1. What is the maximum loan amount that I am eligible
We offer the car loan upto 100 percent of the car cost. Usually, financial institutions /
banks offer loan up to 90 percent of the car value, though the final loan amount may differ
with each financial institutions. The loan amount that you get depends upon a number of factors,
like the price of vehicle, body type, brand and model, resale value, etc.
2. What are the list of documents required for Loan?
You are required to submit your identity, income and residential proofs for applying loan.
3. How long does the loan processing take?
Post verification of above documents, it takes around 2-7 days in processing and sanctioning the loan.
4. What are types of ROI (Rate of Interest) on Loan?
Two types of rate of interest – Fixed and Floating. You need to confirm this
beforehand whether your bank provides the one that you want.
5. What is EMI?
EMI, stands for equated monthly installment, is the monthly amount payments
we make towards a loan we opted for. “EMI payments include contributions towards
both principal and interest on the loan amount.
6. What can be the tenure for car loan?
Car loan tenure ranges from 1 to 7 years. Short tenure means you will have
to pay higher EMI and long tenure means lesser EMI value.
7. What is CIBIL score?
CIBIL or the Credit Information Bureau (India) Limited is a Credit
Information Company that collects information of an individual’s loan
and credit card payment details, and provides a credit score based on
the same. Bank, financial and credit institutions use this score to evaluate
8. What CIBIL/credit score is considered to be safe for car loan?
The range of Credit or CIBIL scores is between 300 and 900.
750 is an average score that is most commonly accepted by banks
for accepting loan applications. An applicant with a score above 600
may not find too many hurdles while applying for car loan. A score of
750 is commonly readily accepted by the banks and they are quite willing
to offer credit services to such applicants.
9. In which cases does a loan application get rejected?
1A bad credit score can lead to loan application getting rejected.
Or, if you a defaulter in any way in your past loans. If you are applying
for loan for the first time, then the bank will consider your assets, income,
10. What are the modes of paying EMIs? What to do in case of pre-payment?
You can opt for ECS or post-dated cheques. ECS (Electronic Clearing System)
is facility wherein you can request the bank to auto-debit the monthly EMI amount
from your bank account. In case of car loans, you can pre-pay the entire loan amount
after 6 months to 1 year. You cannot make part payments in car loans. However, you need
to check the rules and guidelines with your lender.
11. What happens if I get late in paying the EMI?
It is important to pay all your EMIs on time. Some banks allow you to pay the EMI
after due date, along with a late payment fee. However, this can happen only once or
twice. Beyond that, you may be considered as a defaulter. In that case, the bank may even
take over your vehicle. Also, this highly affects your credit score and reduces your chances
of getting any kind of loan approved in future.
12. Why do I need a good credit score to get my loan sanctioned?
A good credit score ensures you get loan approval.
You can still get a loan but at a higher interest rate.
Before applying for any type of loan, it is recommended
that you get your credit score checked and get suggestions
on how to improve it.
13. How does Bank assess loan applicant?
Banks assess the applicants based on their income, income source and assets.
Every applicant is required to submit enough proofs of income to satisfy the
bank that he or she will be able to repay EMIs on the loan amount. The most common
proof that the banks ask for is the bank account statement for the past three months.
The banks typically charge more interest rates to the applicants who pose risk to the banks.
14. Is there any age limit for applying for a loan?
Yes, you must be in the range of 18 to 75 years to be eligible for applying for a loan.
15. Can a bankrupt apply for a loan?
Yes, if he has been released from all the obligations for at least 12 months.
However, even in that case, the bank will ask you to state the reasons for that
and may even charge you a higher interest rate. This is typically because you will
be at a higher risk of not being able to repay on time.
16. Can I reapply for a loan in case I have been declined once?
Yes, you can reapply for a loan. However, getting your loan approved
totally depends on whether you fulfill all the requirements this time.
You need to have a satisfactory credit score. In case you do not have good
credit score, you may be charged a higher rate of interest for the applied loan.