| | | | | of the car will be duly returned when the applicant |
| Definitely, the boom in economy and the | | | | has repaid the entire borrowed amount. |
| resurgence of middle class has led the automobile | | | | Interests on the loans are offered on the basis of |
| industry to launch new vehicles every now and | | | | borrowers prevailing circumstances, income and |
| then. Due to the increase in purchasing power, | | | | past records. However, if the borrower offers a |
| most of the people are now buying cars like | | | | large amount as down payment, it is assured that |
| never before. A major chunk of the borrowers | | | | the lenders will approve the loans at |
| although prefer obtain auto loans because of the | | | | comparatively low interest rates. |
| benefits such as tax deduction and other factors. | | | | Some necessary documents are required while |
| However there are certain aspects which must | | | | availing these loans. For instance, it is a must for |
| be taken in to account, before availing the loans. | | | | the borrower to produce documents such as |
| All the major banks and financial institutions in India | | | | identity proof, residential proof along with income |
| are offering the loans. The loans are usually | | | | details. A salaried borrower has to submit recent |
| offered on the basis of the borrower’s | | | | salary slip, form16 and bank statements for the |
| income. Usually the amount offered is 3- 4 times | | | | past few months. On the other hand, a self |
| that of annual salary of regularly employed | | | | employed person has to provide bank statements |
| applicant. In case of self employed and business | | | | for the last 2 years. |
| man, it is 6 times that of annual income. In | | | | While availing India auto loans, do not sign away |
| general, any applicant can obtain 90-100% of the | | | | any particular deal. Instead, you should take a |
| total finance. In fact, finance is also available to | | | | proper research and ensure that no hidden |
| purchase used car. | | | | charges a re being levied. Keeping your |
| The loans are similar to secured loans as the | | | | requirements in mind go through the terms and |
| concerned lenders would take the car as collateral. | | | | conditions of various banks and financial |
| This basically acts like an assurance for the lender. | | | | institutions. You can also use the internet in this |
| But that does not mean that the applicant cannot | | | | regard. |
| use the car for personal purpose. The documents | | | | |