Purchasing an automobile includes the selection of vehicle, negotiation on the price and submission of funds to complete the purchase. For this, the most vital aspect is to source funds from a substantial resource. The auto loan is the best available tool to power the purchase of a vehicle. An applicant can apply for an auto loan or re-finance of the existing loan on the purchase of new or pre-owned vehicle.
A loan refers to money lent by one entity to serve a planned or unplanned event of another entity. It constitutes three main components, namely; the principal (borrowed amount), the rate of interest and tenure. A loan is considered the primary product of a bank or NBFC (Non-Banking Financial Company). They offer a variety of loans to support all your financial requirements.
You can either apply for a loan to fulfill your aspirations like the purchase of a house, vehicle and other assets to make your life more comfortable or else can get the financial support to cater a financial emergency or an unforeseen condition such as social event, medical expenses, higher education, etc.
Are you planning to purchase a new car? We are here with instant loans on the purchase of a new car.
Now, enjoy glitch-free approval on the purchase of pre-owned car that will add comfort and bring in the pride of driving a four-wheeler.
Bring home, a new motorcycle with easy and quicker financing options to purchase a new bike of type commuter, cruiser, and sports.
Power your dreams with loans for pre-owned bikes at an attractive interest rate and fast processing.
Easy financing of up to 100% of the on-road price at affordable credit terms to ease the purchase of your new scooter.
Apply for a hassle-free loan on the purchase of a pre-owned scooter with minimal documentation and triggered approval.
We fund the loan on the purchase of a variety of commercial vehicles that could be used for business and expansion purpose.
The process to pay the existing loan and providing a new loan at a better interest rate on the purchase of a new or pre-owned vehicle.
Purchase an electric vehicle that will help you to save money on fuel and maintenance. Also, the government has simplified the process of financing for the purchase of an electric vehicle.
To perform a transaction on Droom, the borrower must pay a token upfront to book the vehicle. Sometimes, this is an added cost or a significant cost. Personal loans are provided at attractive interest rates on this to ensure the vehicle buyer will not to worry about the finances.
Any vehicle purchased that is either new or pre-owned must be registered at the Regional Transport Office and to be insured. The loan towards the cost of insurance or RTO registration which is provided as a personal loan is offered at an attractive interest rate.
The personal loan is recovered in-between a timeframe of 1 to 6 months depending on the amount.
It is important to read the loan repayment terms. Considering an applicant might get quoted for a smaller EMI amount for a period of five years, but the total repayment including interest in five years is much higher. So, go for a loan repayment tenure that matches your repayment capacity.
Search and shop the best interest rate offered by various banks or financial organizations before getting an auto loan. It is recommended to obtain quotations from different lenders for the desired automobile.
Most of the banks and financial institutions demand for the similar set of documents that needs to be completed and verified along with a sound credit profile to fulfill the approval of the auto loan.
Read the terms, before finalizing one for your purchase. Some banks and financial institutions levy heavy penalties on delaying the monthly installments. Also, check for the processing fees, service tax, foreclosure penalties.
Now, most of the auto loan financers are offering easy to use online EMI calculators. Using this, the customer can plan the EMI’s based on the interest rate on the purchase of a new or used vehicle.
Check and inquire about the latest auto finance options. Sometimes, the lenders come up with model specific offers that are liable for the purchase of a specific variant.
A customer should check and compare the benefits, perks and limitation of each program before finalizing the auto loan. The providers for Auto Loan include;
Banks: Banks offer a wide range of loan programs offering varied interest rate, processing fee, equated monthly installments (EMI’s), pre-closure fee and more. Both, the private and government banks provide loan for different categories of vehicles.
Non-Banking Financial Companies (NBFC’s): These are privately held organizations offering financial support services for variant fragments. They generally charge higher interest rates in comparison to a bank. NBFC’s are non-government organizations that do not follow the rules and regulations defined by the Reserve Bank of India.
The percentage of down-payment against the auto loan will be defined by the loan provider (Bank or NBFC). Also, some organizations provide loan for almost 100% of the on-road price for a vehicle.
In most of the cases, the customer can negotiate the loan interest rate based on the credit profile including the CIBIL score and history.
Yes, you can pre-pay the entire loan amount by paying a nominal loan closure charge.
A salaried professional is required to submit the ITR. Considering the case in which, the applicant is not able to provide the ITR, then can present a detailed bank statement that clearly reflect his salary and a letter from his Company Admin or HR.
Yes, the auto loan tenure in general cannot be changed after the disbursement of the loan, as it requires new set of credit evaluation, documentation, etc. However, some banks may allow this under exceptional circumstances.
Yes, you can make use of the documents of your spouse, friend or relative for availing an auto loan. Also, the applicant will have to make the associated member a co-borrower and submit the required set of documents.
The maximum tenure is of 3 and 6 years for a two-wheeler and four-wheeler respectively.
Yes, insurance is mandatory for availing an auto loan.
No, you cannot transfer the auto loan of one vehicle to other. However, can switch the auto loan from other bank or NBFC and get it re-financed from Droom Credit.
Yes, you can reduce the EMI by changing the tenure of the loan. For this, the customer will have to share the National Automated Clearing House (NACH) and income proof.
The permissible age is from 18 to 58 years for getting an auto loan. However, the upper age limit can be relaxed in some special scenarios.
The interest on Auto Loan can be treated as an expense, in case the borrower has business income. This reduces the taxable profit, thereby reducing the payable Income tax.
