/she wants to pick. The repayment tenure has a significant role to play in deciding the monthly EMIs. If the tenure is higher, the EMIs are low and if the tenure is shorter, the EMIs are naturally more.
Interest Rates- The interest rate offered by the banks is negotiable in certain cases. Borrowers can bring down the rate based on their eligibility factors. Hence, a buyer should shop around and discuss with at least 3-4 banks to get the best loan rate. This is where Ruloans comes to serve you. Our finance experts with astronomical experience let you compare your loan and choose the best lender as per your needs.