Types of Car Loans

04 Apr 2021

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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 a 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 Electic Vehicle Bank 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.

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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 are the Benefits of Applying for a Home Loan?

What are the Benefits of Applying for a Home Loan?
Buying a property is a significant milestone in life. And in today's world, you can fulfil this milestone quite easily, thanks to a facility known as a Home Loan. Yes, a home loan empowers you to become a proud owner of a property of your choice. Apart from helping you fulfil one of your life's major goals, taking on a home loan, comes with its share of other advantages. Let us take a look at the various Home Loan benefits.
The Many Advantages of a Home Loan
Here are some ways in which taking on a Home Loan can prove beneficial
Capital Appreciation
As we all know, property rates are always on an upward trajectory. As such, the actual market value of your home keeps on appreciating with time. A property that may have cost you several lakh today can be worth a few crore in the future. As such, real estate is an investment that keeps on giving, thereby increasing your net worth.
High Repayment Tenures
One of the best Home Loan benefits is that you can repay your loan in long tenures. Bank of Baroda permits you to repay your loans in tenures lasting up to 30 years or 360 monthly instalments. This way, you do not need to compromise on your monthly expenses and continue supporting your lifestyle.
No Penalties on Prepayment
Another advantage of Home Loans is that you can close or prepay your floating interest-rate Home Loan before your chosen tenure. You can pay extra instalments each year (when you come upon surplus money), and repay the loan before the scheduled term. In doing so, you do not have to worry about incurring any financial penalties. This way, you can be rid of your loan burden at any time.
No Need to Live in Rented Facilities
A Home Loan helps you buy your own property and prevents you from living in a rented facility and having to move every few months or years. It proves especially beneficial if you are living in a metro city where your monthly rent may be equal to an EMI. So you may as well apply for a Home Loan rather than pay rent.
You Get Various Tax Benefits
While speaking of the various benefits on Home Loan, we cannot ignore the tax benefits you get. For one, you can claim tax deductions of up to Rs. 1.5 lakh p.a. on the principal loan amount, under Section 80 C of the IT Act of India. The only condition to get this Home Loan benefit is that you should not sell your property for the first five years. Apart from the tax benefit on the principal amount, you also get a deduction of Rs. 2 lakh p.a. on your loan's interest component, under Section 24B. These benefits apply for you as the applicant and your contributing co-applicant.
How to Apply For Home Loan Online?
Along with the many Home Loan benefits mentioned above, there is one more that not many people know about. Today, you can apply for your Home Loan without visiting the bank. Yes, Bank of Baroda has made the Home Loan application process incredibly seamless for its customers. You can directly visit our website, browse through the different types of Home Loans we offer, and begin the loan application process online. Just fill a form mentioning your personal and income details and wait to hear from us. Remember to use the Home Loan eligibility calculator to improve your chances of getting the loan sanctioned.

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