A car loan is the most availed financial product in the country. This is due to the rapid growth of the auto industry along with foreign car manufacturers stepping in the Indian markets. To add, the borrowing capacity of the population has also increased due to which car loan becomes a preferred method of financing your purchase.
The auto manufacturers have tied up with various banks and lending companies that bring you attractive deals on your next car. There are a plethora of options in the auto market that you can choose depending on your preference. Car finance options are available across all models and make that keeps you at peace of mind.
With your favourite car shortlisted, you no longer need to visit the branch office of your lender. With the digital revolution in India, most lenders have started to provide for a car loan online.
Let’s look at the step by step guide to applying for a car loan online –
Step 1 – Select your lender
Most financial institutions including Non-Banking Financial Companies (NBFCs) offer car loan facilities. But selecting a reputed lender is important as they offer you competitive car loan interest rates. Once you shortlist your lender, visit their online portal to initiate the application process.
Step 2 – Check your eligibility
Availing a car loan facility requires some eligibility criteria that need to be met. Car loan eligibility differs among different lenders and is primarily based on your income, age, employment status, or whether self-employed. You can use the online calculators to compute your eligibility by entering the above parameters. You can use this tool to estimate whether you meet the eligibility requirements or not.
Step 3 – Selection of loan amount and tenure
On checking the eligibility criteria, the next step is to select the amount of loan you want to avail and the tenure. This will determine your equated monthly instalments. It is crucial to identify whether you can apportion that specified amount each month from your income. Car loan facilities are now offered up to 100% of the on-road price of the vehicle. Remember that excessive borrowing isn’t a wise financial decision too. Borrow as per your need. Excessive borrowing can lead to paying more interest. An EMI calculator can come handy in determining the amounts to be paid for each instalment.
Step 4 – Submit documents
For an online car loan application, you will need to submit the documents for verification. These can be submitted either by visiting the authorized branch office or through online mode. Some common documents that are required for verification are ID proof, address proof, and your proof of income.
On successful submission, the lender will begin processing your loan application.
Generally, car loan applications are processed within a couple of days depending on the processing by the lender. Make the best of online car loan application facilities and surprise your loved ones with your next family car.