To make the understanding simpler and easier for you, we will be answering some of the most asked questions in order and they are listed as follows,
How can one avail for a car loan?
The application for the car loan can be submitted in two ways, that is one is using the online platform and the second one is by visiting the lending institution, which is nothing but a bank. If applied online, you can simply visit the website of the bank you wish to take a car loan form and fill the details accordingly and submit the application form. For instance, if you wish to avail Bank of Baroda Car loan, then you can visit the web page of Bank of Baroda and select the car loan option that is available on their website. Once you have filled in all the necessary details and submitted the application, you will be approached by the bank of Baroda staff to let you know the further process to hand over you with their car loan. In case, you wish to make a visit by yourself to the bank directly, the staff there will let you know their protocol and you will have to follow it up accordingly.
What is the loan amount that one can be eligible for?
Well, one good thing about car loans unlike gold loans or personal loans is that the percentage of the loan amount on car loans offered by the banks is nearly up to a percentage of 90% on the value of the car. Whereas in gold loans it is just 75% on the value of the gold that is being handed over to the banks. However, one point to be considered is that there might be a slight variation in the percentage of the final loan amount depending on the lender's end. This is because the lender takes charge to verify certain things such as the cost of the vehicle, type of the vehicle, and also looks at the market value and price on the vehicle. In a few cases, if everything is meeting the requirements there is a possibility of the banks offering directly up to 100% value on the loan amount.
What is the time to process car loans?
Well, this might be up to a time of 3 days to a week and in the meantime the approval and sanctioning of the loan also takes place. This might be slightly longer than compared to that of the gold loans but is quite reasonable in comparison to other types.
What type of documents are to be expected by the banks from the borrowers?
To process the car loan, certain basic documents like proof of identity which may include PAN Card, Driving license, passport, Aadhar card of the borrower, any of these are accepted and added to these, income proof is also required by the banks for the individual’s car loan to be processed and accepted.
What about the rate of interests associated with the car loans and can they are negotiated?
Car loans have two types of interest rates associated with them namely, fixed interest rates and variable interest rates. Therefore, they can have a negotiation with the lender on the rate of interest. But again all these may depend on your regular repayment and your credit score, for the lender to gain a certain amount of trust in you. Therefore one should always make sure to repay from time to time without getting the loan to be at default. This way, there is the chance to get some best offers on the internet rate for reasonable loan amounts which are offered by the banks.
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