A car loan is a personal loan that allows the potential buyer to pay the vehicle off in monthly payments instead of having to pay the full price all at once. ... To qualify for an unsecured loan the borrower must have a very high credit score and also issue a higher interest rate on the loan as well.
A car loan is a personal loan that allows the potential buyer to pay the vehicle off in monthly payments instead of having to pay the full price all at once. This means that a lending servicer or bank will pay off the car in full, while in return the borrower pays off the debt in monthly payments with an interest fee included as well..
• Simple Interest Loans: Simple Interest Loans are the most ../common type of auto financing available. The interest rate is based on the outstanding balance of the loan. Borrowers can save on interest costs by paying more than their standard monthly payment.
• Pre-Computed Loans: Pre-Computed Loans refer to financing where all interest and principal payments are pre-calculated before the borrower and lender agree and sign the paperwork. Although this loan was widely used in the past, most people don’t opt for this restrictive method of financing because it doesn’t allow for early repayment of the loan.
• Minimum 21 years of age
• Maximum 70 years of age at maturity (conditions apply)
• Minimum Net Annual Salary of Rs. 2,40,000 p.a. for all approved car models
• Income eligibility based on latest salary slip and Form 16
• Minimum of 1 year continuous employment
Flexible contract terms, or length are available (ranging from 2-10 years)
A residual can be applied to the loan, reducing the monthly instalments
Borrowers have a choice of fixed or variable interest rates
A tax deduction may be applicable if the vehicle is to be used for business purposes
Lower interest rates are available as the loan is secured against the car