Car Loans in Bhopal

Car Loan in Bhopal

Capital city of the state of Madhya Pradesh in India, Bhopal is home to various institutions and installations of national importance, including ISRO's Master Control Facility, BHEL IISER, MANIT, SPA, and AIIMS. Industries that have thrived in this city of Central India include, electrical goods, sporting equipment and handicrafts.

With the growing population in Bhopal, the demand for automobiles is on the rise. If you are looking for car loans in Bhopal, the following information will help you choose the best lenders in town.

What is a car loan?

A car loan is the finance provided by the banks and NBFCs to purchase a car of the customer’s choice. The car loans are generally structured as installment loans which the borrowers will repay in Equated Monthly Installments (EMI). Most of the banks and NBFCs provide finance for up to 90% of the value of the car purchased. The rest has to be borne by the borrower.

Interest rates, tenure and loan amount are few things a borrower must compare and analyze with various lenders to get the best deal on the car loans.

Eligibility: car loan in Bhopal

Features: car loan in Bhopal

Let us look at some of the common features of the car loans which are given in Bhopal,

1. No collateral – Car loans are a form of secured loan as the car purchased acts as the collateral. No additional collateral or guarantor is required in most cases.

2. Loans for used cars – Many banks provide loans for used cars. The loan amount will depend on the car type, make and model but it still eases out the financial situation of a borrower.

3. Tenure – Buying a car could be a difficult thing for few people. A car loan is a good way for people to buy a car and pay off the loan at a tenure they are comfortable with while enjoying the vehicle.

4. Flexi loans – Most banks provide loans at flexible tenures which the borrower can choose making it easier for the them to repay the loan.

Documentation: car loan in Bhopal

Important documents to be submitted while applying for car loans in Bhopal

• Completed loan application
• 3 Passport size photographs
• Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
• Statement of Bank Account/ Pass Book for last six months
• Proof of identify (photo copies of Voters ID card/ Passport/ Driving license/ IT PAN card)
• IT returns for the three years for self-employed professionals
• Form 16/IT returns for the last two financial years for salaried employees

Fees and Charges: car loan in Bhopal

Loan processing charges : vary 1% to 3% of the loan amount

Documentation charges : 0.5% to 3% of loan amount

Pre-payment charges : 1%-3% at any given point in the loan cycle

There could also be pre-payment charges based on the repayment cycle

No Due Certificate / No Objection Certificate (NOC) : Will vary from bank to bank mostly NIL

EMI Late payment penalty : 1% to 3% Per Month on the Unpaid Installment

Stamp duty : At actuals as levied by respective State Govt.

Cheque bounce / EMI return charges : Rs.100 to Rs 500/-

Loan cancellation charges: : Varies from bank to bank

Legal, repossession & incidental charges : At actuals

Duplicate NOC : Rs. 500/- onwards

PDD collection charges : Up to Rs.450/-

Cheque/ECS swapping charges : Rs 250/- onwards

Amortization schedule charges : Rs 200/- onwards

Special NOC charges : Rs 250/- onwards

Loan rebooking/reschedule charges : Rs 500/- onwards

How to apply for car loan in Bhopal?

There many ways one can apply for a car loan in Bhopal

1. Bank/NBFC website

You can go online and visit any of the banks or NBFC that provide car loan and apply for it. You will need to fill up the necessary details asked on the website. A bank/NBFC representative will come to your home to collect the necessary documents. The loan amount will be disbursed after document verification. This the best way to get an instant eligibility check.

2. The Dealer

Most showroom owners or car dealers have tie ups with lots of NBFCs and Banks whose representatives you can meet at the showroom where you are planning to purchase the vehicle. The dealers can also guide you through the process and the documents required to get the loan.

3. Customer care

A potential borrower can also call a bank/NBFC customer care with whom they can get the details and apply for the car loan. A bank/NDFC representative will come and collect the necessary documents from your home. Once the verification process is completed your loan will be disbursed.

4. Bank/NBFC Branch

This a type of offline mode where the borrower can visit any bank or NBFCs branch in Bhopal to meet with a representative who will give all the details of their car loan scheme. You can also ask any queries you might have to get a complete understanding of what you are agreeing to in taking their loan.

How to choose a car loan in Bhopal

When choosing a car loan in Bhopal, a person first needs to understand their current financial situation. Next, he/she needs to check their credit score. A credit score will only be available if the borrower had taken loans before or if they own a credit card. If the credit score is low the person needs to improve it before applying for the loan to make sure they get the best offer.

Then the customer needs to zero in on the car of their choice. After choosing the car, you need to decide how much you are going to pay and how much loan amount you are going to take. Never take a loan beyond your means. Choose a loan and EMI which you can pay comfortably.

Car loan EMI Calculator

To get a better understanding of your loan requirement and how much EMI you will pay, you can use the EMI calculator available on CreditMantri website and on the bank/NBFC website. By inputting the tenure, interest rate and loan amount you will get to know how much EMI you will pay. You can vary the inputs for various scenarios and know the EMI in each case. This will help you plan for the loan you want.

Which Is the Best Bank for car loan in Bhopal?

There are many leading banks and NBFCs which offer car loans in Bhopal like HDFC, ICICI, SBI etc. The best lender is one where you can get the loan amount you want at an interest rate that is comfortable for you and who can disburse the funds as early as possible. It is always better to compare the car loans from different lenders and then look to apply for one that suits all requirements like interest rates

Car Loans in Bhopal FAQs