Types of Car Loans
04 Apr 2021
Types of Car Loans
Car Loans are for those looking to finance their car purchase at relatively attractive interest rates.
At Bank of Baroda, you can get financing of up to 90% of the on-road price of a brand new car of your choice if you opt for Car Loan . Anyone can avail of a Bank of Baroda Car Loan, subject to their eligibility. These are available for a maximum loan tenure of 7 years, and the loan amount can be as much as Rs 1 crore. The bank gives a 0.25% concession on the interest rate to its existing home loan customers with a clean credit history. What's more, Concession of 0.50% in rate of interest on Car Loans to those applicant/s who offer minimum 50% of Loan limit as liquid collateral security e.g. Fixed Deposit of our Bank, NSC, KVP or LIC Policy.
The cars are hypothecated with Bank of Baroda until the full and final repayment of the entire loan amount.
Types of Car Loans in India
While there are generally three types of Car Loans available in India, there may be lender-specific customised options on offer. Most banks and financial institutions in the country offer new car loans, old car loans or Electric Car . Let's understand in brief these different types of car loans.
New Car Loan
As the name suggests, such loans are offered by banks to fund the purchase of new cars. You can get a car right out of the showroom without worrying about where to arrange the funds from. Banks will come to your rescue and offer loan options to choose from. You can compare interest rates and other charges being levied, along with some benefits associated with the loan product, and accordingly select your lender and loan option.
To promote Electric Vehicle Bank of Baroda is offering concession in ROI.
Pre- owned Car Loan
Some banks also help you buy second-hand cars or used vehicles, although the financing available for the same would generally be lower than that available in the care of new vehicles.
Bank of Baroda offers Car Loans to purchase a new hatchback, sedan, MUV or SUV for private use. The documentation is minimal, and the interest rates and processing fee are among the best.
The 3 Easy Steps to Calculate EMI on Personal Loan?
A personal loan does not require the borrower to provide collateral and so it is an unsecured loan. Since these are unsecured loans, the rate of interest on these loans are believed to be quite higher than all other types of loans. The purpose or intention of a personal loan is to fund immediate financial contingencies. It could either be for business capital, marriage, education or even foreign trips, though the end use of the loan really depends on the borrower, as long as it is for a legitimate financial need.
Before you apply for a Personal Loan, you may want to get down to the basics, to shop for the best offers on personal loans in the market. Among the most popular ones is the Bank of Baroda’s Personal loan product which apart from having the pedigree of belonging to one of the oldest and largest Indian banks, comes replete with some amazing features like flexible repayment options, affordable EMIs (Equated Monthly Instalments) that sit easy on your pocket and sizable loan amount among others in the category of personal loans.
Calculating the EMI on personal loans
The EMI calculations mainly rely on three variables- the loan term or the tenure of the loan, the loan value and the rate of interest. The rate of interest is one of the aspects that comes determined by the bank.
Calculating using the PMT formula
This is a longer, tedious and round about approach to calculating the EMI on your personal loan. Here, you can run the PMT formula on Microsoft Excel to calculate the EMI, where
PMT is your EMI,
NPER or number of periods is the total number of payments for the loan
PV is the loan value or the principal
Rate is the rate of interest/12
The formula is
PMT (Rate, NPER, pv).
You can keep trying the formula for various combinations and then choose the one with the lowest EMI, though this is a roundabout approach that could be prone to human error.
Online EMI Calculator
Or a far easier option to calculate the affordable EMI, is using, for example, Bank of Baroda’s online personal loan EMI calculator.
Here, you will find a slider on the range of each of the three basic variables on your screen- the loan amount you are likely to need, the tenure or the repayment period of the loan that suits your finances and the rate of interest.
Now, the rate of interest is what you get from the bank, while the other two aspects, i.e., the loan amount and the tenure of the loan are the ones you can play around with here.
When you place the cursor on a particular value of the loan term, rate of interest and loan amount, the calculator throws up a monthly payment value, which is your EMI. You can move the cursor horizontally along the range provided to pick the various values.
Here’s why using a Bank of Baroda personal loan EMI calculator works.
If EMI is too high
You can pick a longer loan term or
You can make the loan amount smaller.
If you find the EMI is affordable or even lower than ideal then you can plan to repay faster by either
Taking a larger loan value or
A shorter loan term.
What is a Home Loan?
What is a Home Loan?
For those looking to own a home, banks and other financial institutions offer loans for that purpose at competitive interest rates. So if you already have that dream house in sight, the next step isn't too hard. You can use a Home Loan to buy a plot of land, a flat or an apartment, build your own home from the ground up, and even extend or renovate your existing residence.
Bank of Baroda offers loans for homes to residents and Non-Resident Indians (NRIs), let us take at the types of loans you can get:
Types of Home Loans
Home Loan Advantage
Now you can have a Home Loan sanctioned that will be linked to your savings account. How it works is you can apply for a Home Loan and reduce your interest burden by the balcne amount in your savings bank account . What's more is, no interest will be will paid on the linked Savings Bank account.
Home Improvement Loan
A loan isn't just to buy a new home; you can also get a loan to renovate or have repairs done in your current residence. Moreover, you can use a Home Improvement Loan from Bank of Baroda to buy new furniture and fittings. That makeover you wanted for your home is now just a few steps away. Tax benefits are also availbale.
Home Loan Takeover
If you have a Home Loan from any other bank, housing finance companies (HFCs), non-banking financial companies (NBFCs) and financial institutions (FIs), you can switch it to the Bank of Baroda for better floating interest rates. We offer easy takeover for loans where more than 12 EMI`s are already repaid and certain under conditions are fulfilled.
Pre-approved Home Loan
Want to have more flexibility to negotiate with builders and sellers? A Pre-approved Home Loan can help you do just that, as it gives you a loan sanction as it provides in-principal approval for the loan before you have finalised the property you wish to purchase.
Home Suvidha Personal Loan
To help you finance those home purchase-related costs, like insurance, registration, stamp duty or goods and services tax and club membership .Bank of Baroda offers Baroda Home Suvidha Personal Loan.
Pradhan Mantri Awas Yojana (PMAY)
Government of India's PMAY scheme aims to ensure housing for all in urban areas by 2022, a mission that is to be realised across the country. Bank of Baroda offers Credit-Linked Subsidy Scheme (CLSS) under the government's PMAY mission, wherein interest subsidies on housing loans are made available to certain beneficiaries. 1st time home ownership is promoted through this initiative of the government.
Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)
Targeting mainly the EWS and LIG segments, the scheme aims to help address the said categories' home finance needs.
Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS)
The government has set up a CRGFS Trust, which provides credit risk guarantees to lending institutions, against housing loans sanctioned to customers belonging to the EWS and LIG segments, without the need for any collateral.
Questions to Ask When Applying for a Home Loan
Here are some of the common questions applicants ask when they apply for a Home Loan:
What is the maximum duration/period for which I can get the loan?
Bank of Baroda grants a Home Loan for a maximum tenure of 30 years. The loan term will under no circumstances exceed the age of retirement or completion of 65 years of age, whichever is earlier. The Home Loan tenure also varies based on the loan amount and the income of the borrower.
Can I prepay the loan ahead of schedule?
Yes, you have the option to prepay the loan either in part or in full.
Who is eligible to avail of a Home Loan from the Bank of Baroda?
All resident and non-resident Indians (NRIs) between the age of 21 and 60 are eligible for a Home Loan from the Bank of Baroda.
How much does the Bank of Baroda lend?
The Home Loan amount is determined based on your repayment capacity. Other factors like age, income, dependents, assets, liabilities, occupation stability, continuity of income, savings, etc., also play an essential role
What is the mode of repayment?
You can repay your loan amount via Equated Monthly Installments (EMIs).
What is the security for the loan
The security for the loan is the equitable mortgage of the property to be financed.
A Home Loan helps you buy a house where raising funds appear challenging. Moreover, at Bank of Baroda, the application process is online and convenient where you can upload documents from the place of your convenience. You also can view all the types of Home Loans on the bank's website.