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Car Loan in Mumbai
Located on India’s west coast, Mumbai is the largest city and financial power house of the country. Ranked among the fastest growing cities in the world for business start-ups, the city reverberates with full of energy and contributes to the economy of the nation in the fields of IT, finance, textiles, gems and jeweler, leather processing, entertainment and healthcare.
Mumbai is home to some of the leading banks and other NBFCs in India. Are you looking for a gold loan in Mumbai and wondering what your options are? You have reached the right place. Read on!
What is a car loan?
As the name indicates, it is the fund provided by the banks and NBFCs to buy a car. Car 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.
Features: car loan in Mumbai
1. Tenure – 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 – Most of the banks and private lenders provide loans for used cars. The loan amount will depend on the car type, resale value 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. Security – 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.
Eligibility: car loan in Mumbai
To get a car loan in Mumbai and to drive home your dream car you need to meet the eligibility criteria of the banks and also have the necessary documentation
Age criteria: Age of the applicant should be between 21 and 75 years, the applicant should be an Indian national. In terms of salary should have a minimum of 10,000 INR and the employment type of the applicant can be salaried or self-employed.
To get the best car loan offer in Mumbai, most banks also look into the credit score of the applicant, as per general guidelines any score on any credit bureau above 750 is considered a very good and creditworthy by the banks.
Tenure: Car loans usually are shot terms loans starting from as a short as even one year and extending up to five years.
Do check for the exact eligibility criteria from the lenders directly however you can check your credit health and get an idea about eligibility on CreditMantri by creating a credit profile.
Documentation: car loan in Mumbai
Important documents to be submitted while applying for car loans in Mumbai
- Completed loan application
- 3 Passport size photographs
- Statement of Bank Account/ Pass Book for last six months
- Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
- 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 Mumbai
| Loan processing charges | 1% to 3% of loan amount |
|---|---|
| Documentation charges | 0.5% to 3% of loan amount |
| Pre-payment charges | Will vary from bank to bank for example Fixed Prepayment charges Prepayment at any given time – 1% to 3% (or) Varying prepayment Charges based on 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 Mumbai?
One can apply for a car loan in Mumbai through the following ways
1. Dealer and manufacturers
2. Public and private banks
3. Customer care of the lenders
4. Online website portals
Benefits of car loans in Mumbai
Mumbai 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 the 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 Mumbai?
There are many leading banks and NBFCs which offer car loans in Mumbai 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 Mumbai FAQs
1. 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.
2. Where can I get the cheapest car loan interest rates in Mumbai?
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.
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. What are the banks that provide car loans in Mumbai?
The banks that provide car loans are
| AXIS Bank Car Loan | Andhra Bank Car Loan |
| HDFC Bank Car Loan | Bank of India Car Loan |
| HSBC Bank Car Loan | Bank of Maharashtra Car Loan |
| ICICI Bank Car Loan | Catholic Syrian Bank Car Loan |
| IDBI Bank Car Loan | Central Bank of India Car Loan |
| Indian Overseas Bank Car Loan | YES Bank Car Loan |
| IndusInd Bank Ltd Car Loan | City Union Bank Car Loan |
| Kotak Mahindra Bank Car Loan | Corporation Bank Car Loan |
| Oriental Bank of Commerce Car Loan | DBS Bank Car Loan |
| State Bank of India Car Loan | Dhanlaxmi Bank Car Loan |
| UCO Bank Car Loan | Federal Bank Car Loan |
| Bank of Baroda Car Loan | Indian Bank Car Loan |
| Canara Bank Car Loan | Jammu and Kashmir Bank Car Loan |
| Punjab National Bank Car Loan | Karnataka Bank Car Loan |
| Union Bank of India Car Loan | Karur Vysya Bank Car Loan |
| Vijaya Bank Car Loan | Lakshmi Vilas Bank Car Loan |
| Syndicate Bank Car Loan | Nainital Bank Car Loan |
| Deutsche Bank Car Loan | Punjab and Sind Bank Car Loan |
| Allahabad Bank Car Loan | Ratnakar Bank Car Loan |
| DENA Bank Car Loan | South Indian Bank Car Loan |
| GE MONEY Car Loan | Tamilnad Mercantile Bank Car Loan |
| Magma Fincorp Car Loan | United Bank Car Loan |