1. Car loan defined
A car loan is one of the most convenient ways to purchase a car. Chennai car loan can help you purchase the car that you couldn’t afford with your own budget. Buying an older car is also a good option but you need to be very sure before taking this step as it is very rare when a used car comes with a guarantee. Therefore, it is always safe to go for a new car with a Chennai car loan. There several banks in India that provides car loans.
2. The advantages of car loans
People apply for a car loan even when they are in good financial shape. As the repayment structure of loans is of monthly EMIs which help you to maintain your saving balance and enjoy the benefit of your new asset.
In order to apply, you just need to submit documentation for a car loan.
Since car loan in Chennai comes under secured loans, therefore, your new car is considered as collateral to the bank. Hence, if you fail to make any repayments, the bank has the rights to seize your car.
3. Some information that you need to know about car loans
Your credit history plays an important role while availing a loan because it affects the Interest Rate for car loans in Chennai. Since you are the borrower should have a good credit score so that you are considered as a more reliable customer to the bank.
You should do a detailed research before applying for the car loan in Chennai. Various banks offer loans at varied interest rates, you must see which one suits you the best.
4. Chennai car loans and possible Interest Rates
Interest Rates for a car loan in Chennai is different for each bank. Some of the banks with good Interest Rates for car loan in Chennai are:
- ICICI Bank: Starts from 9.50%
- State Bank of Bikaner and Jaipur: Interest Rate is 9.95%
- State Bank of Patiala: Interest rates begin with 9.95%
- Union Bank of India: Floating Interest Rates of 9.90%
5. Banks in Chennai with good car loan schemes
Banks that offer car loan schemes are:
1. Federal Bank:
- Interest rates are varied between 10.90% and 12.25%
- No guarantor is needed
- Charges can go up to Rs 2,500
2. Allahabad Bank:
- Floating Interest rates start from 9.80%
- Tenure for repayment goes up to 7 years
- Processing fee is 0.50% of the loan amount
- You don’t need a guarantor
3. Bank of Maharashtra:
- Interest rate is 10.10%
- There are no processing fees and service taxes
- There are no pre-closure charges
Paisabazaar.com can help you compare car loans in Chennai within a matter of seconds. Just log on to Paisabazaar car loan and enter your details. You will then be able to view car loan offers matching your profile. Select one of the offers by clicking “Apply” and sit back and relax.