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Car loans

Introduction

It is true — owning your dream car is a cherished dream. Here are some quick, easy loans that are tailor-made to take you to your dream drive. MoneyRaksha guides you through the choices and helps you take all the right steps… so you get the car that you want, through the best deal!

Loan eligibility

Your eligibility depends on your income, and the make and model of your car. Typically, banks loan you 80 per cent of the ex-showroom price of your car; it's a little flexible if you are the bank's customer. The monthly payment — EMI — will be around 50 per cent of your monthly income. That is a large slice, and it would mean that you manage your other expenses such as rent, food, utility bills, etc, with the other 50 per cent of your income. Therefore, while planning your EMIs, allocate enough for your home, so that you are not financially strained by your EMI payments.

Fees and charges

We help you navigate the fine print such as additional fees and charges, which vary from one institution to another. For example, the bank's processing fee is approximately one per cent of the loan amount, and it is generally capped. Also, if the loan is cleared earlier than planned, there is a foreclosure penalty of four per cent of the foreclosed amount.

Loan repayment

The repayment period varies between 1-5 years, depending on your loan policy and your loan amount. Do remember that the earlier you pay off the loan, the lesser is the interest you pay. It is, therefore, advisable to keep the duration of your loan repayment to a minimum time.

Loan documentation

We understand that getting together the right documents can be stressful. At MoneyRaksha, we help you cruise through this stage. Typically, you might require one or more of the following documents:

  • Proof of bank account
  • Identity proof
  • Income proof of 1-2 years
  • Residence proof

However, if you hold a fixed deposit account with the bank that you seek a loan from, your loan processing becomes much easier.

Compare loans

The extremely competitive car loan market has several players vying for your attention. It's ideal to compare various offers and choose a loan that best meets your needs.

  • First, check the interest value; make a note of terms and rates under various heads such as monthly reducing rate, flat rate, etc.
  • Then, take a look at the processing fee.
  • The total cost of your car loan is the loan amount + total interest charged throughout the loan tenure + processing fees and other taxes.
  • To figure out the cheapest loan, compare the total amount that you need to pay to completely pay off your car loan.
  • You also have to ask how long the bank takes to process the loan, especially if you want to drive the car home in a hurry!

The MoneyRaksha touch

At MoneyRaksha, we have all the information and expertise to help you negotiate a good deal. At every step of the process, we guide you to ensure a trouble-free transaction. You gain from:

  • The lowest interest rates.
  • Customised car loan quotes, in a jiffy!
  • Quick comparisons based on total loan cost, customer reviews, etc.
  • Comprehensive and objective information, with no fine print.
  • Complete privacy of your personal information.
  • No extra charges from MoneyRaksha.

My MoneyExpert

  • Type in your specifications in the eligibility calculator to receive your customised car loan quotes.
  • Compare the offers you receive and choose one that best suits your needs.
  • Your application is sent electronically to the bank you chose.
  • The bank contacts you directly, within one working day.
  • We, at MoneyRaskha, continuously update you on the status of your loan application with email and SMS alerts.

Car loan FAQs