Last Updated on May 20, 2021 by MoneyVisual
Gone are the days when availing a loan of any kind was an inconvenient affair. Borrowers had to take the trouble to take an appointment with the bank or lender, carry a big set of documents, and submit it at the office of the lender. Then there is a long wait while your documents are being verified.
The entire process was time-consuming and complex. Now, with the rise of digital platforms, availing a car loan is a piece of cake. All you have to do is go online, browse through the options, upload some documents, and sit back and relax. In the meantime, your details will be verified at the back end and as soon as it is done, the loan will be disbursed to your bank account. It is that easy.
Not just that, the whole process from applying for a loan and getting it disbursed to your bank account takes place in a very short span of time, usually within a few hours or a maximum of a day’s time. There are a whole lot of benefits that availing a car loan online, particularly a car loan online, offers. We shall discuss all that in the subsequent section but before that, let us understand a few things about car loans.
Why Should I Avail a Car Loan?
Because you know the thrill of driving around in your own car. Owning a car may be an accomplishment for you or it may also impart a sense of freedom in you by empowering you to move around at your convenience. Life is easier and more comfortable when you own a car.
Whatever your reason for wanting to own a car is, a car loan will turn your desire into reality. Earlier, people had to shell out a large part of their earnings or savings to buy a car but now with many banks and non-banking financial companies (NBFCs) offering car loans, owning a car has been made easier and affordable.
By offering easy EMIs (equated monthly instalments) and flexibility to choose the repayment tenures, car loans ensure that you can own a car without disturbing your budget.
There is also no need to provide collateral to avail a car loan as the vehicle itself acts as collateral. Before you avail a car loan, remember to shop around and compare the benefits offered by various lenders before you zero in on one lender. Doing so can fetch you good deals on car loans and help you save money in the long run.
What are My Options?
Many top lenders in India offer car loans at competitive interest rates and some of them have been listed below:
|Name of the Bank||Rate of Interest|
|State Bank of India||9.30% to 9.80%|
|Axis Bank||9.25% to 11.50%|
|ICICI Bank||Tenure up to 23 months – 12.85% Tenure between 24 months and 35 months – 12.85% Tenure between 36 months and 84 months – 9.30%|
|HDFC Bank||9.75% to 10.60%|
Top 5 Reasons Why You Should Avail a Car Loan Online
As stated earlier, when you avail a car loan online, you do not have to worry about visiting the lender’s office carrying a huge set of documents and you do not have to wait long for getting the loan amount credited to your account. Need more reasons as to why you should avail a car loan online? We are giving you five. Take a look below for the top 5 reasons to avail a car loan online.
1. Comfort of Applying from Anywhere
Applying for a car loan online is easy and convenient. All you need is a smartphone, a laptop, or a tablet. You can sit at the comfort of your home and apply for a car loan either by visiting the website of the lender or downloading the mobile application of the lender on your phone or tablet. You need not take the trouble to visit the lender’s office to apply for the loan or submit any physical documents. The online option to avail car loans online also gives you the benefit of applying for the loan at any time you want.
2. Minimal Paperwork
When you apply for a car loan online, you do not have to provide too many documents. All you need is a proof of identity and address, proof of income in the form of bank statements for the last 6 months, salary slip, Form 16, and income tax returns. All these documents can be uploaded online without the need for submitting the physical copies. Some banks such as HDFC Bank offers car loans without any documentation for their existing customers.
3. Instant Loan Disbursals
Once you enter your PAN card and address details, it is verified at the backend and this process does not take much time. After verification, the loan amount will instantly be disbursed to your bank account. So, no more waiting for days to get a car loan.
4. Safety and Security
Since no physical documents are provided when you apply for a car online, there is no possibility of documents being misplaced or damaged. This means that the safety and security of your documents are maintained. Additionally, the information that you enter and the documents that you upload online is kept confidential and are not shared with third parties.
5. Facility of Calculating EMI Online
Many lenders offer an EMI calculator tool on their websites which you can use to check the EMI payment you need to make each month. The tool will help you assess if you can afford to make the payments regularly and if availing a car loan fits your budget. The EMI calculator tool is also available on financial platforms.
Availing a car loan online takes away the inconvenience of making visits to the lenders’ office, submitting a huge set of documents, and waiting for the loan to get approved and disbursed. If buying a car is on your mind, you can find just the right deals on car loans. So, get online and start exploring. Your dream car is just a click away!