car-loans-online-overview

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Car Loans Online Overview

Owning a car is a dream for many individuals. If you are planning to gift a new car to your parents or yourself and are looking for financial aid in the form of a loan, you are in the right place. We at LMV Financial Services assisted many individuals in getting Car Loans Online for purchasing their dream car. We aim to provide you with a car loan at the best interest rate with the leading banks in the country. With our assistance, you can get a pre-approved car loan at a low-interest rate and high repayment tenure. You can use our EMI calculator to find out the details about the car loan here and now.

Avail car loans with 100% on-road finance with us. Before applying for a car loan, ensure you have the eligibility required. With our car loans, you can buy any car of your dreams, from luxury to sports cars. The car loans are available to salaried employees, self-employed individuals, business people, professionals, etc. Get the best funding for your vehicle with the best suitable loan from the banks available. Depending on your choice of car, our experts suggest the best Car Loan Finance from the leading banks in the country.

Eligibility Criteria for Car Loans

The eligibility criteria are different for different banks. Here we have shortlisted the requirements that most banks abide by to shortlist an individual to sanction Car Loans Online.

  • The age of the car loan applicant must be between 21 and 65 years.
  • The minimum monthly salary of the individual should be Rs. 25,000. The self-employed individual's annual income must be no less than Rs.3 lakhs.
  • The individual must have worked with the current employer for at least the past year. The self-employed individual must be in the business for at least two years.
  • Whether salaried or self-employed, business people or individuals working for a government organization or a private company can apply for a car loan.
  • Check out your emi options now from our Car loan emi calculator

Documents Required to Apply for a Car Loan

  • Identity proof like Aadhaar, Passport, Driving license, Voters ID card, PAN card
  • Address proof like Aadhaar, Passport, Driving license, Ration card, Utility bills
  • Proof of income
  • Form 16
  • Salary slips for salaried employees
  • Latest Income Tax Returns
  • Bank statements for the last six months

Features and Benefits of Car Loan

A car loan is one of the significant loans taken by individuals to fulfill their long-cherished dream of owning a car. The borrower must know a car loan's various benefits and features. While these benefits and features are general, individuals with maximum eligibility for a loan are prone to get customized Car Loan Finance.

  • With a car loan, you can get your dream car home without having all the funds.
  • You can get the entire on-road car price as finance from the bank through a car loan. This eliminates the down payment procedure.
  • You need not sacrifice your dream car, be it a sports car or luxury car, due to its expensive pricing, as car loans are offered in crores.
  • There is no need to submit collateral while taking a car loan, as the car itself acts as a surety.
  • Getting a car loan is much easier than any other because individuals with average credit scores may also get a car loan sanctioned.
  • Car loans are granted only under fixed interest rates, so there is no question of paying fluctuating interest.
  • A decent credit score is what loan lenders look for. You will likely get a car loan at lower interest rates if you have a high credit score.
  • You can also take a car loan to buy a secondhand or pre-owned car.

How to Get Your Car Loan Approved Faster?

If you consider availing of a pre-approved Car Loans Online, follow the steps below.

Maintain your Credit Score

The credit score is crucial for the loan borrower and the lender. If you seek a car loan at a lower interest rate, you have to ensure that your credit score is 750 and above. If the credit score exceeds 750, the interest rate will be slightly higher. An application with a low credit score is highly prone to rejection.

Pay EMIs On Time

You should pay off EMIs promptly to get in the good books of the loan lender. Make sure to pay your EMIs promptly, as the credit profile will be considered by the lender while approving the loan. If you pay the EMIs on time, your lender will likely grant you the car loan quickly.

Compare Car Loan Interest Rates

You can get a car loan to purchase a new or used car, and there are not one but multiple types of car loans available at different interest rates. Depending on your requirement and repayment flexibility, you can choose the right car loan for yourself.

Go for the High Down Payment Option

It is a good idea to go for a high down payment option as it will reduce the amount of loan taken from the bank. It will further reduce the number of EMIs, the repayment tenure, and the interest rate of Car Loan Finance.

Go with the Budget

Always go for a car loan within your budget as it may affect your repayment capability. Don't go overboard with the loan, as it may be difficult for you to repay it if it is out of your budget. Especially when you have other EMIs to pay, please don't take a loan out of your budget as it may push you to financial troubles.

Choose Loan Option Wisely

Always choose a loan option with low monthly EMIs and short repayment tenures. Don't fall prey to the tricks of the lenders and get into a loan that is too expensive for you to pay.

Pre-approved Home Loan

Pre-approved loans are offered to those with enough credits and financial status to repay the loan in time.

Home Purchase Loans

Home purchase loans are given to borrowers planning to purchase a home or flat.

FAQs

Will the bank provide a 100% loan to buy a car?

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It ultimately depends on the lender; while few banks provide 100% funding, few banks offer only 90% of the on-road price to buy a car.

Is it okay to prepay the entire loan amount?

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Yes, absolutely! You can prepay the entire car loan amount and save on your EMI interest rates. Nevertheless, most banks allow the prepayment option only after six months of the loan tenure. Also, you need to pay the penalty for prepaying the loan.

Is there a need for collateral while applying for a car loan?

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While other types of loans may require collateral, Car Loans Online does not explicitly require any such security as the vehicle acts as a surety. Most banks don't ask for collateral, but if the applicant's annual income is not up to the mark, they may have to bring a guarantor.

What are the minimum and maximum loan repayment tenure?

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The minimum repayment tenure is 12 months, and the maximum repayment tenure is 84 months (7 years).

What is the ideal credit score required to buy a car?

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The ideal credit score required to buy a car is 750 and above. You are, however, eligible to apply for a car loan even if you have a credit score of 600, but there are high chances of your loan getting rejected.

Will the credit score impact the interest rate?

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Yes. A high credit score implies low-interest rates in most banks. Similarly, low credit scores mean higher interest rates.

Is it okay to take a car loan from a car dealer?

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Yes, but you must first check if the car dealer is trustworthy. Also, before taking a car loan, research the best car loan that suits your requirements, and then go for it. You better go for a bank or car dealer that offers competitive interest rates.

Do banks offer loans for used cars?

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Yes. Most of the banks offer loans for used cars. They offer up to 85% of the car value as a loan to the borrowers. However, the vehicle shouldn't be more than five years old.

What do lenders consider while sanctioning a car loan?

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The credit score is the first and foremost thing lenders consider while sanctioning a car loan. If it is 750 or more, the borrower's loan is almost approved. The other factors the lender considers are employment status, residence, job stability, income, debt-to-income ratio, etc.

What is the lowest EMI I need to pay for a car loan?

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Equated Monthly Installments, popularly known as EMI, is the loan that the borrower has to pay against the loan taken from the banks or NBFCs. The EMI is calculated based on the repayment tenure, loan amount, and interest rate. If you want to calculate the EMI for your car loan, you can use our LMV EMI calculator available on this page and calculate it.

What should be the minimum down payment to own a car?

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It entirely depends on the individual borrower. If the borrower wants to avail of a small Vehicle Finance Online, he needs to pay a higher down payment and vice versa. The lower loan amount means lower interest rates, and the higher loan amount means higher interest rates. Also, the higher loan amount implies longer repayment tenure, and the lower loan amount indicates lower repayment tenure. So, it is up to you to choose the minimum or maximum down payment you want to pay for your dream car.

Can I get a lower interest rate if I have a good credit score?

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Yes! You can get a car loan at a lower interest rate if you have a good credit score of 750 and above. You can even request the bank to reduce the interest rate if you have a decent credit score, indicating your higher repayment capacity.

EMI Calculator

Car Loan Amount

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20

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