The first thing is to fix your budget. Nowadays budget is the most important criteria for determining the car of your dream. But their are other aspects too. If you have no idea on How to get a loan to buy your own car, here we are present to help you. We are going to elaborately demonstrate the procedures for Car Loan Processes in India. There are a lot of paper work also present in every steps of the process which generally takes the time of average 5-7 days. Some of the banks gives Quick Loans in 30 Minutes like HDFC banks, but they also charges a high interest. Here are the entire process shown below :
Step 1: Enquiry by a Lender
You first have to choose a market lender. You can search in google or ask any friend for a good lender of cars. it generally varies from places to places. Like, it is difficult to get in touch with a loan lender in remote villages and it is too easy to find lenders in metro-cities. You can also enquire with multiple lenders. It will take some time and hard work, but it definately save your money.
Step 2: Negotiation for Lowest EMI
Then negotiate with the lenders to get the cheapest interest rate (EMI). The lender will as usual look into their own interest. They will charge you high if you have no idea about the interest rates. so, you must negotiate with them to get lwest rates according to your budget. It is always advisable to talk with as many lenders as possible.
Step 3: Documents Collection
Once you have fixed a deal with your lender you generally don't have to do much work. Your lender will do the work for you. for which he will take some ammount of commission to. The selling agents normally collects the documents from you and does the paperworks on behalf of you. Here we also give you the list of documents needed :
Income Tax Returns
Passports (if any)
Normally this documents varied from lender to lender. But the list given here is the standard chart of documents required.
Step 4 : Documents Verification
A field invetigator or the representative of concerned bank or the Field investigation agency will come to your place for documents verification. He/She will double check the information given by you are correct or not. You must present at time time of verification with the representative. failing the verification of the documents will lead to rejection of the loan.
Step 5 : Loan Approved
Once you complete all the steps within 4-5 days your loan will approved. the amount will come to you via cheque or demand draft (DD).
New Aspects on Car Financing
There are a lots of new process too, for getting loans with less time and less interest rates. banks like HDFC also start "Car Loans in 30 minutes from Apllying" scheme. Other banks like, SBI, UCO,Axix,Alahabad Bak,ICICI having their own schemes for car loans. You just have to see what is best suitaed for you.