1. Basic information about car loans
Car loans are a type of secured loans i.e. the bank uses your car as collateral when you buy a new or used car using a car loan. That is, the bank will lend you money to purchase a car while keeping the vehicle hypothecated with itself. Once you repay the car loan in full, the car will be free from any encumbrances such as bank hypothecation. But before taking a car loan, you need to figure out how much loan amount you will be willing to repay and the EMI amount that you can afford to pay every month. Additionally, you also need to decide on the tenure of the car loan viz. 1 year, 3 years or even 7 years as that would affect the interest rate applicable to your loan.
Car loans are available for both new cars and used cars (also known as second-hand cars).It might be a better idea to buy a car with a car loan, even if you have money to buy the car with one-time payment as a car loan allows you to pay for your car via monthly repayments while ensuring that you do not dip into your savings. A Chandigarh car loan makes it very easy for you to buy a brand new car or even a pre-owned car if you so desire. A Chandigarh car loan is a secured car loan just like any other car loan where you keep your car as collateral bank. This procedure of using your car as collateral for the loan is termed as hypothecation.
2. Things to consider when applying for a Chandigarh car loan
The number of payments required to pay off a Chandigarh car loan depends on the loan tenure chosen by you. If you choose long car loan tenure, the individual EMI payments would be lower than if you choose a short tenure. Having a good credit history i.e. a good track record of credit card/ loan repayments is also essential as this improves your chances of getting your car loan sanctioned at a lower interest rate.
Since car loan is a secured loan, therefore to avoid having your car repossessed by your car loan provider, you should ensure that you pay all your EMIs in a timely manner. Missing your scheduled payments not only adversely affects your payment history, but may also lead to your car being repossessed by your lender. Before applying for a car loan in Chandigarh, you should accurately gauge your spending capacity as well as curb your desire to make impulse purchases that may lead to you defaulting on your car loan. Apply for a Chandigarh car loan only when you are very sure about your finances so as to improve your chances of adding a new asset without any hassles.
3. Interest Rates for Chandigarh Bank Car Loan
You can get car loan with Interest Rates in Chandigarh that start from 9.35%.Some of key banks that provide car loans in Chandigarh are:
- HDFC Bank: Interest Rate starts from 9.50%
- Andhra Bank: Interest Rate is 10.25%
- Federal Bank: Interest Rate goes from 10.90% to 12.25%
- Dena Bank: Interest Rate for a floating car loan starts from 10.10%
4. Chandigarh Banks that can offer car loans
In Chandigarh, there are numerous banks that provide car loan, so much so, that you are spoilt for choice. The following are some key Chandigarh banks offer car loan schemes to individuals:
- Axis Bank:
- The Interest Rate can range between 9.65% and 15%
- No guarantor required
- Pre-closure fee is applicable
- ICICI Bank:
- Maximum loan tenure of seven years
- Interest Rate of this Chandigarh car loan scheme starts from 9.50%
- Processing charges can be up to Rs 6, 153
- You don’t need a guarantor in order to apply for an ICICI Bank car loan
- Bank of India:
- Floating Interest Rate on car loans starts at 9.50%
- Processing fees are Rs 500 + applicable ST
- Maximum tenure is seven years
5. Apply Online for a Chandigarh Car Loan
To apply for car loan scheme in Chandigarh, you simply need to visit the Paisabazaar.com website and input some key information with the required details. Based on your details and the requirements that you mention on the website, you can see various car loan options including the interest rates, tenure, processing fees etc. for car loans in Chandigarh. You just need to find the suitable loan from the list of car loan offers that might work for you and submit your application at the click of a button.