Loan against Car
What is Loan Against Car?
Need Cash? Don't look anyone for help. Make your own Car a helping hand in your Business & Take Loan against it even if the car is already financed. Solve all your business or other needs on your own. Lower Rate of Interest than Personal loans
How much loan you can avail against your Car?
IF Your Car is Loan Free:
Get Refinance loan upto 140% of your car value, If the Car is not hypothecated to any bank/financial institution or is hypothecated but loan already closed/completed. The loan Amount will be determined by the Lender depending upon the value, age, make and model of your car.
IF your Car is hypothecated to any Bank/Financial Institution:
Your proposed Loan amount depends upon few factors as mentioned below:
- Your Previous Loan Amount
- Your Previous Loan Tenure
- Your Previous Car Loan Emi
- No. of Emi’s you have paid
- Your Car make & Model
- Previous Bank/Financial Institution
Your Previous car loan detail
When you apply for a loan against car, your Previous car loan detail plays a big role in sanctioning the loan amount you will get.You can get aloan against your carfor up to ₹50 lakh, but that also depends upon the previous loan amount, loan tenure, Emi, No. of Emi’s Paid, make and model of your Car.
A higher Previous loan amount and Number of emi’s paid would mean a higher car refinance loan amount. For example, if your original loan amount is ₹10 lakh, the proposed loan against car amount could be anywhere between ₹ 12 - 15 lakh. depending upon your loan tenure and number of EMIs already Paid. Out of the total sanctioned loan amount, the foreclosure amount of your previous car loan will go to Previous Bank/Financial Institution to foreclose your previous loan account and you get the balance amount as extra top-up amount in hand
Benefits of Taking a Car Loan
- Can be repaid in easy EMIs.
- No need for providing collateral.
- Great for building your credit history.
- Offers additional benefits.
Can be repaid in easy EMIs
The repayment of your car loan can be made in easy equated monthly instalments (EMIs) which you can decide yourself but will be based on the repayment tenure you choose, and the interest rate charged by the lender. EMIs reduce your burden of having to pay a large sum at once towards the loan repayment. Instead, you can repay in smaller amounts, according to your affordability.
No need for providing collateral
When you avail a car loan, you do not have to provide any collateral as the vehicle itself will be considered as one. The car will be hypothecated to the bank and in case of any default in payments, the lender will have the authority to seize the vehicle, auction it, and recover the outstanding loan amount. There is no need for you to provide any additional security/collateral for a car loan.
Great for building your credit history
If you take a car loan and make timely payments, it will lead to an enhancement of your credit score. Having a good credit score will assure lenders of your good repayment capability and this may translate to them offering you lower interest rates or other benefits such as waiver in processing fees, etc.
Offers additional benefits
These days many lenders offer you bonuses such as free servicing, free road tax, etc., on car loans. Though these additional perks may not be the best reason to take a car loan, it definitely won’t hurt!
