🚗 Car Loan / Auto Loan – Complete Guide
What is a Car Loan?
A Car Loan or Auto Loan is a secured loan where the vehicle you intend to purchase acts as collateral. This means if you default on repayments, the lender has the right to repossess the vehicle. Ownership of the vehicle remains with the lender until the final installment is paid.
Much like a home loan, this loan is repaid in equated monthly installments (EMIs) over a fixed period.
🔄 Loan Tenure Options
Most car loans come with flexible tenure options such as:
- 36 months (3 years)
- 48 months (4 years)
- 60 months (5 years)
- 72 months (6 years)
- Up to 84 months (7 years) in some cases
💡 Shorter tenure = Higher EMI but lower interest paid over time
💡 Longer tenure = Lower EMI but higher interest cost
🧾 Key Features of Car Loan
- Loan Type: Secured (vehicle used as collateral)
- Ownership: Retained by lender until loan is repaid
- Loan Coverage: Up to 100% of vehicle value (On-road price)
- Interest Rate: Fixed or floating, depending on the lender
- EMI Structure: Fixed monthly installments
✅ Eligibility Criteria for Car Loan
| Criteria | Salaried Individuals | Self-employed Individuals |
| Age | 21 – 60 years | 18 – 65 years |
| Annual Income | Minimum ₹25,000 per month | Minimum turnover of ₹40 lakh/year |
| Credit Score | Minimum 700 | Minimum 700 |
| Loan Tenure | Up to 7 years | Up to 7 years |
| Loan to Value | Up to 100% of vehicle cost | Up to 100% of vehicle cost |
💳 Credit Score & Loan Approval
Unlike a personal loan, a low or average credit score might not stop you from getting a car loan. Since the loan is secured, lenders may still offer financing—although interest rates could vary slightly.
📈 Car Loan vs Personal Loan – Key Differences
| Feature | Car Loan | Personal Loan |
| Collateral Required | Yes (vehicle) | No |
| Interest Rate | Lower | Higher |
| Loan Tenure | Up to 7 years | Up to 5 years |
| Approval Flexibility | Higher (due to security) | Depends heavily on credit score |
🤝 Need Help Applying for a Car Loan?
We assist you in comparing lenders, understanding EMI options, and filing your application seamlessly.
📞 Call Now: +91-7752-443566 / 9098618647
🌐 Apply Online: www.gstsuvidhacentre.co.in
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