Tips and Tricks for Car Loan in New Delhi

Car Loan in Delhi

Car Loan in Delhi

Buying a car is an investment and not just an expenditure. Moreover, it’s a major one too. So, buying a car shouldn’t be taken lightly, even if it’s for something as simple as getting around in your city or going out of town for occasional weekend getaways. Fortunately, getting a car loan for a new car in Delhi is much easier than it used to be. In fact, now that the lending landscape has changed so much over the past few years, you should have no trouble getting approved for the loan you need. But let’s first take a look at what a car loan for a new car entails.

What Is A Car Loan For A New Car?

credit A car loan is basically a loan you take out to buy a car. The terms of your loan will depend on the lender and the type of car loan you opt for. Regardless of the lenders or loan types you choose, the key thing to keep in mind is that you borrow money to make the purchase of a car. At the point in time you make the loan payment, you’ll have paid off whatever amount the original lender loaned you plus interest. If the terms of your loan stipulate a certain number of months, you’ll have also paid off the loan.

Also Read: Axis Personal Loan A Pal For Financially Troubled People 

How To Get A Car Loan For A New Car In Delhi?

There are plenty of ways to get a car loan for a new car in Delhi, but in this article, we’ll focus on the traditional method: taking out a loan from a bank. There are a couple of things you can do to make things easier for yourself when it comes to getting a car loan for a new car.

First, shop around for the best loan rates. If you can snag a loan from a number of different lenders at multiple rates, you’ll be in a much better position to get the best deal than if you go with one lender at one rate. Next, try to get a co-signer. While it’s always best to find a loan that requires no cosigner, in some cases, you may find a lender willing to accept one.

If that’s the case, get your parent, sibling or other close family member to be your co-signer. That way, you’ll have more flexibility in the event you don’t make the loan payment at the designated time or you get in over your head and need a little extra financing to stay afloat.

When To Get A Car Loan For A New Car?

The best time to get a car loan for a new car is when you have a steady source of income. And, for most people, that’s when you’re making full payments on your mortgage. There are a few other scenarios in which you may be able to get a car loan for a new car, but you should proceed with caution. For example, if you have a source of income other than the one you’ll be using to make the loan payments, and if you can get the loan terms you need, then you may be able to get a car loan at that time.

Things You Should Know Before Getting A Car Loan In Delhi

So, you’ve decided that now is the time to get a car loan for a new car. Great choice! If you haven’t already, it’s a good idea to sit down with your financial advisor and take a look at your current financial situation. This will help you determine how much you can realistically afford to spend on a car and what kind of car you can afford. When you know those things, you’ll be better prepared to choose the right car for your situation and be more likely to get a car loan for a new car at the right amount. Before you sign any paperwork, make sure you’re up to speed on any changes in the lending landscape that would affect your loan.

Car Loan Interest Rates In New Delhi

Bank Interest rates Minimum income Processing fee
State Bank of India 9.30% p.a. to 9.80% p.a. Salaried – Rs.2.5 lakh p.a.; Self-employed – Rs.3 lakh p.a.; Agriculture workers – Rs.4 lakh p.a. Nil
HDFC Bank 9.75% p.a. to 10.60% p.a. Rs.3 lakh p.a. 0.4% of the loan amount subject to a minimum of Rs.3,000 and a maximum of Rs.10,000
ICICI Bank 9.30% p.a. to 12.85% p.a. Contact the company for more details Rs.3,500 to Rs.8,500 (depending upon vehicle type)
Axis Bank 9.25% p.a. to 11.50% p.a. Rs.2.40 lakh p.a. Rs.3,500 to Rs.5,500
Federal Bank From 9.20% p.a. onwards Rs.20,000 p.m. N/A
IndusInd Bank From 10.65% p.a. onwards Salaried – Rs.2.50 lakh p.a.; Self-employed – Rs.2 lakh p.a. net profit 0.5% of the loan amount subject to a minimum of Rs.2,500
Punjab National Bank From 9.05% p.a. onwards Rs.20,000 p.m. Rs.1,000 for loans under Rs.6 lakh Rs.1,500 for loans over Rs.6 lakh
Oriental Bank of Commerce Male borrowers – 9.25% p.a.; Female borrowers – 9.15% p.a. Rs.30,000 p.m. 0.5% of the loan amount subject to a minimum of Rs.500 and a maximum of Rs.7,000
Jammu and Kashmir Bank Fixed – 11.25% p.a. with monthly rests; Floating – Base rate + 1% p.a. with monthly rests Rs.3 lakh p.a. 0.5% of the loan amount subject to a minimum of Rs.500
Andhra Bank 1-year MCLR + 0.70% Rs.1 lakh p.a. 1% of the loan amount subject to a minimum of Rs.1,000 and a maximum of Rs.25,000
Bank of Maharashtra 8.95% p.a. Rs.3 lakh p.a. 0.25% of the loan amount subject to a minimum of Rs.1,000 and maximum of Rs.15,000
Bank of India 9.5% p.a. Contact the bank for details Rs.500 per application
Central Bank of India Fixed – 9.00% p.a.; Floating – 1-year MCLR + 0.40% p.a. Rs.2.40 lakh p.a. Contact the bank for details
United Bank of India From 9.15% p.a. onwards Rs.25,000 p.m. 0.59% of the loan amount subject to a minimum of Rs.600 and a maximum of Rs.11,800
Bank of Baroda 1-year MCLR + strategic premium + 0.25% p.a. Contact the company for details Rs.1,000 to Rs.2,500 + GST
Syndicate Bank 1-year MCLR + 0.50% p.a. Rs.2 lakh p.a. Rs.125 per lakh
IDBI Bank From 9.30% p.a. onwards (varies based on credit score of the borrower) Rs.2.4 lakh p.a. Rs.1,000 + GST
Canara Bank From 8.95% p.a. onwards Rs.3 lakh p.a. 0.25% of the loan amount subject to a minimum of Rs.1,000 and a maximum of Rs.5,000

Eligibility Criteria For Salaried And Self Employed Individuals

Criteria Salaried individuals Self-employed individuals
Age 21 years 21 years
Income Rs.20,000 p.m. As required by the lenders.
Income stability At least one year in the current job At least one to three years of business vintage.

Also Read: How to Refinance a Personal Loan? The Pros and Cons

 Bottom Line

Getting a car loan in Delhi is now easier than ever. You just have to shop around for the best loan rates and get a co-signer if needed. Be patient during the process, as it can take some time to get through all the paperwork, and you’ll be in good shape.

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