Car Loans in India

Owning a car is no longer a distant dream for the common man. With almost all banks in the country matching each other in offering car loans/automobile loans at very competitive rates and repayment terms, any average income earner now could easily buy a car without squeezing oneself. In fact, car loans are available for both new as well as used cars.

Even though banks offer different car loan schemes, the most suited ones for a customer are the advance EMI's scheme, deposit security scheme, and money scheme. To know more about the intricacies of the different schemes, the reader is requested to visit the bank website. The loan size depends on the model you are buying, its market price, resale value, and also the particular car loan scheme you have chosen. If there are any offers associated with the loan, you may get more concessions. As it is usually observed, with most banks, if it is a new car, you could get as much as 90% of the car's cost as loan. For used cars, however, not only the loan amount carries a cap, but also the interest rates will be higher and the repayment periods much lesser.

Car loans are available for 1 to 5 years usually. For used car loans, it is 2 years.