Auto/Car Loans
Car loans and auto loans are highly common in India. This can be attributed to the growing Indian economy which has increased employment and changed consumer perspective. Everyone wants a vehicle of their own. This had led to an upsurge of personal car and auto loans in the Indian market. Usually all car and two-wheeler loans are personal. These bike loans include loans for mopeds, scooters and motorcycles. The former also includes car financing options for light vehicles used solely for personal reasons. These loans are also open to sole proprietorships, partnerships and home businesses. Generally, car finance loans in India include registration charges, insurance, one-time road tax and accessories.
General features of car loans in India:
Purpose -- You can take a car finance loan in India for:
» A new car, jeep or Multi Utility Vehicles (MUVs)
» Used car / jeep (not more than 5 years old). (Any make or model).
» Take over of existing loan from other Bank/Financial institution
Eligibility:
» Individual between the ages of 21-65 years
» A Permanent employee of State, Central Government, Public Sector Undertaking, Private company or a reputed establishment or
» A Professionals or self-employed individual who is an income tax assessee or
» A Person engaged in agriculture and allied activities.
» Net Annual Income Rs. 100,000 and above.
Loan Amount:
There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the net annual income can be sanctioned. If married, your spouse's income could also be considered provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for one-time road tax, registration and insurance.
» No ceiling on the loan amount for new cars.
» Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.
Type of Loan:
» Term Loan
» Overdraft - a) For New vehicles only b) Minimum loan amount: Rs. 3 lacs.
Documents Required:
You would need to submit the following documents along with the completed application form if you are an existing SBI account holder:
» Statement of Bank account of the borrower for last 12 months.
» Two passport size photographs of borrower
» Signature identification from bankers of borrower
» A copy of passport /voters ID card/PAN card.
» Proof of residence.
» Latest salary-slip showing all deductions
» I.T. returns/Form 16: Two years for salaried employees and three years forprofessional
/self-employed/businessmenaccepted by the ITO wherever applicable to be submitted.
» Proof of official address for non-salaried individuals.
Two-wheeler and bike loans come with flexible repayment options, ranging from 12 to 48 months. These loans are offered to salaried or self employed Indian residents between the ages of 21 and 65. You need identity and address residence proof in the form of your passport, ration card, driving license and various water, phone and electricity bills. Bike loans are hassle-free secured personal loans based on Fair Practices Code.