Vehicle Loan | Vehicle Loan Interest Rate | Processing fees

Vehicle Loan

Vehicle Loan

Lending companies give loans on both new and second Vehicle. However, the interest rates on these two are different. The rate of interest for a replacement vehicle is between 9.25 -13.75 per cent, while the rate of interest on old cars is between 12.50 and 17.50 per cent.

Who can take a vehicle loan?
There are some conditions before applying for a Vehicle loan, which you want to look out of. It includes information about age, minimum salary, sort of job and residence.

  • Proof of identity (PAN card, passport, driver’s license etc.)
  • Address proof like Voter I Card, Passport
  • Age proof
  • Photograph
  • Vehicle papers

Proof of income like three months salary slip, six months statement, tax returns.
Some companies don’t finalize loans without a Vehicle insurance copy and driver’s license.

loan depends on your age and income. what proportion loan you get for the car depends on the lending company. At this point, usually, a Vehicle loan is out there for four to 6 times of your annual income.

Up to 80-90 per cent of the worth of the vehicle is financed. However, some banks finance up to 100 per cent. It is often ex-showroom price or on-road price.

Ex-showroom price is the amount paid to a dealer instead of in place of shopping for a car. Once you bring the car to run on the road after paying the registration charge, insurance, road tax etc. then it’s the on-road price.

When you choose an automobile loan for a second user car, then the expenses incurred in re-registration aren’t covered.

What are the expenses during a Vehicle loan?
Banks charge tons for giving loans or repaying loans before time.

  • Processing fees are charged once you apply.
  • This can be 0.4-1 per cent of the loan amount.
  • Banks charge fees for repaying the loan before time.
  • Some banks charge between five and 6 per cent on this. However, some banks don’t charge for it.

Some banks offer part payment facility to repay a Vehicle loan. This suggests that whenever you’ve got money, you’ll repay a neighbourhood of the loan. Some banks also charge on payment. you can’t repay the loan within six months of taking a Vehicle loan.