New Car Loans in India

The dream of millions of Indians have been fulfilled with the availability of the various car loan schemes offered by numerous financial institutions and banking organizations. You can bye a brand new SUV, MUV, jeep or even a small car by getting new car loans. The new car loans provided by the various banks and financial firms enables a consumer to own the latest model of cars from various manufacturers, like: Maruti, Hyundai, Tata Motors, Fiat, Ford, Honda and many more. New car loans include vehicle registration charges as well as the insurance premiums.

To avail a new car loan you have to deposit a margin money to the loan provider and the repayment is done in equated monthly installments. The eligibility criteria for availing new car loans from SBI (State Bank of India), the largest bank in India are as follows: The age of the individuals seeking loan should be between 21-65 years. Salaried person, professionals or self employed person can avail the loans. The net annual income of the individuals must be INR 100,000 and above. Maximum loan of about 2.5 times the net income of the individual can get sanctioned. Margin money of 15 % of the 'on the road price' of the car has to be paid.

Maximum repayment period for a salaried person is 84 months and for the professionals and self employed individuals it is 60 months. As a processing fee 0.5% of the loan amount has to be paid upfront. The rate of interest varies from 12% to 12.5% per annum.

Apart from the public sector undertaking banks you can even get new car loans from the various private banks. One of the leading private banks in the country, HDFC Bank offers you car loan for various model of SUVs, MUVs and different segment of passenger cars. Availing car loans from these private banks have gained immense popularity in the recent years due to their faster processing. You can even avail 100% finance on your car. New car loans up to 3 times the annual income of the salaried individuals and 6 times the annual income of the self employed professionals are offered. You can opt for varied repayment options ranging between 12 to 84 months.