What is the difference between a commercial vehicle loan and a car loan?
The amount of the Facility may be enhanced for funding the insurance premium at the request of the Borrower keeping the monthly Instalment amount constant and varying the number of monthly Instalments accordingly. “Indebtedness” means any indebtedness whatsoever of the Borrower/s at any time for or in respect of monies borrowed, contracted or raised or liabilities contracted by whatever means (including under guarantees, indemnities, acceptance, credits, deposits, hire-purchase and leasing). Applying for a car loan is easier as it requires less documentation as compared to a home loan. Also, there is no additional collateral asked for as against in the case of the former. Some lenders even offer discounts to women on the interest rate charged. Earlier, buying a car was a milestone in one’s life as one had to shell out a huge amount of money, but now one can simply take a car loan.
For most of the situations, during purchase of car, the borrower will apply for a specific car loan. The consumer may also utilise a personal loan for purchasing car. The bank you choose will collect your documents and initiate the application processing, which includes checking your CIBIL score, the value of the asset , eligibility conditions, and more, and then give a decision on your loan application based on the evaluation results.
Lenders offer a flexible repayment period generally stretching between 1 and 7 years. A lender levies many charges while accepting auto loan means the loan application or on the early loan closure. The amount can be of the ‘Ex-showroom’ price or the ‘On-Road Vehicle’ price.
Banks may provide loan amounts ranging from 80% to 90% of the car’s on-road cost. There are multiple ways through which you can get a new car loan. You can click on apply loan below to start applying and fill basic information to check your loan offers.
- Bank appeals to all the customers not to respond to such phone call/email/SMS and not to share their bank account detail with any one for any purpose.
- Some lenders do not allow prepayment and some charge a penalty on the leftover amount of repayment.
- Once all outstanding dues have been cleared, please submit a foreclosure request at the Loan Center, and we will begin processing your request.
- With Two-Wheeler Loans, you can buy geared motorbikes and non-geared scooters.
Hidden Fees and Charges – Sometimes what appears as obvious could have a hidden element. However, we advise against it, since used car loans cannot be easily be availed. There is also no use going for a personal loan for purchasing a car.
An event of default howsoever described occurs under any agreement or document relating to any Indebtedness of the Borrower/s or if any other lenders of the Borrower/s including financial institutions or banks with whom the Borrower/s has entered into agreements for financial assistance have recalled its/ their assistance or any part thereof. In the event such Product is offered as security to ICICI Bank, the registration of the Product with the relevant Authority should be made clearly indicating the fact that such Product is/are exclusively charged in favour of ICICI Bank. The Borrower/s shall forthwith deliver a certified copy of the Registration certificate to ICICI Bank.
This warranty generally lasts for two to three years or up to a certain number of kilometres driven. By the time the car is put up for sale, the manufacturer’s warranty may end. Depending on the car’s age, you may obtain a warranty for a used car, but you have to pay additional charges.
Hence, it is always advisable to pay some amount upfront as it also has numerous benefits. Yes, a charge of Rs. 2500 plus taxes would be applicable if you cancel your Car Loan. Apart from this, certain additional charges such as stamp duty charges, interest accumulation, etc. may also be applicable. If you would like to place a cancellation request, our representative will provide you with all the necessary details at your nearest Axis Bank Loan Centre.
Used cars are usually a lot more affordable and ideal for people who have recently learned to drive. Depending on the age of the used car, it may require regular maintenance from time to time, which can lead to added costs. However, it typically runs smoothly for years without incurring extra maintenance costs. Lenders typically disburse the funds directly to the vehicle dealer, allowing you to purchase and register your vehicle instantly. To make sure your Car Loan is approved faster; the key is to provide all the necessary documents and complete your Know your Customer formalities. Individuals who are at least 25 years old at the time of application and no older than 65 at the conclusion of the loan term are eligible.
Such default interest shall be in addition to any other charges, which the Borrower/s is liable to pay to the Lender in terms of the Transaction Documents. Such default interest shall be computed from respective Due Date till the date of payment of such entire amount. The rate of interest as specified above is reasonable and represents genuine pre-estimate of the loss expected to be incurred by the Lender in the event of non-payment of any monies by the Borrower/s. ICICI Bank may, in its sole discretion, require the Borrower/s to adopt or switch to any alternate of mode of payment and the Borrower/s shall comply with such request, without demur or delay. The method for payment as selected by the Borrower/s in the Application Form or the mandates given by the Borrower/ s under any payment mode cannot be cancelled or revoked by the Borrower/s without prior consent of ICICI Bank. If the Borrower/s cancels or revokes such mandates without the prior consent of ICICI Bank, such acts of the Borrower/s shall be deemed to have been committed with a criminal intent and ICICI Bank shall be entitle to initiate appropriate criminal proceedings against the Borrower/s.
The Borrower/s shall reimburse all sums paid by ICICI Bank in accordance with the provisions contained herein. The Borrower/s shall reimburse all sums paid and/or expenses incurred by ICICI Bank (including by or on behalf of their representatives / consultants / appraiser) in relation to the Facility within 7 days from the date of notice of demand from ICICI Bank. All such sums shall carry interest from the date of payment till such reimbursement at the rate of further interest specified in the Application Form. The Borrower/s shall at all times maintain sufficient funds in his/her/their bank account/s to ensure that the cheques or post-dated cheques, if any, issued by the Borrower/s are not dishonoured and the Instalments are received /realised by ICICI Bank before the applicable Due Date. The Borrower/s shall repay the Facility to ICICI Bank in such number of instalments, and with such instalment/s being of such amounts and on the Due Date as is specified in the Application Form ; such instalments are hereinafter referred to, individually, as an “Instalment” and, collectively, as the “Instalments”. ICICI Bank shall be entitled to vary/modify the Instalment/s (including increases in the amount of one or more Instalment/s) in the event of changes to the interest rate on the Facility.
This allows you to know if you eligible for a car loan before the hunt is started. This lets you know how much you would spend with no worries about price negotiation or loan’s term. This is the number that financial institutions observe while deciding whether or not you’re an investment risk. You should get a copy of your credit report before applying for loan, this ensures that you won’t experience any surprises of the application getting rejected. The benefit with Step-up EMI system is that as an individual’s income rises over a period of time, the car that may seem expensive now, becomes affordable by the next year. This method of EMI makes possible a larger loan amount that comes at smaller EMIs.
What if I don’t pay my EMIs on time?
It is, however, a wise move to check the list of cars that can be financed by the lender for the maximum amount offered with fewer charges involved. The lenders also charge some fees on early loan closure, known as ‘foreclosure charges’, it is charged on the outstanding loan amount. This charge varies from one bank to another, presently ranging between 5 and 6%. Make certain you benefit from them Don’t decide a automobile with a high service value because you have already got the EMI and the insurance premiums to pay.
It means you can pay a part of the principal outstanding to reduce your liability. A bank charges 3-6% depending on the tenure left to accept the part payment facility. However, this may not be allowed in the initial tenure https://1investing.in/ of the loan, say within 6 months. Low charges are restricted to the most certified clients with glorious credit score profiles, and never all mortgage applicants will be approved to obtain credit from automakers.
PAYMENT, PREPAYMENT AND OTHER CHARGES
So you save more money and also get an option to buy a bigger car in the same budget. Individuals who are at least 21 years old at the time of loan application and no older than 60 at the conclusion of the loan term. Multiple financers providing multiple offers leading to a range of options for the customer. The Terms & Conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at Bank’s discretion. The interest rates and processing fees are subject to change without prior notice and the offer expiry date mentioned is subject to interest rate fluctuations and will only be accommodated on a best effort and non-obligatory basis by the bank.