Vehicle Loans

Nowadays horizons are expanding and cities are becoming bigger. Commutation and transportation takes a lot of time away from people. Public transportation has its own limitations. Possessing your own vehicle is the best way to deal with these issues. With many banks and Financial Institutions (FIs) ready to offer auto loans, owning a vehicle is not too difficult.

Just check if you fulfill the following conditions and once you do, you can be a proud owner of your favorite vehicle very soon.

1. The Equated Monthly Installments (EMI) of the proposed loan should not exceed your Net Monthly Income (NMI). NMI is net of all taxes and other liabilities.

2. The loan is repayable in a minimum period of six months to usually 60 months and in special cases 84 to 120 months in the case of high-end vehicles (here again the NMI-EMI rule of point 1 is applicable).

3. Usually maximum loan eligible is 75% of the cost of the vehicle (In special cases, it may go up to 90% subject to NMI-EMI rule).

4. The vehicle should be completely insured and due hypothecation charges are marked in favor of the bank/FI.

5. The loan amount plus your margin brought in are paid directly to the dealer/supplier of the vehicle.

6. In case of default in serving the loan, the vehicle will be confiscated and sold in auction by the bank/FI.

The above are for new vehicles. In case you are interested in used vehicles, you can still avail auto loan for the second car/used car purposes subject to some additional conditions besides those applicable for new vehicles.

If you are interested in knowing about what must be done to get a vehicle loan and where to get it, visit Vehicle Loan and to know about other types of loans that can be considered, especially mortgage loans, visit Mortgage Loan