What is Car Loan Mohali?
A car loan is a financial help offered by different banks and NBFCs to buy a car. The banks provide the necessary funding for purchasing a vehicle which can be on Ex-Showroom price or the On-Road price of the car. They offered the lowest interest rates and minimum document process.
Interest Rate of Car Loan
If the requirement of the applicant is less than Rs. Three lacs then the interest rate charged would be 10.25%.
Simultaneously, if the loan amount is between Rs.3 lacs to Rs.6 lacs, then the interest rate charged would be 9.50%.
For loan amount between Rs.6 lacs to Rs.10 lacs, a 9.25% interest rate would be charged.
If the loan amount varies from Rs.10-20 lacs, then the interest rate charged would be 9.00%.
For loan amount being more than Rs. 20 lacs the interest rate would be 8.70%. For more information about interest rates visit www.magicloans.in
Factors that affect Car Loan Interest rates in Mohali
Credit history: The interest rate depends on the credit history you have built in past years, the high cibil score will not only help you in getting a loan but will also empower you with a strong bargaining power.
Income level: Higher the income better are the chances for the approval of higher loan amount.
Amount of down payment: Higher the down payment made lesser will be the amount that the bank will have to lend you. As a result, the bank’s risk will go down. Also, it shows that your financial position is sound. You may get loan at a lower interest rate from the bank.
Tenure of the loan: Car loan is generally available for tenure of up to 7 years. It is generally seen that banks charge a higher interest rate for a loan of the shorter time period and vice versa. Longer tenors will enhance repayment capacity.
Car model and age: It is necessary for the bank to consider the car model in deciding the interest rate as on sale every model may not fetch the expected price. New cars are more easily financed than used cars; a high-end model will be expensive which means the borrower has to be able to pay the required down payment.
What is the Eligibility Criteria for a Car Loan in Mohali?
Firstly, the borrower must be an Indian resident.
After that, Minimum Income of the applicant should be Rs 15,000 per month.
Furthermore, Minimum 1 year Residential stability of the applicant is mandatory.
Beside that, Minimum 21 years of age is mandatory of the applicant.
Also, Minimum 1 year of employment stability is must.
What documents are required to apply for a Car Loan in Mohali?
When you apply for a Car Loan, these are the documents which are commonly required, so keep them handy.
Income proof: Need to submit your salary slips for the last three months and the statements of your bank account for last six months. For self-employed people, the requirement is to submit the audited bank account statements for last six months.
Employment Proof: Need to submit a copy of the appointment letter and a certificate of employment issued by your company. For self-employed individuals, the partnership deed or business establishment documents need to be submitted.
Tax Proof: Need to submit the IT return or Form 16 documents for the last two years.
Address Proof: Any government sanctioned KYC document can be submitted as proof of residence.
Age Proof: Any government sanctioned KYC document can be submitted as proof of age.
Mohali, also known as Ajitgarh and officially known as Sahibzada Ajit Singh Nagar, is a city in the Mohali district in Punjab, India. For more information on Car Loan, you can visit our official website www.magicloans.in