Cars with zero down payment are becoming a game-changer in the automotive industry, offering a golden ticket for many aspiring car owners.
With zero down payment Car Loans, the pathway to car ownership is not only accessible but also straightforward, offering a smooth ride into the world of automotive freedom. Whether you're eyeing a sleek sedan, a spacious SUV, or an eco-friendly electric model, the option for zero upfront payment means that your dream car need not wait.
What is a zero down payment Car Loan?
A zero down payment Car Loan is a financial arrangement that allows you to purchase a vehicle without the need to pay an upfront deposit. This means you can drive away in your dream car without having to save for a large down payment, making car ownership an immediate reality rather than a distant dream.
This type of loan covers the full value of the car, and you start repaying the loan amount, plus interest, over an agreed period.
How does a down payment affect the total cost of a Car Loan?
When it comes to securing a Car Loan, the down payment stands as your initial financial commitment, often perceived as a token of trust and financial stability in the transaction. This initial sum is usually a fraction of the car's full price, with the remaining amount being covered by the Car Loan. Traditionally, the larger the down payment, the smaller the loan amount required, which can result in more favourable loan terms, such as reduced interest rates and lower monthly payments.
A significant down payment can not only reduce the overall loan amount but also diminish the cumulative interest over the loan's lifespan, effectively making the car more economical over time. Moreover, it can bolster your loan application, potentially leading to quicker loan approval and the possibility of negotiating better terms.
But what if a down payment is not within your reach, or you prefer to reserve your savings for other expenses? In these scenarios, a zero down payment Car Loan becomes particularly attractive. This type of loan, also referred to as an Auto Loan with zero down payment or 0 down payment Auto Loan, bypasses the need for an initial lump sum, financing the entire purchase price of your vehicle.
Features of zero down payment Car Loans
Zero down payment Car Loans come with a set of features designed to make car ownership more attainable:
- Full financing: Covers 100% of the car’s value, eliminating the need for an upfront payment.
- Flexible repayment terms: Choose a repayment period that suits your financial situation, often ranging from 1 to 7 years.
- Quick approval process: Swift processing times mean you can get approval and drive your new car home sooner.
Who is eligible for a zero down payment Car Loan?
Eligibility criteria for a zero down payment Auto Loan can vary between lenders but generally include:
- The applicant should be at least 21 years old.
- A CIBIL score of 800 or more is essential, with no record of negative loan repayments reflected in the credit report.
- The applicant's yearly earnings must be at least ₹2.4 lakh. The sum of existing loan EMIs and the anticipated Car Loan EMI should not exceed half of the applicant's annual salary.
- Employment status is key; the applicant must either be employed with a steady salary or self-employed, with at least 3 years of professional experience.
- The balance in the applicant's bank account should be at least threefold the amount of the expected Car Loan EMI.
- The applicant must have a clean financial record, with no cheque returns in their salary or business accounts over the past six months.
- Residency stability is also considered; the applicant must have been living at the current address for a minimum of 2 years.
Also Read: How to check Car Loan status online: 7 easy ways
With Axis Bank's New Car Loan, you're not just acquiring a car; you're embracing a seamless purchasing experience. With loans starting from ₹1 lakh and scaling up to 100% on-road funding and tailored to enhance your buying experience, it offers competitive interest rates, the advantage of Axis eDGE Reward points, and more. With a minimum loan amount set at ₹1,00,000 and special benefits for priority banking customers, securing your dream car is now within reach. Don't forget to utilise the Car Loan EMI calculator for a clear picture of your financial commitment as you take this exciting step forward.
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.
