1. What is a car loan?
A car loan can be used to buy your favorite car. There are several banks in Rajkot that offers car loans at an interest rate that is variable from other banks. Every bank in Rajkot offers a car loan. Car loans are secured loans, where the bank does the payments of your car and you just repay the bank in monthly installment at an interest rate pre decided by the bank. Usually, the interest rates of the installments are around 9.35% or above. It is therefore advised to choose a car loan after doing a detailed analysis about your budget. This will ensure you do not fail to repay any of your installments.
Once you analyze your budget, you can apply for a car loan in Rajkot by visiting our Paisabazaar.com website in less than a minute.
2. Reasons to get this loan
A car loan helps you avoid the financial burden of managing your finances to buy a car. Purchasing a car is a long term investment and should be done after a detailed analysis of your budget. With the help of a car loan, you don’t have to pay the whole amount of the car as the bank pays on your behalf to your car dealer. You just have to repay the bank with the applicable interest rates. Since a car loan is a secured loan, therefore, the bank has the rights to repossess your car in case of failure of repayments. So do ensure timely repayments for your car.
3. Further car loan details
Your credit history plays a very important role in your interest rate for a car loan in Rajkot. If you have a good credit history then your interest rates will be lower and you will be a more trustworthy borrower in the books of banks. Likewise, loan tenure has an important role to play in your EMIs and your interest rates over it. If your loan tenure is longer then you shall pay your EMIs at a lower interest rate. A car loan is the best financial solution if you are planning for a new car in Rajkot.
4. Car loans in Rajkot and Interest Rates
Interest Rates for a car loan in Rajkot are different for each bank, here are some of the examples:
- Dena Bank: Interest rate is 9.60%
- Allahabad Bank: 9.80%
- Bank of Maharashtra: Interest Rate is 10.10% onwards
- Central Bank of India: Interest rate starts from 9.60%
Let’s understand the interest rates and charges of some good banks in Rajkot:
1. IDBI Bank:
- Interest rate is 9.95%
- No guarantor required
- No pre closure charges
2. Union Bank of India:
- Interest rate is 9.95%
- Maximum loan eligibility is 1.25 Crs
- No processing fees
- Guarantor required
3. Oriental Bank of Commerce:
- Interest rate is 9.70%
- No processing fee
- Maximum loan tenure is 7 years
There are many Rajkot banks that are offering a car loan scheme. Do a detailed market research of which car you wish to purchase followed by a budget analysis. Based on your analysis choose a car loan in Rajkot that meets your requirement.