Top 5 car loans in India in 2020 that you can consider taking

apply for car loan

There was once a time when buying a car was supposed to be dream by only the wealthy and upperclassmen. However, right now it has turned into a necessity. Top banks are giving popular car loans in India at much convenient interest rates. Hence, we are trying to give a list of the top 5 banks giving the most affordable car loans in India. Here’s a list for an instance:

Popular car loans of 2020: 

SBI Bank:

The most important benefit of the SBI car loan is that it has NIL processing charges with no foreclosure charges. You can take a car loan with tenure of a maximum of 7 years, for instance. The fixed interest rate for SBI car loan is 9.30% to 9.80%. To sum up, you can avail of a loan if your income as a salaried employee is 2.5 lacs p.a and your net profit is 3 lacs p.a as a self-employed professional. 

Axis Bank:

Axis bank offers a loan of maximum up-to 8 years. The processing charge is a minimum of Rs. 3500 and a maximum of Rs. 5500. The foreclosure charge is 5% of the principal outstanding. To sum up, you can avail of a loan if your income is 2.4 lacs p.a as a salaried employee and turnover is 1.8 lacs p.a as a self-employed professional. 

HDFC Bank:

HDFC offers loans for a wide variety of cars and multi-purpose vehicles up to 3 crores for a tenure of up to 7 years. The processing charge for HDFC bank car loan is 0.4% of the loan amount, 3000 Rs minimum and Rs. 10,000 maximum and foreclosure charge is up to 6% of the principal outstanding. To sum up, you are eligible for an HDFC car loan if your income is a minimum of 3 lacs p.a as a salaried employee or as a self-employed professional. 


ICICI bank is one of those banks that offer loans for new, pre-owned cars and even provide loans against the car. The interest rate is from 8.65% to 16.70% for tenures up to 7 years and the foreclosure charge is 5% of the principal outstanding. To sum up, you are eligible for a loan if your income is 2.5 lacs p.a as a salaried employee and 2 lacs p.a as a self-employed professional. 


PNB gives loans for multi-utility cars and sports vehicles. The processing charge is up to 6 lacs, while the minimum amount being Rs. 1000. The foreclosure charge is 2% of the outstanding prepaid. To sum up, you are eligible if your income is 2.4 lacs p.a as a salaried employee. 

All You Need to Know About Two Wheeler Loans

two-wheeler loan

People crave comfort and that, of course, comes with a new vehicle. Besides that, owning a two-wheeler is still an achievement even in many societies like India. As the market has started flooded with many fascinating two-wheelers, people purchases these bikes not for only regular use, but also they purchase their two-wheelers to fulfill the dream of having an alluring bike. Further, most of the people start their vehicle riding journey with the two-wheeler. So if you are also decided to purchase a new two-wheeler, a Two Wheeler Loans are one of the best and safe way to purchase a two-wheeler and to finance the purchase as well.


 Below we are describing some basic information that can help to get the Two Wheeler Loans


 You have followed certain eligibility criteria:

When you are applying for the two-wheeler loan, then the process is quite convenient and easy. But there is an age-eligibility criterion that applies for all. If you are a person who is below the age of 21, then you cannot apply for the two-wheeler loans and it is the most important criteria in the case of a two-wheeler. The person whose age stands between 21-58, they can apply for the loan. Before applying for the two-wheeler loan you must know


 You have to follow the documentation process:

Unlike other loans, a two-wheeler loan has a less difficult loan disbursement process. Although it is a very easy process yet to complete this process successfully, it is very essential to submit all the documents, because all your documents will make approve your two wheeler loan. Here is the document list that you need to provide


  • Age proof
  •  Photo-ID
  • Driver’s license
  • PAN card
  • Voters ID card
  •  Your passport
  • Tax receipts
  • electricity or telephone bills 
  • Proof of residence.
  • Most recent salary slip 
  • Bank statements 
  • A regular source of income  source
  •  If you are a businessman then the balance sheet of your business
  •  A vehicle purchase receipt or purchase invoice

  You have to mention the loan structure:

Unlike many other vehicle loans, it is almost impossible to cover the whole cost of the vehicle with the help of a two-wheeler loan.  And yes it is a bitter fact. Actually, the two-wheeler loan helps people to get a substantial amount to buy the vehicle, but this loan generally does not covers the whole amount. This loan covers a maximum 85% cost of the vehicle but the rest 15%, you need pay to owe the vehicle.


 Know your repayment tenure:

Two-wheeler loan costs less in comparison to many other loans. The repayment tenure is related to the vehicle loan remains between 12 months to 36 months. You can select your repayment period as per your convenience and preference. However, this tenure period varies from one financial institution to another financial institute. Apart from that while you are deciding over the time period, think thousands of times before selecting it, whether you will able to continue to repay the loan within that period or not. This planning will ensure to get rid of the risk of loan default.


 Online loan:

 It is very simple to apply for the two-wheeler loan on the online mode. If you have already decided to apply for the loan, then we recommend you to go for the online mode as this is hassle-free and time-saving. Nowadays thousands of financial institutes come with the online two wheeler loan process and they provide many facilities along with many offers. If you apply for the loan in online mode, then you have the option to avail of the offer. Besides that, you can upload your documents through the site of the particular financial institute and so in this way you can also maintain your privacy.


 Other things that are important for getting the two-wheeler loan is written below:


  •  You need to have a high credit score to get the two-wheeler loans. However, some of the financial institutes offer a two-wheeler loan in minus credit score. But needless to say, no financial institute  grants two-wheeler loan to those individuals who have the credit score below 700,  
  •  You have to provide credit assurance
  •  You have to show an established source of income.


To conclude, we can say this basic information related to vehicle loans may help you in an overwhelmed way.