Auto Loans
With a plethora of auto loans opportunities available these days, it is now possible for you to buy your dream car. Loans are available both for the new cars and old cars.
Before deciding on an auto loan look for various auto finance schemes available in the market. You can choose from margin money schemes, advance EMI's schemes and deposit payment schemes. The size of the loan will depend upon the cost of the vehicle, the type (standard or premium) and the percentage financing you are offered. In case of a new car you can get loan up to 90% of cost of the car. Some finance agencies have a limit beyond which they do not offer loans. Most of the financiers have different terms for different models. For example, Maruti 800 has a high resale value. In case the buyer defaults, the finance company can get a higher resale value for the car. Therefore, the finance company may give higher percentage of finance.
There is no necessity for any collateral to get a car loan. Usually, the bank or finance company hypothecates the car in its name. The endorsement for hypothecation is made in the Registration Certificate (RC) book of the vehicle, which is cancelled after the loan is repaid.
Usually the tenure of auto loan varies from 1 to 5 years. However, there are some banks with schemes, which offer loans for 7 years.
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