Automobile Finance

Every other day a new model of car is being launched in the country, how many times you must have wished to change that old car of yours and buy a hot set of wheels. However as you come back to earth, bitter reality bites you; realization dawns in that you don't have such a big amount of money to invest in a new car. Don't worry as several banks and financial institution have donned the role of new age Santa Claus to make sure that your dream comes true. Today car loans are not only available for brand new cars but they are also available for used cars.

In this section we will try to provide you with an insight into automobile financing so read on. State Bank of India which is one of the largest nationalized banks in the country offers you the following advantages

• Longer repayment periods up to 7 years
• Low processing
• No advance EMI along with the down payment effectively increasing the amount of loan
• Interest is calculated on the reducing balance method meaning every time you repay an amount the interest is calculated on the remaining amount and not on the one which is out standing at the beginning of the year.

The company gives a loan which is up to 2.5 times of one's net annual income, with the minimum income cap of the applicant being 75000 rupees per annum. The company sanctions loans for all new cars and for second hand cars which are not more than 5 years old. The bank also provides loans to people who don't have an account with the bank provided they furnish address proof, identity proof and other relevant documents. For more details click http://www.sbi.co.in

UTI bank offers loans covering 85% of the cost of the vehicle plus registration and insurance or 20 times the net monthly salary and you can repay the loan with in a maximum period of 5 years or 60 monthly equated installments.

Car Insurance:

Car Insurance gives the necessary cover if one meets with some unforeseen incident or an accident. Car insurance offers a number of benefits. A no claim bonus is given to the policy holder if no claims are made. It is transferable as it can be used even if one is changing the auto insurance company.

Used Car Insurance:

Used car owners shouldn't feel that they are sidelined. Used car insurances help the second hand car owners greatly. Those who can't afford the luxury cars and their high prices are opting for used cars.