Car Loan 101: Understanding the Process in India

That expensive car you’ve had your eye on is now more of an option than ever before. You can borrow money from banks and other financial institutions. Not so long ago, owning a home and a family car was considered a luxury that was out of reach for most people. But with a variety of car loan products available today, there’s no need to let your dreams remain unfulfilled.

Planning to buy a new car? A car loan from CarYanams allows you to finance up to 90% of the road value of your chosen vehicle.

How to apply for a car loan: Car loan application process

A simple car loan application from the CarYanams can help you own your vehicle. Car loans are available for employees and self-employed individuals.

Application Procedure

  • Borrowers must be above 21 years of age and loan repayments must be completed by the age of 70.
  • Check the required documents for a car loan with competitive low interest rates.
  • Apply online through the website keeping in mind your eligibility and CIBIL score.
  • Your loan application will be screened and processed and disbursing the loan is very easy.

Fill up the form

  • Download the CarYanams car loan form or fill it out online.
  • Enter your details, personal and non-personal details, proposed loan details, bank details and references (professional and business) in capital letters.
  • Add all the required documents and verify your eligibility.
  • Before filling out the form, use our car loan EMI calculator to know the loan amount along with the contract tenure.
  • Submit the form.

Document Verification

  • Before approving the car loan, the bank will verify all the documents submitted by the applicant.
  • If submitted digitally, the documents will be easily verified by the bank.
  • The bank will ensure whether the person is eligible to get the loan or not.
  • Personal details, CIBIL score, and income proof are checked to determine the repayment capability of the borrower.
  • Banks mitigate risk through a verification process.
  • Based on these eligibility criteria, the loan is approved.

Car Loan Approval

Car Loan approval is based on eligibility after document verification. For the loan to be approved, the applicant must submit all the required documents correctly. To get a loan, you must be above 21 years of age and the repayment period cannot exceed 70 years. You must be an Indian citizen and be either employed or self-employed.

If all these criteria are met, the bank will approve the loan.

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Car Loan Disbursement

Once the loan is approved by the bank and the documents are verified, the processing takes a few seconds. If the applicant meets the eligibility criteria, the bank will approve the loan instantly. To ensure a speedy process, check the eligibility factors and follow them strictly.

Once the loan is approved by the bank, the funds will be transferred directly to the applicant’s account.

Tips to Get an Instant Car Loan 

If you want to get approved for a car loan, you must make sure to follow the tips below. These will increase your chances of getting credit quickly.

  • Make sure your CIBIL score is above 701.
  • Repay your debts on time.
  • Find out about the admission criteria.
  • Submit all current documents.
  • Arrange for a deposit.
  • Make a reasonable repayment plan using our online EMI calculator.
  • Car loans are influenced by various factors.
  • Applicants should carefully read the eligibility criteria for car loans and use our online EMI calculator to determine affordability.
  • CIBIL Debt Interest Rates Offered by Banks
  • Loan Tenure
  • Loan Amount
  • Repossession Fees

Things to Keep in Mind before Taking a Car Loan

Like any other loan, a car loan also needs to be planned so that you can repay it comfortably without missing any payments. Before deciding to take a loan, keep the following in mind.

Budget

Set a budget and don’t exceed it. You know how much you can afford. Choose a car that suits your capabilities. All you need to remember is your monthly outgoings and any extra costs that you will incur after your car loan starts.

This includes maintenance costs, vehicle registration, insurance, road tax and any extra accessories you add to your car. If you can drive, you can save on the cost of a driver, but if not, you will have to add it to your monthly outgoings.

Repayments

Once you have calculated your outgoings, it is easy to plan the loan amount you can afford. Plan your monthly repayment instalments as well. Use our online automated loan calculator to calculate the best interest rate for you.

Loan Approval

Note that this is an important step because if the bank does not approve your loan, you will not be eligible for the loan. Once you have met the requirements, you can proceed by completing the correct documents.

Why you should choose CarYanams car loan

CarYanams finances new and used car loans up to 75%-100% at competitive interest rates. Car loan tenure is up to 7 years making it easy to repay. Loans up to 5 million rupees are available. Applicants can make prepayments or foreclosures at no extra cost. Processing time is minimal and banks work with minimal documentation. CarYanams allows you to apply for a car loan online.

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