How to Apply for a Car Loan
04 Apr 2021
How to Apply for a Car Loan
That expensive car you have your eyes on is now a possibility more than ever. You can get a loan from banks and other financial institutions to fund it. Not long ago, having a home of your own or a family car used to be considered luxurious most people found themselves unable to afford. But with the variety of loan products on offer these days, one does not have to have unfulfilled dreams anymore.
Are you planning to buy yourself a new ride? You can get up to 90% of the on-road price of the car of your choice financed with a Bank of Baroda Car Loan. Here's how to apply for a car loan.
Car Loan Eligibility Criteria
At Bank of Baroda, you can get yourself a car loan to buy a car of your choice. These auto loans are available to all salaried employees, business people, professionals, farmers, corporates (partnership, private limited, public limited and trust), as well as NRIs and PIOs.
The borrower should also be at least 21 years old, while his/her age plus the repayment period should not exceed 70 years.
The documents that you need to keep ready when applying for a Bank of Baroda Home Loan are as follows:
- Photo ID with age proof (like, PAN card, passport, driving license)
- Signed application form with 3 passport-sized photographs
Bank statement for the last six months
If the applicant is a salaried individual
- -3 months' salary slips
- -Form 16 or Income Tax Returns
If the applicant is a self-employed individual
- -Balance sheet and profit and loss account, computation of income for the last 2 years
- -Income Tax Returns of the previous 2 years
- -IT Assessment/Clearance Certificate, Income Tax Challans/TDS Certificate (Form 16A)/Form 26 AS for income declared in ITR
How to Apply for Car Loan?
The process is relatively simple and straightforward. Once you have decided upon the model you wish to purchase, look through the various Car Loan options. Bank of Baroda has competitive interest rates on their Car Loan products.
After finalising the bank or lender you wish to go with, you can either head to the bank branch or log on to their website to start the loan application process. To apply for a Car Loan from Bank of Baroda, visit the website. Keep the documents above handy, and also be sure to check your eligibility for the loan.
Car Loan Approval Process
In this digital age, the loan approval process has become simpler and quicker, with most banks deciding upon loan applications almost instantly. Once the lender verifies your credit score and a few other things on their end, your loan application will go through, and the process of disbursal begins. In the online mode, the Car Loan fund transfer takes place in a matter of just a few minutes, with a couple of clicks to kickstart things. A car loan is granted based on the customer's credit score, income situation, other debt obligations and repayment history, among other things.
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Masoom Raja25 November, 2021
Masoom Raja25 November, 2021
Car loan lenge hm sar kitna jldi lon pass hoga 5
Asmin25 November, 2021
Iqbal ahmed khan18 November, 2021
Want to take pre owned car loan
Ansal06 November, 2021
Looking for Auto Loan
A R V MURTHY26 October, 2021
Planning to take a car loan, would expect a call from you
Mohd shahvaiz22 October, 2021
Keshab jani22 October, 2021
Mala Devi21 October, 2021
TATA car. Misn maa
Omprakash Singh21 October, 2021
sanjay sood20 October, 2021
tried to complete form on the website for a car loan it does not take the account statement indicates error application could not be completed though tried for a few times over three days ;partially completed form including income tax return is available in the application already uploaded please depute to ring and discuss if you are interested in giving loan i am a chartered accountant and hold a credit card issued by your bank
Shraddha Edla16 October, 2021
Wanted to know about car loan process
Judiya Khan30 September, 2021
Loun 250000 karvani
Sudhanshu18 September, 2021
Ghaziabad indirapuram Nyay khand 1
Sudhanshu18 September, 2021
Ghaziabad indirapuram Nyay khand 1
Gyanendra Singh12 September, 2021
Car loan amount
Sandeep maurya11 September, 2021
Added card 226435601016
Satish Kumar09 September, 2021
I want a Car Loan for Rs. 8.50 Lacs. Plz. sguide me.
How the Pradhan Mantri Awas Yojana Scheme is a futuristic, beneficial scheme?
We all dream of owning a home. Whether it is a small 1BHK or a bungalow, a home is the ultimate financial security one can have. It can provide you and your family a safe heaven, it can take care of the financial future of your children and it can also be used as collateral against various types of loans whenever you need money urgently. But with the sky-rocketing real estate prices, there are some sections of the society who cannot even dream of owning a house. In the words of Prime Minister Narendra Modi, the “Pradhan Mantri Awas Yojana is a significant step in making the dreams of the poor come true”. Let’s look at the many benefits of Pradhan Mantri Awas Yojana – Housing for all scheme.
It aims at Slum rehabilitation
The PMAY scheme is a well thought out scheme that ultimately benefits the nation and the economy. The main objective of the scheme is to eradicate the slum houses and replace them with ‘pucca’ or concrete homes, especially from the urban cities of India that greatly contribute to the GDP. With the help of this ‘in-situ’ slum rehabilitation scheme, the government is hoping to encourage slum dwellers to opt for formal urban settlements as opposed to slum dwelling and leverage the land that is losing value due to slum settlements.
It provides housing for all
One of the greatest advantages of Pradhan Mantri Awas Yojana is that it aims at providing permanent housing for all. Under this scheme, the government is seeking to construct as many as 2 crore affordable 1 BHK flats in some of India’s prominent urban areas. House construction has already begun in the States of Maharashtra, Tamil Nadu, West Bengal etc. The Government of India aims to uplift the general standard of living of the Indian population and eradicate poverty through these houses.
It promotes affordable housing for all sections of society
The PMAY scheme aims to provide affordable housing to all sections of society. These benefits are extended to applicants who do not own any home and fall within specific income groups and sections of society. Applicants are divided into various groups such as economically weaker sections of society (EWS), lower income groups (LIG) and middle income groups (MIG). The Middle Income Group is further categorised as MIG 1 and MIG 2 based on income levels. Additionally, it also encompasses minorities such as members of scheduled castes, scheduled tribes, other backward classes as well as women and senior citizen applicants, widows and members of transgender communities.
Homes are provided at subsidized interest rates
The most important benefit of PMAY scheme is the credit linked subsidy scheme. With a view to increase the flow of institutional credit, the government has launched a credit linked subsidy component to PMAY scheme. This enables the eligible urban poor (members from EWS, LIG, MIG 1 and MIG 2) to receive home loans for acquisition or construction at effectively much lower interest rates. Such borrowers can receive a substantial decrease in interest repayment. For instance, if a member of the above mentioned income group opts for a home loan he/she would be charged an interest rate of 8.40% p.a. For loan amount up to ₹600,000 ,he will receive an interest subsidy as per his eligibility. Interest subsidy will be credited upfront to the loan account of beneficiaries through lending institutions resulting in reduced effective housing loan and Equated Monthly Instalment (EMI). If one opts for a home loan over the amount of ₹600,000, they have to pay the regular interest rate on the amount exceeding ₹600,000.
It secures the financial future of women
Another great advantage of PMAY is that it encourages women to apply for loans and become home-owners. As per the scheme clause, if a married man is applying for the loan, he has to mandatorily register his wife as the co-applicant of the loan, even if she has no role in financing to purchase the property. This is done to secure the financial future of women, especially when they are older and widowed.
The benefit of eco-friendly housing
Developers and builders in charge of building houses under the Pradhan Mantri Awas Yojana Scheme, have been instructed to construct the houses with eco-friendly construction material and technology. The aim behind this is to ensure minimum damage on the environment around the construction site, including damage causes due to air and sound pollution. Homes are being built with sustainable, good quality material to eliminate the need for remodelling or renovation for as long as possible.
As you can see, there are many benefits of PMAY. Walk into a Bank of Baroda branch today to get more details about this scheme.
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How to apply for an education loan – a step by step guide
The cost of seeking a quality education is rising every day. Schools and universities charge fees to the tune of several lakhs of rupees, making it impossible for parents to fully fund their child’s education. High costs of education are especially a burden on parents whose children aspire to attend private institutions in India or prestigious universities abroad. In such a situation, the only respite is offered by banks which provide education loans. Such loans cover everything, from tuition fees and cost of books, apparatus etc., to lodging charges, dormitory fees, travel allowance and so on. Let us find out the step-by-step procedure to take education loan.
Step 1 – Filling the application form
Just like with any other loan, the first step is to fill an application form. The application form is a simple form in which you must provide your personal contact details as well as your academic details. Ensure that you provide accurate and truthful information in this form. As per the instructions of the Department of Financial Services, Ministry of Finance, Government of India, all education loan applications (including applications received by Bank in physical format) are to be applied through Vidya Lakshmi portal, i.e. https://www.vidyalakshmi.co.in/Students
Step 2 – Interview
The next step in the education loan procedure is the interview round. After considering your application, your bank typically calls you for a personal discussion or an interview. Note that the loan is offered to the student and co-obligation of parents/ guardian and the student is considered as the main loan applicant. You may be asked several questions pertaining to your academic performance, the institute you wish to attend, the course selected by you, future scope of your chosen course and so on. You must be honest and should be able to convince the bank that you are choosing a stream that has the potential to generate good income, thus enabling you to repay the loan.
Step 3 – Documentation
Before the loan is processed you need to prove to the bank that your chosen university has extended an offer of admission. This is the primary document that all banks ask for, even before one begins the actual loan application process. The bank can get in touch with the university to verify your enrolment. If your education loan amount exceeds ₹4,00,000, you would be required to provide some sort of collateral in the form of third party Guarantee if the required loan amount is upto Rs.7,50,000, and if it exceeds 7,50,000 you are required to provide collateral security equivalent to 100 % of the loan amount along with assignment of future income of the student for payment of instalments.
Assignment of future income of the student for payment of instalments is applicable to all Education Loans irrespective of Loan amount.
Step 4 – Loan approval
As per the education loan repayment procedure, banks offer the loan to the student applicant, and since the student cannot repay the loan until the course is completed, the bank considers parents/guardians as co-borrower of the loan. The Bank also verifies the credit history of the Co-borrower/guarantor before sanctioning the loan. Bank offers moratorium period equivalent to the course period plus one year and it is optional for the borrowers to serve the Interest on Education Loan during this moratorium period. Once the loan is approved, the borrowers will receive a Sanction letter from the Bank. Once the Borrowers accept the terms and conditions of sanction, Bank calls them for execution of loan documents and hand over of collateral security papers in original to the Bank if it is required as per terms of Sanction.
Step 5 – Loan disbursal
The final step in the education bank loan procedure is loan disbursal. Banks typically directly disburse the loan to your chosen university by way of Banker’s cheque, Demand draft or SWIFT message as per the location of the chosen University/Institution along with your margin if stipulated in Sanction.