From impulsive road trips to your daily commute, your ideal automobile can now be in your immediate possession with Auto Loans.
An Auto Loan is taken by borrowers who want to buy a vehicle. These loans are usually secured (collateralized) against the vehicle itself.
An Auto Loan can be offered for new cars, used cars, two wheelers (generally called a Two-wheeler Loan) and commercial vehicles (generally called a Commercial Vehicle Loan).
An Auto Loan can be availed for up to 90% of the invoice value. The vehicle is hypothecated to the lender, as collateral. The repayment is based on your income and other requirements; it is typically between 12-84 months.
Lenders fix interest rates depending on the type of vehicle and loan amount. Interest rates are usually fixed for auto loans.
Lenders check the income, credit history and current loan repayments (also called EMIs- Equated Monthly Installments) of the consumer before granting an auto loan. The better the CIBIL TransUnion Score and repayment history, the higher the chances of being approved an auto loan of your choice. Ensure your credit report is up to date and favorable by purchasing your report here.
It is not always necessary to go with the bank the your car dealer suggests, you can go to another lender if they offer better terms on the loan being offered.