Get a Car Loan and drive away in your dream vehicle without the financial burden weighing you down. In today's world, owning a car is not just a luxury but a necessity for many. It facilitates easier commutes, family trips and a sense of independence. However, the upfront cost of purchasing a vehicle can be daunting. This is where car financing comes into play. It offers a viable pathway to car ownership for individuals and families alike.
Whether you're eyeing a brand-new model straight from the showroom or a pre-loved car with character, understanding how to navigate the process of securing a Car Loan, Vehicle Loan or Auto Loan is your first step towards inserting the key in your new car.
Get an Auto Loan by following these simple steps
Embarking on the journey of car ownership? Here's how to get a Car Loan and navigate the application process with ease.
Once you've chosen your lender, figured out the amount you need, and settled on the loan type that best fits your financial plan, the following steps will guide you through the application -
- Start by visiting your lender's local branch or their online portal. This is your first official step in the journey of how to get a Vehicle Loan.
- Complete the Car Loan application form meticulously. Attach a copy of your photo ID along with any other necessary documentation.
- If convenience is what you seek, you might ask, "How do I get a Car Loan without stepping into a branch?" The answer lies in the digital age — apply online.
- Upload all the required documents on the lender's digital application platform.
- After submission, the lender will begin the evaluation of your application. Stay informed with updates on your Car Loan application status, conveniently delivered to you via SMS or email.
Documents required for Car Loan application
When applying for a Car Loan, you will need to provide certain documents to prove your eligibility. These typically include:
- Proof of identity (Passport, Driving License, etc.)
- Proof of income (recent salary slips or tax returns)
- Proof of residence (utility bill or lease agreement)
- Credit history report
Factors that affect Auto Loan rates
When embarking on the journey of how to get a Car Loan, it's important to be aware that Auto Loan interest rates can vary significantly based on several key factors that both lenders and borrowers should consider. Here’s what could affect your interest rate when you apply for a Car Loan:
- Debt-to-income ratio (DTI): Your DTI is a crucial figure representing the portion of your monthly income that goes towards debt repayments. When figuring out how to get a car on finance, bear in mind that a high DTI ratio — say, around 50% — could complicate your financing approval.
- Loan terms: Longer loan terms generally carry higher interest rates but come with the advantage of reduced individual payments. However, be cautious with extended terms, such as those spanning 84 months, as they can result in a hefty cumulative interest cost over time.
- Vehicle type: The interest rates for loans on used cars and vehicles with higher mileage tend to be steeper than for new cars. The vehicle's value is also a determinant of the rate you're offered.
- Industry competition: The Auto Loan market is competitive, and rates can be influenced by what others are offering. Lenders are always keeping an eye on the competition, which can work in your favour.
Also Read: How to avail 24x7 Top-Up Car Loan?
For those pondering "How do I get an Auto Loan with the best interest rate?", understanding the dynamics of Auto Loan rates is key. A good credit score can be your ticket to more favourable rates, as it indicates to lenders that you're a low-risk borrower. So, it pays to keep your credit health in check when considering how to get a car on finance.
Axis Bank’s New Car Loan simplifies your journey to car ownership, offering loans starting from ₹1 lakh with up to 100% on-road funding. It is complemented by enticing benefits such as competitive interest rates and Axis eDGE Reward Points. Utilise the Car Loan calculator for precise EMI estimations and enjoy additional perks as a priority banking customer, making the path to acquiring your new car as smooth as possible.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
