The amount of money availed to buy either a new or used vehicle or loan got against the existing vehicle. Vehicle loans are said to be one of the complex loan products in India as vehicle dealers tend to include various discounts in interest rates offered by vehicle manufacturers or lenders (banks & other financial institutions) to the buyer.
Types of Vehicle Loans
Benefits of Vehicle Loan
Owning your dream Vehicle has become easy with the availability of multiple options to avail of Vehicle loan provided by lenders today. You can choose your preferred one from the multiple options.
Features of Vehicle Loan
Depending upon the lender considerations in vehicle loan, there may be a host of benefits available to the customer when availing of a vehicle loan. The criteria may include preferred pricing for existing customers, minimal documentation, faster processing time. Some may even offer special interest rates to the existing account holder.
Checklist for Vehicle Loan
Residence address and ownership proof
Down payment dealer receipt
Photo identity proof
Bank continuity proof
Investment proof any like Fixed Deposit, Shares, Fixed Assets, etc
Comparison of Vehicle Loan Interest Rates in India
To get the lowest fee, comparison of Vehicle loan rates offers and cashback applying online through Goloanz. The following are some of the attributes that you may want to compare with the charges offered by several lenders (bank or financial institute).
Vehicle Loan processing fees – Most banks charges minimum processing fees of Nil to upto Rs.3,000.
Vehicle Loan insurance premium – The insurance premium varies from bank to bank depending upon the risk coverage under various policies.
Vehicle Loan prepayment and foreclosure – When you want to repay your loan partially before time, it is called part prepayment or entire amount before time, it is called foreclosure. Banks may commonly levy prepayment or foreclosure charges in such situations and these can range from nil to even upto 5%.
Vehicle Loan down payment – Banks offer Vehicle loan either at 80% of on-road price or 100% of ex-showroom price.