A gift holds an important meaning in our life. Apart from birthdays, festivals are the time of the year where you show your love and affection through gifts. Diwali is already here and I am sure most of us are searching for the perfect gift for the loved ones. Not just for others, but gifting something to our own selves can be considered as an act of self love. So this festive season gift your loved ones and you freedom. Bring home a car now and get the best deals for the car of your dreams.

Buying a car is a costly affair and it should not be taken as lightly but at the same time, buying a car during the festive season can be one of the best decisions you will ever make. This festive season not only brings huge discounts on your favorite cars, but also brings great deals for financing your car. There are a lot of financial aid out there that provides you with one of the best deals, in turn making you save even more.

Here are a few of Diwali Offers that we would like to share to buy your new car this festival.

• PNB car finance

• Floating based on MCLR rate

8.9% flat rates for women and 8.9% if the credit score is above 750, 9.1% if credit score is between 700 and 750 and at 9.35% if credit score is below 700.

Processing fees for this are, Rs 1180 for Loan upto 6 Lakhs and Rs.1770 if the amount is greater than 6 Lakh.
 

• Based on external benchmark rate-repo rate.

Under new scheme, 8.65% Onwards where Interest rate linked to Repo Rate.

Processing fees:- Rs 1180 for Loan upto 6 Lakh and Rs.1770 for greater than Rs. 6 Lakh Loan amount.

 

• Bank of Baroda

90% on road finance - 7 years.

Interest rate starting at 8.95% Onwards. The rate can get higher for Low CIBIL Score.

Processing fees:- Rs 590 including GST till 31st December 2019
 

• SBI Car Loan

• 90% On Road Finance - 5 Year

8.9% interest rate if Credit Score is above 750 or the consumer is a Corporate Salary Account Holder.  9.15% if Credit Score is between 700 and 750. 9.4% for below 700. Finance upto 90% of On Road Price and available for an extended period of 8 Years

Processing fees:- zero till 31st October 2019

 

• For Fixed Interest rates for 6 and 7 years.

9% interest rate if Credit Score is above 750 or consumer is a Corporate Salary Account Holder. 9.25% if Credit Score is between 700 and 750, 9.5% otherwise. Finance upto 90% of On Road Price and available for an extended period of 8 Years

Processing fees:- zero till 31st October 2019

 

• Union Bank of India

Union Miles Car Loan

9.05% interest rate

Processing fees:- Rs 1180 including GST

 

• IDBI Bank

• Fixed Rate

9.2% interest rate if CIBIL score is above 800, 9.3% if CIBIL score is above 750 and 9.4% if CIBIL is above 700. 9.8% rate for a CIBIL less than 700.

Processing fees:- Rs 1180 including GST

 

• Floating Rate

8.9% interest rate if CIBIL score is above 800, 9% if CIBIL score is above 750 and 9.1% if CIBIL is above 700. 9.5% rate for a CIBIL less than 700.

Processing fees:- Rs 1180 including GST

 

• Allahabad Bank

Dream Car Loan scheme

85% on road price for 7 Year for Individual. 85% of on road price for 5 Year for Companies. 

Interest rate at 8.65% Onwards which Varies based on CIBIL Score. It can go as high as 10.9% for Low CIBIL Score.

Processing fees: 5% of Loan Amount + GST

 

• Private Banks

(for eg- ICICI, HDFC Bank etc.)

Pre Approved offers for existing Bank Account Holders and Low Documentation

9.26% rate for car loan amount above 20 Lakh, 9.51% between 10 Lakh to 20 Lakh and 9.75% between 5 Lakh - 10 Lakh. 10% interest rate for amount under 5 Lakh.

Processing fees: Rs.2,500 – Rs.6,000

Private banks also provide with some customized car loan schemes. Below are a few of the customizable schemes provided by HDFC or ICICI bank.

• Car Loan  Step Up Scheme

Customized Scheme where the Loan EMI is increased by 10% every 12 month. Ideal for people with fixed salary, where the customer faces least burden to pay off in initial years and when salary increases can pay up higher EMI in later years

• Car Loan Bullet EMI Scheme

Again meant for salaried class, where they pay off lower EMI for 11 month and 12th EMI as Bulk EMI as the remainder from the annual bonus they get..

• Car Loan Balloon EMI Scheme

Here, the last EMI is the bulk EMI and is normally 30% of the loan amount. Rest EMI will cover 70% of the loan amount. Its aimed at having lower EMIs during course of tenor and the max payment in the last EMI. Particularly useful where one looking to sell his car at the end of tenor and can square off the last EMI against sale of car proceeding.

Eligibility criteria for car loans:

• Minimum 2 Year Work Experience for Salaried personnel,  3 Year for Self Employed & Net take Home Salary at Minimum  of Rs 20,000 per month after deducting Taxes, PF. While for Self Employed 3 Lakh ITR is considered bare minimum.

• The Maximum Car Loan Amount with most Banks is restricted to 3 Times the total Annual Income or Annual Salary subject to maximum Proposed Car Loan EMI combined along with all other EMI running which is less than 50% of Net Monthly Salary.

• 6 Month Salaried personnel with Current Account Bank Statement with less than 2 cheque return

• Requires KYC, Income and Banking Documents. 

• If Rented then at least 2 year in City with Permanent Address Proof and Landline Number.

• For Self Employed, Office address proof with Landline Telephone Number is required.

3 steps of car loan one should know before applying for a car loan:

• Pre-Approval

You need to submit your Income Documents with Bank Statement of last 6 months along with KYC Documents ie. ID Proof, Address Proof, Signature Proof and 2 Photographs along with previous loan details (if any), Business / Job Continuity Details and if you have an owned residence then, ownership proof documents. 

Bank will conduct necessary checks including Field Verification, Document Verification and assess Credit Report to determine Eligibility to borrow.

• Post-Approval

Once the loan is sanctioned, you can sign in Loan Agreement. You have to hand over Margin Money Receipt with Invoice, submit an ECS Mandate with Security PDC for essentially loan disbursement.

• Loan Disbursement

The last step includes the Bank to process the loan for final disbursement after deducting loan processing fees and direct payment is done to Dealership through RTGS. A message will also be  sent to the customer informing the loan disbursement. 

One should definitely compare Loan Amount, Interest Rate, Tenure, EMI, Advance EMI to be paid, Processing Fees, Loan Disbursement Amount of all the car finance options out there and decide which one suits the best. A good finance can make your car purchase hassel few and make the payments to go smoothly. Finding a good EMI scheme for your car is essential and it is something one should spend time on researching. 

Visit mynewcar.in to search, compare and select the car of your dreams. Mynewcar.in also provides you with the ‘advice’ column that is a set of articles mainly designed to answer the day to day car related questions of a customer. From buying advice to new car launches, latest offers and automobile news, mynewcar.in got you covered for all. Not just that, mynewcar also provides you with car maintenance tips and also with car driving tips which makes caring for your car much easier.

Mynewcar.in also brings you new offers on your favourite cars every month. now you can also sign up for new offer notifications and daily car related updates. And if you are looking for a financial option, click here to calculate the emi of your favourite cars now.