1. What is a car loan scheme?
A car loan is a secured loan that you can avail to buy a car. The bank pays for your car to the car dealer and you just need to repay the bank by monthly installments at pre-decided Interest Rates. Since a car loan is a secured loan, therefore, the bank considers your car as the mortgage. If you fail to pay your monthly installments, then the bank holds the rights to confiscate your car and put it for auction. Hence, it is important to have a disciplined spending habit and pay your EMIs on time.
2. The reasons to apply
The smartest way to buy a car is by availing a car loan. A car loan in Hyderabad can provide you with money to get the desired vehicle. It can be repaid in monthly rates, but if you buy a vehicle with your own money, you will have to pay the whole amount in one take. A Hyderabad car loan is always a better loan option for vehicle purchase for the following reasons:
- Easy Money: Ready to make the car purchase? You don’t have to worry about managing your finances as bank pays on your behalf.
- Boost Your Credit: Making your repayments on time will give you a good credit score, which will present you as a more reliable borrower.
- Keep Your Savings Intact: You get to keep that money in your savings accounts, keeping you financially healthy while you buy a new car.
- Financially Control: Paying for your car in monthly modes will only help you to manage your finances in a more organized manner without worrying about your financial balance.
3. Things to know when applying for the loan
Before applying for a car loan in Hyderabad, you should ensure that you have a controlled spending habit. By availing a car loan the bank pays for your car, you just have to repay the bank in small amount monthly.
Each bank that offers car loans has different schemes with different features. You should do a thorough research before choosing your car loan. In order to apply, you will just need to submit documentation about the car loan.
4. Hyderabad Interest Rates for this loan scheme
Interest Rates for a car loan in Hyderabad varies from 9.35% to 23.00%. Some examples of Interest Rates in Hyderabad for a car loan are:
- Axis Bank: Interest Rate starts from 9.5%
- Bank of India: Interest Rate is 9.50%
- Bank of Maharashtra: Floating Interest Rate is 10.10%
- Central Bank of India: Interest Rate is 10.10%
Looking for a good car loan in Hyderabad to buy your new car? Below are some of the banks with their rates:
1. HDFC Bank:
- Interest Rate starts from 9.50%
- No guarantor is required for the application
- Pre-closure fee amounts 6%
2. IDBI Bank:
- Interest Rate is 9.95%
- Maximum loan tenure is 7 years
- No processing fees
- Pre-closure charges are up to 1%
3. Oriental Bank of Commerce:
- Interest rate starts from 9.95%
- The maximum tenure is seven years
- No pre-closure
To apply for a car loan in Hyderabad you can simply fill your personal details on our Paisabazaar.com website and provide your loan requirements. The website will show you all the options of a car loan in Hyderabad. Simply choose one and click ‘Apply’ to apply for a loan. The website also facilitates you with free tools- Car loan EMI calculator and Car loan eligibility calculator.