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Car Loans

Car Loans

Gone are the days when buying a car used to be a luxury and was difficult to afford. The one who owns were seen as quite reputed and dignified people of the society. For a common middle class consumer, it was a milestone for life and had to utilize the huge amount of savings to buy their dream car. With the growing economy and emerging lenders who provide car loans, for the majority of middle class, has made a car a basic necessity and not a luxury.

We cannot think of living a life today without car because this restricts us from doing many daily life chores, enjoying a good social and professional life and enjoy traveling. Without car we also find it difficult to go for work, duties at odd hours. But with newly emerging technologies and lesser supply resources, the cost of cars are rising with a pace, often making it difficult for an average consumers to buy a car right away only using ones savings. Therefore, after reviewing and understanding the huge demand for financing both new and used cars, leading lenders have come up to lend loans in India that offer car and two-wheeler loans, which are floated products, that enables you to buy your own car and pay off the car loan amount borrowed in small parts through car loan installments or EMIs.

Benefits of Car Loans

In an economically growing country like India, apart from paying such a huge sum of cash will disturb one’s budget, the other issue is that a massive purchase with liquid cash can put you on the Income Tax department’s radar as well. When you avail a car loan to pay for your car, you can easily manage to retain your savings for other current and near future expenses. One of the greatest car loan benefits in our country is that the loan is a secured loan, though against the car itself, so, you do not have to put your property or other assets as a security with the lender to avail a car loan. You can also use your car while you are repaying the car loan term, so after few years down the line you have added a big amount to your original savings and still have the opportunity to own the car after paying off the car loan completely. This gives an extra chance to supplement the crucial credit history by acquiring a car loan and strictly sticking to the repayment cycle for the complete term. A good credit history that consists of your on time payments and cleared debts help you to avail further loans in the coming future. Car loans, therefore, are a very safe and specific way of purchasing and owning your own car.

 Car Loan Characteristics

The following features are generally carried by the Car loans in India:

  • Opting for a new or used car loan depends on the need and the kind of car requirement by the consumer. However, most people prefer to borrow a car loan for buying new cars and not the second hand ones.
  • Option of Car loan in India, for a major portion of the population, is an alternative that allows them to purchase a car which is better than the one available in their budget and also the approval for the car loan is quick n less hazardous.
  • Car loans in India are generally provided on a fixed rate of interest while repayment is done through EMIs. This keeps you assured of repaying a fixed amount on a regular monthly basis towards the car loan, by clearing the way for better budget planning without disturbing your regular expenses.
  • A bank that offers a car loan also provide flexible repayment tenure options of 1-7 years that makes it easy to repay the car loan amount in regular intervals.
  • In India, Car loans are easier to avail as compared to any other kind of a loan and involve much easier documentation with a crisp and clear instructions and guidance throughout the complete car loan application, approval and sanctioning process.
  • Car loan borrowers can avail loans up to Rs. 1.5 cores, which is almost the 90% – 100% of the vehicle’s on-road price and also it depends from organization to organization.

Most banks provide loans with reasonable EMIs to be returned with flexible tenure options offered on Car loans.


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