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Car Loan in Chennai
Rated as the safest city in India, Chennai is the capital of the state Tamil Nadu. Chennai has a broad industrial base in the automobile, computer, technology, hardware manufacturing and healthcare sectors.
The city has a long history with banking right from the colonial times and today numerous prominent commercial and banking establishments have the city as their first home, the city also serves as a centre of operations for several global banks and financial corporations. With the growing demand for automobiles in Chennai, you can get a car loan easily from popular lenders.
Chennai is home to some of the leading banks and other NBFCs in India. Are you looking for a car loan in Chennai and wondering what your options are? You have reached the right place.
What is a car loan?
As the name indicates, it is the finance provided by the banks and NBFCs to buy a car. These loans are generally structured as installment loans which the borrowers will repay in Equated Monthly Installments (EMI). These car loans can be got from any bank and NBFCs who are willing to provide the service based on their eligibility criteria.
Before applying for a car loan, it is important to compare the interest rates, processing fees and loan amount.
Features: car loan in Chennai
1. Makes it easy to buy a car – Buying a car is not easy nor is it possible for everyone. A car loan is a good way for people to buy a car and pay back the money at a tenure they are comfortable with while enjoying the vehicle.
2. Loans for pre-owned 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. Flexi loans – Most banks provide loans at flexible tenures which the borrower can choose making it easier for the them to repay the loan.
4. 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.
How to choose a car loan in Chennai
You can follow the steps given below while choosing a car loan in Chennai
- Analyze your current financial status
- Check your credit score
- Choose the car of your choice
- Decide on the margin and loan amount
- Choose a tenure that is comfortable for repayment
Eligibility: car loan in Chennai
| Age | Minimum 21 years |
|---|---|
| Maximum 75 years | |
| Employment Type | Salaried or Self-employed |
| Employment status | Employed/In-business for at least 3 yrs. and at least 2 years with current employer/business |
| Maximum loan amount | On an average financial institution pay up to 90% of the loan |
| Minimum Income | Rs. 10,000 per month |
| Tenure | Minimum – 12 months |
| Maximum – 60 months | |
| Credit Score | Preferred 750 |
| Nationality | Indian |
Fees and Charges: car loan in Chennai
Following are the fees and charges levied on car loans provided by various lenders in Chennai.
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 : will vary with bank
EMI Late payment penalty : 1% to 3% Per Month on the Unpaid Installment
Stamp duty : as levied by the state government
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 : viz. The cost to issue another NOC by the lender: Rs 500
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
Documentation: car loan in Chennai
Important documents to be submitted while applying for car loans in Chennai
- 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
Benefits of Car Loans in Chennai
Chennai is home to both leading banks and automobile manufacturers. Having these two combinations, it works in the customer's favour to get a car at cheapest price from both the parties. With online facilities, the borrower can easily apply online for a car loan and select a comfortable repayment option based on the credit profile.
Which Is the Best Bank for car loan in Chennai?
There are many leading banks and NBFCs which offer car loans in Chennai 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 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.
Car Loans in Chennai FAQs
1. Where can I get the cheapest car loan interest rates in Chennai?
The interest rate depends on your salary, the loan amount you require, credit score and the tenure you opt for. You can negotiate for good terms with a good credit score.
2. Where can I find a car loan interest calculator?
You can visit CreditMantri website or the lending bank website where you will find the option of EMI calculator. Input various interest rates to get the respective EMIs. The interest rate can be obtained by applying for the loan where you will submit basic information like salary, company and job experience details based on which interest rates will be displayed.
3. How to get instant e-approval on car loans?
You need to visit the website of lenders be it banks or NBFCs and apply on their website. After inputting the details asked the bank will immediately give you an update if your loan application is approved or not.
4. How to apply through CreditMantri to get a car loan?
You can check your eligibility and apply for a car loan by signing up with CreditMantri. By creating their free credit profile on CreditMantri, the user would be matched to car loan lenders in Chennai based on their credit profile. This eases the process of application as the user can at one place get to see the list of lenders to which they can apply and have a higher chance of car loan approval.