A car purchase, whether the first one or an upgrade from an earlier one, requires a sizeable portion of your savings. But instead of taking out money from a savings account you can go for a car loan, thereby keeping your savings in place for emergencies. Applying for a car loan in Bangalore or any Indian city is just a 2-minute process, if not less. The Interest Rates for car loans in Bangalore are not too high either, starting at 9.35%. However, your EMI, the actual money you will pay month-on-month will depend on your loan tenure. For instance, if you take a 4-year tenure for a Rs 5 lakh loan, your EMI will be Rs 12,525 (@ 9.35%) and total interest amount payable will be close to Rs 1 lakh. However, notice how your interest payout will change if the loan tenure is altered. If we use the same amount and interest rate but tenure as 5 years, your EMI will be Rs 10, 464 and total interest amount close to Rs 1.3 lakhs. Thus, loan tenure plays a crucial role in determining your EMI and total interest payout.
Benefits of a car loan
One of the easiest ways to buy a car is taking out a car loan. It basically halves your worry so that you can focus on the car you want. Some of the benefits of a car loan are:
- Quick money: You are financially ready to make the purchase and won’t have to stress about arranging finances.
- Credit boost: A timely repayment looks good in your credit report, presenting you as a good borrower in case of future loan applications.
- Savings intact: As you don’t need to make the full payment upfront, your savings can remain put, ensuring you are financially strong.
- Financial discipline: a monthly repayment mode will help you organize your finances better, without stressing your financial well-being at any given point.
Bangalore and Car loans
Almost every bank offers car loan in Bangalore. For example, State Bank of India, HDFC Bank, ICICI Bank, and many more. However, do a thorough homework before applying for car loan, as with any other loan. First, know what loan value is manageable for you to repay. Next, compare all the offers available to you. And finally, apply for the loan that best fits your requirement and pocket.
Interest Rates for car loans in Bangalore also depend on the loan tenure chosen. Longer loan tenure means lower EMIs but higher total interest outflow. On the other hand, shorter tenure means higher EMIs but lower total interest amount. In any case, do ensure, you pay your EMIs timely in order to avoid any negative impact on your credit score.
Car Loan Interest rates
The Interest Rates on car loans in Bangalore start from 9.35%. Let’s take a look at the interest rates of banks offering car loans in India are:
- Union Bank of India: Interest Rate is 9.90%
- State Bank of Patiala: Interest rate starts from 9.95% to 10.45%
- State Bank of India: Interest Rate starts from 9.65%
- State Bank of Hyderabad: Interest rate is 9.95%
Below are the details of the interest rates and other charges for car loan schemes in Bangalore:
1. Dena Bank:
- Interest Rate is 9.60%
- You will have to pay Rs 500 for processing charges
- Maximum tenure that you can choose is 5 years
- You don’t have to pay for pre-closure charges
2. Central Bank of India:
- Floating Interest Rate is 10.10%
- Maximum loan tenure is 7 years
- No pre-closure fees are required
3. Indian Bank:
- Interest Rate is 9.95%
- Maximum tenure of the loan is 7 years
- Fees amount 0.229%
How to apply for car loan on Paisabazaar
- Log on to Paisabazaar Car Loan page
- Select the type of car you are looking for (new or used car), city of residence, loan amount and other key details
- Once done, our intuitive platform will populate the loan offers matching your requirements
- Choose the bank you would like to proceed with and click Apply
Documentation for a car loan
You would have to submit following papers for proceeding with your car loan application:
- Income proof
- ID proof, such as passport, ration card, Voter ID card, driving licence
- Age proof
- Address proof, such as bank statement, utility bills
- Passport-sized photographs
- Form 16