When it comes to financing a vehicle, Shriram Finance has established itself as a trusted name in the lending industry. The company offers a range of vehicle loan options designed to cater to the needs of individual borrowers and businesses alike. In this comprehensive guide, we’ll dive into the details of Shriram Finance’s vehicle loan offerings, including the types of loans available, eligibility criteria, loan amounts, interest rates, repayment terms, and the application process.

Types of Vehicle Loans Offered by Shriram Finance

Shriram Finance provides various vehicle loan products to help you finance your dream vehicle. These include:

1. New Vehicle Loan

  • Purpose: This loan is designed to help you purchase a new car, motorcycle, or commercial vehicle.
  • Loan Amount: Shriram Finance offers up to 85% of the ex-showroom price of the vehicle.
  • Tenure: You can opt for a repayment tenure of 1 to 5 years, depending on your financial situation.
  • Eligibility: The borrower must be at least 21 years old at the time of loan application and not older than 65 years at loan maturity.

2. Used Vehicle Loan

  • Purpose: Ideal for those looking to buy a pre-owned car or two-wheeler.
  • Loan Amount: You can avail up to 85% of the on-road price of the used vehicle.
  • Tenure: The loan repayment tenure can range from 12 months to 5 years, depending on the vehicle's age and condition.
  • Eligibility: Similar to the new vehicle loan, you must be between 21 and 65 years of age. The used vehicle must not be older than 8 years at the time of loan application.

3. Commercial Vehicle Loan

  • Purpose: If you need to buy a commercial vehicle like a truck, bus, or van, Shriram Finance provides loans for this as well.
  • Loan Amount: The loan amount can be up to 90% of the vehicle's on-road price.
  • Tenure: Commercial vehicle loans typically come with a repayment tenure of 3 to 7 years.
  • Eligibility: The borrower must be a business entity or a self-employed individual engaged in commercial activities, with at least 2 years of business experience.

4. Two-Wheeler Loan

  • Purpose: This loan is designed for purchasing a new or used motorcycle, scooter, or other two-wheeler vehicles.
  • Loan Amount: You can avail up to 85% of the on-road price of the two-wheeler.
  • Tenure: Repayment tenure for two-wheeler loans ranges from 1 year to 3 years.
  • Eligibility: The borrower must be at least 21 years old and not older than 65 years at loan maturity.

Eligibility Criteria for Shriram Finance Vehicle Loan

To apply for a vehicle loan with Shriram Finance, you need to meet the following eligibility criteria:

  • Age: You must be at least 21 years of age at the time of loan application and no older than 65 years at the time of loan maturity.
  • Income: You should have a stable income source. For salaried individuals, a minimum monthly salary may be required, while self-employed individuals need to provide proof of business income.
  • Credit Score: A good credit score can increase your chances of loan approval and better interest rates. A score of 700 and above is typically considered ideal.
  • Vehicle Ownership: For used vehicle loans, the vehicle should not be more than 8 years old at the time of loan application.

Shriram Finance Vehicle Loan Interest Rates

Shriram Finance offers competitive interest rates on vehicle loans, but the exact rate varies based on factors such as the type of vehicle, loan amount, and the borrower's credit profile.

  • New Vehicle Loan: Interest rates typically range from 9% to 12% per annum.
  • Used Vehicle Loan: Interest rates for used vehicle loans may range from 12% to 16% per annum, depending on the age of the vehicle and other factors.
  • Commercial Vehicle Loan: Interest rates for commercial vehicle loans usually range from 10% to 15% per annum.
  • Two-Wheeler Loan: The interest rate for two-wheeler loans can range from 12% to 18% per annum.

Loan Amount and Repayment Terms

Shriram Finance provides flexible loan amounts and repayment terms to suit the borrower's needs:

  • Loan Amount: The loan amount typically ranges from ₹50,000 to ₹50,00,000, depending on the type of vehicle.
  • Repayment Tenure: You can choose a loan repayment tenure between 1 year and 7 years, based on the loan amount, vehicle type, and your repayment capacity.

Documents Required for Shriram Finance Vehicle Loan

To apply for a vehicle loan, you will need to submit the following documents:

  • Identity Proof: Aadhaar card, voter ID, passport, or driving license.
  • Address Proof: Utility bills, rental agreement, or bank statement.
  • Income Proof: Salary slips, IT returns, bank statements, or business income documents.
  • Vehicle Details: Invoice from the vehicle dealership, RC book (for used vehicles), and insurance details.
  • Photographs: Passport-sized photographs as per the lender's requirement.

Application Process for Shriram Finance Vehicle Loan

The process to apply for a vehicle loan with Shriram Finance is straightforward and can be completed both online and offline:

1. Online Application:

  • Visit the official website of Shriram Finance and fill out the loan application form.
  • Submit the required documents, including identity, income, and vehicle-related proofs.
  • After submission, you will be contacted by a Shriram Finance representative who will guide you through the next steps.

2. Offline Application:

  • You can visit the nearest Shriram Finance branch and fill out the loan application form.
  • Submit the necessary documents to the branch officer.
  • The loan will be processed, and you will be informed of the approval status and loan amount.

3. Approval and Disbursement:

  • Once your application is approved, the loan amount will be disbursed to your bank account.
  • You can then use the loan to make the vehicle purchase.

Key Benefits of Shriram Finance Vehicle Loans

  • Quick Processing: The loan approval and disbursement process is fast, ensuring that you can purchase your vehicle without unnecessary delays.
  • Flexible Repayment: With flexible repayment tenures, you can choose a plan that aligns with your financial situation.
  • Minimal Documentation: The documentation process is simple, and the requirements are minimal.
  • Competitive Interest Rates: Shriram Finance offers competitive interest rates, especially for those with a good credit history.
  • Prepayment Option: You can repay the loan in part or full before the end of the tenure with minimal prepayment charges.

How can I check my Shriram loan details?

To check your Shriram loan details, you have several convenient options. First, you can log in to your Shriram loan account on their official website or through the Shriram Finance mobile app, available on both Android and iOS. These platforms allow you to view your loan details, including outstanding balance, EMI schedule, and payment history. Additionally, if you prefer speaking to a customer service representative, you can call the toll-free numbers 1800 103 4959 or 1800 103 6369 for assistance. If needed, you can also visit the nearest Shriram Finance branch, where the staff will help you access your loan information. Make sure to have your loan account number handy for quicker service.

Conclusion

Shriram Finance is a reliable option for anyone looking to finance a new or used vehicle, whether for personal use or commercial purposes. With flexible loan amounts, competitive interest rates, and a streamlined application process, Shriram Finance makes it easier for you to own your dream vehicle. If you meet the eligibility criteria and have the required documents, applying for a vehicle loan with Shriram Finance could be the right step toward achieving your goals.

 

Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.