A car loan/auto loan is secured against the vehicle you intend to purchase, which means the vehicle serves as collateral for the loan. If you defaulton your repayments, the lender can seize the auto. The loan is paid off in fixed installments throughout the loan. Much like a mortgage the lender retains ownership over the asset until you make the final payment.
Most car loans are fixed at 36, 48, 60, or 72 months. And just like the personal loan, the shorter the term, the higher the monthly repayment and vice versa. A less-than-average credit history won’t necessarily stand between you and your car loan (unlike a personal loan). It will also have less impact on your interest rate or borrowing amount, which is dictated by the price of the car.
Eligibility Criteria:-
Age
Salaried21 – 60 years Self-employed18 – 65 years
Annual income
Salaried Rs 25,000 Self-employed Minimum turnover of Rs 40 lakh
Credit Score
Salaried 700 Self-employed 700
Loan Tenure
Salaried Up to 7 years Self-employedUp to 7 years
Loan to Value Ratio
SalariedUp to 100% Self-employedUp to 100%
