Car Loans in Mumbai

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

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