You are currently viewing How to Get Car Loan Easily in India 2022

How to Get Car Loan Easily in India 2022

4.3/5 - (15 votes)

Topic: How to Get Car Loan Easily in India 2022 / Guide on Save Money on Your Car Loan

India is the world’s second-largest car market and growing rapidly. Buying a new car from a showroom or outside can be quite expensive but if you want to buy a used car, then it becomes affordable.

There are plenty of ways in which you can get a car loan easily such as banks, financers, lending companies, and so on. But the best option is to take personal loans since they are manageable and easy to repay.

Personal loans like home loans offer attractive facilities like low-interest rates and longer repayment periods for easier managing the cost of your vehicle over time.

But getting a personal loan is not easy as it requires several things to be considered such as your credit score, CIBIL score, income, and several other factors which the bank looks at before approving your loan.

And with so many guidelines from the government and the banks, it becomes quite difficult for a common man to understand the process of getting a personal vehicle loan.

So here are some tips that can help you get a car loan easily in India.

1. Check Your Credit Score Before Applying For A Personal Car Loan:

The first thing that you should do is check your credit score. Before applying for any kind of loan, you need to have a high credit score because it will give you an upper hand when negotiating with the financer.

Here are two ways you can find out your score:

Credit Score Checker (Credit Card): This is a site that is used by banks to check credit scores. It takes the hard copy of your statement and shows it on a display to determine your creditworthiness.

You can get these Credit Scores from banks or finance houses in India that do this job.

Credit Bureaus: All major banks have credit bureaus that provide you with free reports. The report includes details such as credit rating, how much debt you have, and how long ago was the last time someone required a loan from you.

Every few weeks, the credit report is updated by using the Credit Scorecard. Credit bureaus also check the credit score of every person. You can check your report from any one of them as mentioned below:

Credit Reports: A credit report is composed of three major sources and this is the best way to check your credit score. Go for the Credit Scores Report that you can get yourself by filling up a form online or requesting a printed copy.

This kind of report has information regarding your credit history, which includes your outstanding debts, credit reports, etc. Other than these two forms, you can also get them from your bank or insurance company.

Credit Reference Agencies: The Credit Reference Agencies are financial institutions that give out free credit reports every year. There are many agencies that provide this report and some of them are mentioned below:

Santander Bank: A Santander bank branch will provide you with a free copy of your credit report once a year.

You can get your report done from any branch of the bank. However, this is an annual facility, so the next time you need to get it, you will have to pay for it.

HSBC Banking Corporation Limited: This is one of the best Credit Reference Agencies that provide free credit reports regularly to their customers. You can get a free report by calling on +91-800-0836686.

There may be a few restrictions regarding how many times you can get your report, but this should not be a problem as you can get it multiple times until you find out who your riskiest creditors are for getting loans in the future.

Standard Chartered Bank: Standard Chartered Bank also offers you this facility along with their other services such as credit cards, insurance, etc.

Contact the bank branch and they will provide you with the report on a chargeable basis (which can be around $1).

American Express: The credit reference agency of American Express is called Experian and it provides its customers with free copies of their credit reports in different formats.

You can get a free copy of your report by calling on +1-888-397-3742 or by filling up a form online.

2. Ask Your Credit Score Before Applying For A Personal Car Loan:

The second important step to get car loan easily in India is asking about your credit score before applying to any financer because the scores may vary from bank to bank.

Asking your score therefore helps you in knowing which financer to apply to and which one not to so that you end up getting the right loan amount at the right time.

Also, there are several banks and financiers that use a formula to calculate your credit score. They will use this formula to give you an accurate credit score that you may or may not be aware of.

So it is better if you know your score so that you can take any important decision regarding future loans in the best way possible.

3. Know Your Risk Profile Before Applying For Car Loan- Personal Vehicle:

 A personal loan like a home loan will help you repay the cost of the car over time but with some restrictions such as the maximum period for repayment of the loan,

plus the interest rate for the duration of the loan which should not be more than 20% per annum.

If you have a low income and no credit history, then it will make your application difficult to approve.

Therefore it is better to know the reasons behind getting a personal car loan because knowing your risk profile is the key factor before applying for a personal car loan.

Checking your credit history will help you understand the reason behind getting a personal loan easily on time and at a lower interest rate. Also checking your credit report will help you know what kind of payment arrangement you can afford or not.

4. Ask The Right Questions To The Finance Company When Applying For A Personal Car Loan:

In India, getting a car loan easily is very common because of several reasons but if you want to get the best deal, then it is important to ask the right questions to the financer.

So before applying for a personal car loan, you need to ask some questions like:

– What are the total outstanding amounts?
– How long will it take to pay off the entire loan amount?
– What are the monthly installments and if they are fixed, then what payment options do they provide?  For example, you may have to pay monthly installments of ₹ 12,000 or ₹ 15,000.

Do you have any flexibility in this regard or not?  If yes then do you get any other option such as an installment plan or how much does it cost for this finance plan etc.?

Also, what is your interest rate for a personal car loan in India?

5. Keep Your Repayments Low With Personal car Loans:

A personal car loan helps you pay less interest rate than any other home or car loan.  You might have to think twice before applying for it but with low monthly installments and extra payment options,

you can easily keep your repayments low with personal loans.

The above-listed points will help you know the best way to get a car loan easily in India so that you do not have to experience any kind of problem in getting the money or signing a deal for any kind of financial product.

So follow these simple steps and get the right finance plan at the right time that can help you sail through all your financial difficulties easily without compromising on anything.

Have an awesome day!

This concludes our post “How to Get Car Loan Easily in India 2022”  We hope that you found out more about what this topic is all about!

What do you think of this information? Please leave us comments below or send us a message on Twitter @Finestdeals_01.

Leave a Reply