Auto Loans in India are available both for the new cars and old cars.

Auto Loans

With a plethora of auto loan opportunities available in India these days, it is now possible for you to buy your dream car within a matter of days. No need to save up money for making complete down payment at the time of buying. Just gather enough amount for the initial payment and pay the rest in easy installments, by taking up a loan. The best part about auto financing is that, apart from the new cars, loans are available for old cars as well.

After you have decided to take an auto loan, check out the various finance schemes available in the market. After undertaking a thorough research of each and every scheme, you will need to pick the one that suits you the most, in terms of interest rate, monthly installments, duration, and so on. The size of the loan will depend upon the cost of the vehicle and its type (standard or premium), along with the percentage financing you want or are being offered.

In case of a new car, up to 90% of cost of the car is finance, while the percentage gets reduced to 80% in case of old car. However, the financiers might have different terms for different models. For example, Maruti 800 has a high resale value. In case the buyer defaults and the finance company has to sell the car, to get back their loan amount, it would be able to get a higher value. Therefore, the finance company may give higher percentage of finance in such a case.

There is no necessity for any collateral to get a car loan. Usually, the bank or finance company hypothecates the car in its name. The endorsement for hypothecation is made in the Registration Certificate (RC) book of the vehicle, which gets cancelled after the loan is repaid. Usually the tenure of auto loan varies from 1 to 5 years. However, there are some banks with schemes that offer loans for 7 years as well.

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