Car loan - It is a personal to purchase an automobile. A car loan is one of the most popular reasons for taking out a loan. A car loan is basically an unsecured personal loan. All the major financial institutions can offer you a car loan. For car loans you can expect higher interest rates (APR) because, this is caused due to the enders risk.
Eligibility for the car loan are
The LTV also depends on the car model. Higher LTV ratios are available under specific enhanced income eligibility criteria. Almost all are giving a minimum loan amount of Rs. 1 lac for new car. Minimum loan amount for used car is Rs.75,000.
To enhance your loan amount, the certified income of the co-applicant is considered, if requested by the applicant. The co-borrower can be the spouse or son/daughter living in the same city. Since the co-borrower is the joint applicant for the loan, he/she has the obligation to repay the loan along with the main applicant. Similarly, a guarantor can be any relative or director (in case of a private limited company). The guarantor provides the guarantee that the customer will repay the loan as per the terms & conditions of the loan. However, in both cases, the asset has to be registered in the name of a single owner, not joint ownership.
Interest rates also depend on Car model, Loan Tenure, Customer Location and Profile, etc. No processing fee for Loans on New Cars. Some amount is charged for old car.