Sports Utility Vehicle Loans

The concept of auto finance and loans for buying a vehicle has become very popular in recent times. Since a substantial section of the automobile consumers are not in a position to shell out the entire sum needed on their own, getting vehicle loans from banks and financial institutions for buying a vehicle help them realize their dreams. The automobile companies in the process are able to raise their sales. The sports utility vehicle (SUV) loans comprise today a significant portion of the auto loans that are being offered by the automobile financiers.

The leading players in India in the field of sports utility vehicle loans are State Bank of India, Union Bank of India and others in the public sector, ICICI Bank, HDFC Bank, Standard Charted Bank, CitiBank, Kotak Mahindra in the private sector and auto finance divisions of automobile companies like Tata Finance which have emerged as leading sports utility vehicle financiers . The popular sports utility vehicle model for loans includes the variants of Tata Sumo, Tata Safari, Mahindra Bolero and Mahindra Scorpio.

The loan amount for a SUV varies from nearly 85% of the total ex showroom price to 90% which though could even go to 100% of the amount. The leading SUV financiers provide the finances to any individual with a degree of substantial financial stability. The loan amount varies, depending upon the precise needs of the consumers and overall terms. On service charges, the financiers usually ask for a 2.5% of financing amount or a specified sum and origination charges. In case of prepayment, some of them ask for penalty that goes to the tune of 4% of the principal outstanding with the borrower. The service tax and other government levies are applicable from time to time.

In terms of finances, the rates of interest keep on changing from period to period. Further, the loan amount, period of repayment and the borrower's ability to payment are the other factors that too are considered while allocating finance for buying a SUV. With a SUV loan, one can opt for a new vehicle, used SUV or even refinance an existing vehicle.

To know more bout sport utility vehicles and matter related to automobiles, browse through the pages of automobileindia.com.