Car Loans in Chennai

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

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