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Car Loan

What is Car Loan?

Car loan is the loan (or the use of) a motor Car for a fixed period of time at an agreed amount of money. It is commonly by dealers as substitute to Car purchase but is widely used by businesses as a method of procuring (or having the use of) Car for business, without the usually needed cash outlay. The subject of Car loan constitutes the different financial products which allows someone to acquire a Car. Car finance is needed by both private individuals and businesses. All types of finance products are available to either sector, however the market share by finance type for each sector differs, partly because business contract hire can provide tax and cashflow benefits to businesses.

Merits/Pros

Flexible contract terms, or length are available (ranging from 2-10 years)

A residual can be applied to the loan, reducing the monthly installments

Borrowers have a choice of fixed or variable interest rates

A deposit can be used (either cash or trade in) which reduces the size of the loan needed

A tax deduction may be applicable if the vehicle is to be used for business purposes

Lower interest rates are available as the loan is secured against the car

Documents Required

2 Passport Size Photographs

Aadhar card

PAN Card

Resident proof

Office proof

R.C. Book (For Used Car)