How much can the customer borrow?
A customer can borrow a loan amount of maximum of 3 times of his/her Net Annual Income / Net Annual Salary.
Do I need a guarantor for Car Loans? Or Do I need a co-applicant for a Car Loan?
Yes, guarantor is mandatory if the margin is less than 25% for loan above Rs. 20 Lacs. Spouse should be a co-borrower if his/her income is considered for eligibility.
What is the tenure for which I can avail a Car loan?
Repayment period of maximum 84 months for Individuals and 60 months for Firm/ Companies, valid in case of purchasing a new vehicles. Repayment period of maximum 60 months or Residual life of the vehicle, whichever is lower, valid for pre-owned vehicles.
Who can avail of Car Loans?
Do I need to provide any security or collateral to obtain a car loan from the Bank?
Hypothecation of Vehicle as primary security. Collateral security for Loan up to Rs. 20 Lac, spouse should be a co-borrower if his/her income is considered for eligibility. No Collateral, No guarantee. For Loan above Rs. 20 Lac, Guarantee of one person and Collateral security in form of FDR/NSC/KVP etc. or Mortgage of House/Flat. If margin offered is more than 25%, no guarantee and collateral security is required.
Allahabad bank offered me 60% of the car price. Most banks come up with a lot of documentation that's required to get your car financed; However with Allahabad bank used car loan has been a very positive experience.