Car Loan for New Car

[arpitshah]

Hi, I'm planning to purchase new car by next month. Overall car cost is 14.4 Lakhs, planning to take loan of 9 Lakhs. Need a suggestion on:
1. Which company shall I approach for the loan?
2. What all pointers need to be cleared before onboarding with them? Loan floating or fixed interest rate, foreclosure terms, etc.

 

[Rkagrawal]

#You can purchase 1-3year old car and savehuge registration tax and insurance amount.
#Go to Sundram finance it is specialist in new car finance with lowest intrest rate in market.
#rate charge flat under 5% and tenure should be take 60 months.
#If you take loan 65%of car value then they will not ask for income proff like ITR or bank statement and guarantor also not required.
#above 90%loan guarantor and income needed.

 

[Purwaja pawar]

Hi, I'm planning to purchase new car by next month. Overall car cost is 14.4 Lakhs, planning to take loan of 9 Lakhs. Need a suggestion on:
1. Which company shall I approach for the loan?
2. What all pointers need to be cleared before onboarding with them? Loan floating or fixed interest rate, foreclosure terms, etc.

When taking a car loan, it's important to consider both the lender and the terms of the loan. Here are some suggestions and key pointers:

### 1. **Which Company to Approach for the Loan?**

**Banks:**
- **State Bank of India (SBI)**: Known for competitive interest rates and flexible loan terms.
- **HDFC Bank**: Offers quick processing and good customer service.
- **ICICI Bank**: Provides a range of loan products with attractive interest rates.
- **Axis Bank**: Offers a good balance of interest rates and loan processing speed.

**Non-Banking Financial Companies (NBFCs):**
- **Mahindra Finance**: Known for their extensive network and flexible loan options.
- **HDFC Ltd**: Provides competitive interest rates and good customer service.
- **Bajaj Finserv**: Offers fast processing and attractive loan schemes.

### 2. **Pointers to Clear Before Onboarding:**

**Interest Rate:**
- **Fixed Interest Rate**: The interest rate remains the same throughout the loan tenure. It provides stability in EMI amounts but may be slightly higher.
- **Floating Interest Rate**: The interest rate varies based on market conditions. It may start lower but can increase over time.

**Foreclosure Terms:**
- Check if there are any penalties for early repayment or foreclosure of the loan.
- Some lenders charge a percentage of the outstanding loan amount as a foreclosure fee.

**Processing Fees:**
- Enquire about any processing fees and other administrative charges associated with the loan.

**Loan Tenure:**
- Understand the loan tenure options and choose one that best fits your financial situation.

**Down Payment:**
- Confirm the down payment amount you need to pay and ensure it is manageable.

**EMI Amount:**
- Calculate the Equated Monthly Installment (EMI) to ensure it fits your budget.

**Insurance:**
- Some lenders may require you to purchase insurance for the loan. Check the terms and costs involved.

**Credit Score:**
- Ensure your credit score is in good shape as it can influence the interest rate and approval process.

**Documentation:**
- Prepare necessary documents such as identity proof, address proof, income proof, and bank statements.

### Tips:
- **Compare Multiple Lenders:** Get quotes from multiple banks and NBFCs to compare interest rates and terms.
- **Negotiate:** Don’t hesitate to negotiate the terms and interest rate with the lender.
- **Read the Fine Print:** Carefully read and understand all the terms and conditions of the loan agreement before signing.

Taking the time to understand these factors will help you make an informed decision and secure a car loan that best meets your needs.