Types of Car Loans
10 Feb 2023
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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 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.
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.
Loan against Car
If purchasing a car on loan is on your wish list, then choosing the Bank of Baroda is a wise choice. The bank offers loans on new and pre-owned cars without collateral on loan against car. The bank finances 75%- 100% (depends on types of car). The interest rates are attractive with minimal documentation and no foreclosure or pre/ part payment charges. With nominal processing time, enjoy speedy loan disbursal. Looking for higher loan amounts? You have reached the right place.
New Car vs Used Car Loan
Bank of Baroda gives loans on new or used cars at highly affordable rates. With the highest financings and competitive rates, repay new and old car loans in 7 years. Apply for loans if you are between 21 -65 years. If the CIBIL score is 701 or above, the applicant's loan interest rate will be considered accordingly. Evaluate new car vs used car loans from BoB.
Choose from Different Types of Car Loan at Bank of Baroda
Bank of Baroda offers loans up to 75% -100% on new and used cars with a car loan tenure of 1-7 years. Ensure your CIBIL score is 701 for attractive interests. The bank hypothecates the car as collateral, till the loan is fully paid. Salaried employees, self-employed, NRIs, OCIs and PIOs can avail of the loan. Applicant should be above 21 years and repayment must complete before the borrower’s 70th year. Choose from different types of car loans at the Bank of Baroda.
Bank of Baroda offers attractive interest rates on car loans. Take advantage of the car loan without collaterals with their loan against car policy. You can apply for loans against new cars and used cars. Carefully read the terms and conditions of new car vs used car loan. The bank makes it possible to apply for different vehicle loans. Choose from different types of car loan at Bank of Baroda.
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Documents for a Successful Car Loan Application
Applying for a car loan is a great way to own a car and repay by manageable EMIs. Loans are a powerful instrument planned by financial institutes like banks, for borrowers who can aspire to a better living by planning and calibrating expenses to achieve better material goals. Loan eligibility comes with certain criteria and documents are needed to qualify a candidate for a loan. The documents are evidence of loan eligibility and a transaction between the borrower and the lender.
What Is The Ideal Tenure For Car Loan?
The desire for owning a car is gradually growing in India, according to TechSci Research (https://bit.ly/3OT1o5A). The Indian car loan market is poised for a “compounded annual growth rate (CAGR) of over 8 per cent in value terms and will reach USD60 billion by FY2026." A shift from combustion engine vehicles to electric vehicles seems to be the trend.