Avail almost all types of car loans now!
Looking for Best Car Loans?? If it’s what you are searching for, then you are at the right spot!! Because at Indexia Finance, getting a car loan is a lot simpler. We at Indexia Finance, give you access to various leading and prominent banks in the country. To avail our services, all you need to do is just fill the online-form (will take just a few minutes). After you submit your details, we let the banks (with whom we have partnered), evaluate your details in order to provide you with an appropriate deal.
If you just go to a showroom and pick out a car and do the financing, you could get the car, but in all probability would also end up paying some thousands of rupees more than you should have. Today the Internet has revolutionized the way we buy cars. So it is important to educate yourself before-hand, about how to get the best deal when you buy a car.
Buying a car, now, has become easier than ordering a home-delivered pizza. Banks today provide easy finance schemes where you can drive away with a car. But deciding on the right car finance is very challenging. You may be confused on which one is beneficial for you and might end up with one that has various “invisible” strings attached to it.
So here are a few things, we at Indexia Finance think might help you in choosing the right car-financing option
The first thing you need to know, before availing for car loan, is the type of car you want and see if it suits your estimated budget. Narrow your choice of cars, to two or three. Compare rates of all banks and get their best rates. Also ask for recommended dealers for the car(s) of your choice to see which dealer is giving you the best deal. You apply for a loan and you buy a car. You go to a bank and fill out some forms and they disburse your check. Sounds simple enough, doesn’t it?
However, your application could be denied or cancelled, or you may get an offer at a high interest rate if you have bad-credit history. All banks go through your financial history when you apply for a loan. Different banks have different standards of judging a credit history. So it is wise to clear up all old debts, if you have any, before you Apply for a Car Loan. This will help you get your loan approved at lower interest rates.
You repay the loan in equated monthly instalment (EMIs), comprising of principal amount and the Interest Rate. The EMI depends upon the loan amount, the interest rate and the tenure of the loan.
Also don’t just evaluate the deal based on monthly EMIs. Calculate how much you will be paying over the tenure of the loan at EMI Calculator. This in turn is a function of Interest rates. The interest rate depends on the Flat Rate and Reducing Balance method. In the Flat Rate of interest, the principal amount (on which interest calculations are made) remains same for the entire tenure of the loan. The total interest is divided over the number of installments to derive the EMI.
Reducing Balance, means reducing the paid-up principal amount (on which interest calculations are made) from the outstanding loan amount. The interest you pay is calculated on outstanding principal balance. Car Loan typically doesn’t require a guarantor but if your income does not meet the credit criteria, then you will be required to have a guarantor for your loan. Guarantor can be your spouse, if employed or a third party guarantee will do.
Processing fees is a one-time charge taken for processing and legal paperwork. At the beginning of the period, the bank requires you to pay 2-4% of the loan amount as processing fees. For example, if you take Rs.5 lac at 15% for 5 years (60 EMIS) and charges you 2% as processing fees, you are in effect paying an amount of Rs.10,000. If you chose to pay up your entire money before the tenure, a Pre-payment penalty is charged. So know about such penalties before-hand to avoid future misunderstanding between you and the bank.
Also keep in mind that most banks offer you the option of pre-payment, but they do not give the flexibility of part-payment. You “have-to” insure your car. It is against the law to drive an uninsured car. You must get an insurance policy for a year’s duration, after which you have to renew it. The amount of insurance is equal to the market value of the vehicle and not the book value of the vehicle.
The premium is added to the EMI paid for the loan tenure and you are insured for the amount you have taken, incase something unexpected happens Assured amount will be given to the bank without burdening the members of the family.
So keep these few things in mind while financing your next car !You have reached the best spot to get the best loan, for your car, from the best banks. Go, fill the application form now!
Required Documents For Car Loan
Common Documents :-
- 2 Photographs each applicant & co- applicans
- Passport of each applicant & co- applicant
- Utility Bill of office and residence (latest month) each applicant & co- applicant
- Pan Card Copy each applicant & co- applicant
In case of Salaried :-
- Employment certificate from the employer
- Copies of pay slips for last 6 months and TDS certificate
- Last 2 Years Form 16 issued by employer Bank statements
Income Documents :-
- 3 yrs ITR, computation of income, P&L, Balance sheet, +all Annexure & schedule, Dr. & Cr. List. (self & CA attested)
- 3 yrs ITR, computation of income, P&L, Balance sheet of individual
- Last 12 months bank statement of individual
- Last 12 months bank statement of the company, and all the EMI reflection if any loans going on
- Sanction letter of all Loans & OD/CC (if any)
- Sales & Purchase Summery – last 3 years (till date)
- Dr. & Cr. List – last 3 years (till date)
Additional Documents :-
- MOA & AOA copy / Partnership Deed
- List of Directors/ Partners & Shareholder
- Pan card copy of Company
- Business Proof (Shop & Establishment Certificate, VAT, Sales Tax, Service Tax, IEC)