Car Loan

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Features and Benefits of Our Car Loan

  • Access to Immediate Funds: Get the financial assistance you need right away to purchase your car.
  • Flexible Loan Tenures: Choose from a range of flexible repayment periods that suit your budget.
  • Fixed Interest Rates: Enjoy stable monthly payments with fixed interest rates for the entire loan duration.
  • Customized Loan Amounts: Borrow an amount that fits your specific needs, whether you’re buying a new or used car.
  • Convenient Monthly Repayments: Benefit from easy-to-manage monthly installments that fit your financial situation.
  • Potential Tax Benefits: Depending on the loan’s purpose, you may be eligible for tax deductions.
  • Option for New and Used Cars: Apply for a loan to purchase both new and pre-owned cars.
  • Ownership from Day One: Become the owner of your car as soon as the loan is sanctioned, even before completing the full repayment.
  • No Need for Full Upfront Payment: Avoid paying the full car price upfront; spread your payments over the loan tenure.
  • Improve Credit Score: Timely payments of your car loan can boost your credit score.

Car Loan Eligibility and Documents

Here’s a look at the eligibility criteria for applying for our Car Loan.

Car Loan Eligibility

Eligibility for a car loan depends on factors like your income, credit score, and existing debts. Lenders will assess these details to determine if you can repay the loan. If you meet their criteria, you’ll be eligible for a loan; otherwise, you might need to improve your financial situation before applying.

Car Loan Eligibility Criteria for Top Banks

Though the exact requirements vary by bank, most lenders have the following common criteria:

  • Age: Typically between 21 and 65 years.
  • Income: A minimum of INR 20,000 per month.
  • Stable Employment: Whether salaried or self-employed, the bank may require a stable employment record.
  • Credit Score: A good credit score (generally 650 or above) is important for approval.
  • Work Experience/Business Vintage: Some banks may ask for a minimum duration of employment or business experience.
  • Existing Debts: Lenders also review any other debts or liabilities you may have to assess your ability to repay.

To find the most accurate eligibility criteria, you can either check with the bank directly or use their online eligibility calculators.

Car Loan Eligibility for Salaried & Self-Employed Individuals

For Salaried Individuals:

  • Minimum age: 21 years (at the time of loan application)
  • Maximum age: 60 years (at loan maturity)
  • Minimum work experience: 2 years (1 year with the current employer)
  • Minimum income: ₹3,00,000 per year (including spouse/co-applicant income)

For Self-Employed Individuals:

  • Minimum age: 21 years (at the time of loan application)
  • Maximum age: 65 years (at loan maturity)
  • Minimum business experience: 2 years
  • Minimum income: ₹3,000,000 per year

Documents Required to Apply for Car Loan

Here’s a list of documents required for the application:

  • KYC Documents: Valid photo ID proofs
  • PAN Card
  • Last 2 years’ ITR (Income Tax Return)
  • Salary Slip: Latest 3 months
  • Salary Account Statement: Latest 6 months
  • Signature Verification Proof

EMI Calculator for Car Loan

An EMI calculator helps you estimate your monthly payments for a car loan, making it easier to plan your finances. The RuLoans EMI calculator lets you check your EMI, eligibility, and compare different loan options before making a decision.

How to Use a Car Loan EMI Calculator:

  1. Enter the loan amount, interest rate, and loan tenure.
  2. Click “Calculate.”
  3. View the EMI amount, total interest, and repayment details.
  4. Adjust the tenure if needed to match your budget.
  5. Consider additional costs, such as insurance or processing fees.
  6. Confirm the details with the lender before finalizing the loan.

How is Car Loan EMI Calculated?

The EMI for a Car Loan is calculated using this formula:EMI=P×r×(1+r)n(1+r)n−1EMI = \frac{P \times r \times (1 + r)^n}{(1 + r)^n – 1}EMI=(1+r)n−1P×r×(1+r)n​

Where:

  • EMI = Equated Monthly Installment
  • P = Loan principal amount
  • r = Monthly interest rate (Annual rate divided by 12, expressed as a decimal)
  • n = Loan tenure in months

This formula helps determine your monthly repayment amount based on the loan amount, interest rate, and repayment period.