Our Application Process
What is Car Loan ?
A vehicle Loan (otherwise called a car loan, or automobile loan) is a measure of cash a client gets to purchase a vehicle of their decision. Moneylenders like banks and Non-Banking Financial Companies offer a vehicle Loan to clients as new or trade-in car loan. From leisure sedans to hatchbacks, vehicle loan are accessible for practically all traveler vehicles and business vehicles in the market. A Car Loan will give you the benefit of buying a vehicle with regularly scheduled installments that you can manage. vehicle Loan likewise helps to increase your credit rating, given that you make the installments on schedule, and allow you to purchase a progressively dependable vehicle that may have been excessively expensive if you somehow managed to pay money.
Types of business loan
There are three varieties of car loans accessible in the market. New Car Loan, Used Car Loan, and a Loan against Car.
- New Car Loan: As the name suggests this type of loan is generally taken to purchase a new car. Banks offer new car loans at an interest rate of 9-14% p.a. for a loan tenure of 1 to 7 years. New car loans are accessible for most makes and models of cars in the market.
- Used Car Loan: This loan is taken to purchase a used car, Banks and NBFCs give used car loans up to 80-85% of the value of the car at an interest rate of 12-18% p.a. for a loan tenure varying from 1 to 5 years. Used car loans can be utilized to buy pre-owned or used cars that are less than 5 years old or don’t exceed more than 10 years at the time of loan maturity.
- Loan against Car: when someone has immediate cash/ finance requirements, he or she can pledge his or her old car as security in order to get sufficient funds to purchase a new car. This is known as Loan against Car. Some banks in India offer loans against cars up to Rs.10 lakh or 100% of the value of the car at an interest rate of 14-15% p.a. for a loan tenure of 1 to 3 years.
The documents required for the loan approval are
- Income proof (the latest bank statements, last 3 months’ payslips, and IT returns)
- Age proof (birth certificate and 10th or 12th school certificate)
- Identity proof (PAN, Passport Aadhaar card, Voter’s ID, or Driving license.
- Address proof (ration card/utility bills like telephone or electricity bill)
Why Money Mud ?
Money Mud offers a one stop solution to a our client. You can browse through our range of our loan products, apply online!
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