Apply for car loan for Jeep Compass at low interest rate upto 100% of Ex-showroom price with minimal Paperwork and Quick disbursal
Almost anybody who fulfills the basic car loan eligibility criteria can apply for a car loan in India. The basic requirements to take up any loan are driven by the age, employment status and other demographical factors of the car loan subscriber along with of course, their repayment capacity. The common requirements, irrespective of the financial institution or loan amount, for an individual to be eligible for a car loan approval include:
Several documents that establish necessary information like your identity, proof of income and residence are required for a car loan application. But out of all, the documents relating to new or old car, are the most important. The complete set of relevant car loan documents makes one eligible for loan and one cannot do without submitting the right docs.Though, the documentation requirements vary from lender to lender, following is a list of commonly asked for documents required while applying for a car loan :
Though like most debt instruments, car loan interest rates are linked to the base rate dictated by RBI directives, the rate does differ slightly from bank to bank. Additional factors that may affect the interest rate on car loans include the loan amount, loan tenure, your credit history and your reputation with the bank. Currently car loans are available on interest rates ranging from 10% - 15% but there are a few banks that offer it for as low as 9.55%.
Nowadays, there are many financial entities that offer loan up to 90 percent of the car value, though the final loan amount may differ with each entity. The loan amount that you get depends upon a number of factors, like the price of vehicle, body type, brand and model, resale value, etc. Few agencies even offer a car loan on 100 percent of the car cost.
At the time of applying for car loan, you are required to submit your identity, income and residential proofs. Once these documents are verified, it takes around 3-7 days in processing and sanctioning the loan.
Generally, car loan tenures range from 1-5 years and some banks offer tenure of up to 7 years. Short tenure means you will have to pay higher EMI and long tenure means lesser EMI value.
CIBIL or the Credit Information Bureau (India) Limited is a Credit Information Company that collects information of an individual’s loan and credit card payment details, and provides a credit score based on the same. The financial and credit institutions use this score to evaluate loan applications. Credit or CIBIL scores lie in the range of 300 to 900, with 750 being an average score that is most commonly accepted by banks for accepting loan applications. There is no such perfect score declared by banks or any such credit institution. However, an applicant with a score above 600 may not find too many hurdles while applying for car loan. A score of 750 is commonly readily accepted by the banks and they are quite willing to offer credit services to such applicants. This is because a score of 750 or above means that you have been a regular payer with your previous loans and will be able to repay your loan amount without being a defaulter.
If you have a bad credit score in your bank account, then there is a high possibility of your loan application getting rejected. This can also happen if you have been a defaulter in any way in your past loans. If you are applying for loan for the first time, then the bank will consider your assets, income, company, etc.
You can either request the bank to auto-debit the monthly EMI amount from your bank account through ECS (Electronic Clearing System) or opt to pay the EMIs through post-dated cheques. In case of car loans, you can pre-pay the entire loan amount after 6 months to 1 year. You cannot make part payments in car loans. However, since these rules vary with the banks, it is important that check with your bank beforehand.
It is important that you pay all your EMIs on time. Some banks allow you to pay the EMI after due date, along with a late payment fee. However, this can happen only once or twice. Beyond that, you may be considered as a defaulter. In that case, the bank may even take over your vehicle. Also, this highly affects your credit score and reduces your chances of getting any kind of loan approved in future.
To facilitate prepayment of your Car Loan / Two wheeler Loan , you are required to visit an ICICI Bank Asset Servicing (Retail asset operation group ) branch along with the below mentioned documents to complete the prepayment process:
You may update your mailing address, mobile number or e-mail ID through any of the following modes:
In the case of monthly reducing balance method, the principal gets reduced at the end of every month and the interest is calculated on the outstanding principal at the end of the month.
The lending rates vary on the basis of car models and tenure selected.