Car Loan Meaning, Features, and Eligibility

vehicle loan meaning
vehicle loan meaning

The UCO Bank vehicle loan aims to ensure that you drive around the city in your vehicle! Choose a pre- approved vehicle loan to get the best interest rates. Before applying for a car loan online, use the vehicle loan EMI calculator to calculate your EMI. Apply for a UCO Bank for a car vehicle loan to make your dream of owning a car a reality.

vehicle loan meaning

Floating rate of interest means interest rate fluctuates based on the changes in RBI’s Repo Rate. Depreciation using Straight Line Method @ 15% for the first year and @ 10% for subsequent years. Paper-less, digital, hassle-free process including features such as video KYC, digital agreement, etc. Congratulations on deciding to buy a white elephant that is coming to you with a huge debt that you will be paying off for the next 10 years of your life.

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You will be eligible for a lower loan amount, regardless of your income, if you have a high DTI score. This increases the chance of your loan terms being strict. The repayment structure most commonly followed for a car loan is equated monthly instalments . The financing can go up to 85%-90% of the on-road price of the car. Some banks offer up to 100% financing on the vehicle’s on-road price to certain conditions.

One more smart decision you make is protecting yourself during the buying experience. Loan can also be availed by Companies / Firms for professional use i.e. purchase of vehicle for usage by their Directors / employees. Applying for a car loan is easier as it requires less documentation as compared to a home loan. Also, there is no additional collateral asked for as against in the case of the former. Processing fees are charged when the application is processed. It varies from one bank to another and is in the 0.4-1% range of the loan amount.

vehicle loan meaning

Eligibility – Do not apply for a mortgage amount that exceeds your eligibility, as this will outcome in the rejection of your mortgage utility. – Chose a loan that offers you one of the best rate of interest along with the mortgage quantity you need. They make sure to inspect every detail with care before committing to a deal. Union Bank of India offers a vehicle loan EMI calculator to help you make a wise choice. Different banks may charge different documentation and processing fees.


The car loan will cover the remaining balance of the purchase price. Your required loan amount reduces when you pay a higher down payment and so does the loan interest rate. It includes repayment of the principal amount and payment of the interest on the outstanding amount of your Federal Bank car loan.

(Aghh! There are so many!) The frequency of payment of this service tax differs from one bank to another. Where some lenders charge it at once, in a few banks, it is payable every year. Every manufacturer of quality products always works hard to put forward their best products to catch as much of the buyer’s financial pie. Underlying this is relaxed financing conditions, in which lenders are willing to make the financingvehicle loan agreement process as smooth as possible for the consumers. Therefore, now you have got a situation where you can easily purchase your dream car. In the case of used car loans, the age of the vehicle matters a lot in deciding the interest rate; it is a deciding factor in accepting or rejecting the loan application.

People often buy gold, clean their houses redecorate them and buy new things like clothes, gadgets and even cars. Although most lender would not specify minimum salary, you salary must exceed a predetermined threshold as required by the lender. Tenure vehicle loan meaning – The tenure or the period is the time within which you repay your loan. The Equated Monthly Instalment is made up of the principal and interest portions of the loan. As a result, the EMI equals the principal plus the interest paid on the car loan.

What is a synonym for vehicle loan?

synonyms: auto loan, automobile loan.

In developing economies like ours, the adage holds true, especially for those with humble beginnings – no ivy league pedigree, no big… They make the processes very clear and easy to understand, and I will definitely recommend them to others in the… I had a very good experience with TMFL, especially with regard to the loan process, which was speedy and transparent. Stamp duty charges not mentioned here is charged as per actual expenses incurred while procuring the loan facility.

What type of loan is an auto loan?

Once you have paid off the loan amount as well as the interest rate applicable on the amount, you can have the hypothecation removed from the vehicle’s Registration Certificate. Cars today are a status symbol, as well as a utility that serves day-to-day purposes. Essential to your comfort and to the demands of time, your aspirations to own a car are now within reach. We at Ruloans have collaborated with several well-known banks and NBFCs to offer you an array of car finance solutions for a comfortable living. Ruloans has on offer tailor-made car loans that differ in terms of individual abilities, and other factors. To own a car, talk to your Ruloans Team for beneficial alternatives via phone, email, or chat, and apply for a Car Loan to get your Ruloans’ Flexible Car Loans Advantage.

What personal loan means?

A personal loan is a loan that does not require collateral or security and is offered with minimal documentation. You can use the funds from this loan for any legitimate financial need. Like any other loan, you must repay it accordance to the agreed terms with the bank.

Lenders will want its customers to have a loan that they can pay on time. If you have other debts and you are opting for a new loan, then it will lower your chance of procuring a loan. You can better your Debt-To-Income Ratio by paying off your pending credit card debts and other loans. Lenders offer car loans with easy equated monthly instalments, which make it easier to afford a car without disturbing one’s budget.

• Two-Wheeler Loans

Most often people get tricked with such loans and regret later. You would also need to provide proof of income, such as Form 16, Salary Slip, Latest Income Tax Returns, or Bank statements of last 6 months. Another money-saving tip for consumers is purchasing vehicle accessories via an independent vendor, saving as much as 20-80% off on the original cost. Before buying a new car, bear in mind that the decision should be made carefully, whether you can afford it or not. In addition to the actual buying price, there are several other expenses which will affect your monthly budget like Insurance, Maintenance, Gas. Companies / Firms for purchase of vehicle for usage by their Directors/employees.

It’s always beneficial to save money and use it to make a downpayment. That way you can borrow less, pay less interest to banks, and lower the cost of your car. Lenders will also appreciate a downpayment made from your side. Lenders will feel more confident that you plan well and can manage your money well, and will not default on repayments.

  • This facility is also available to those borrowers whose home loans accounts have been closed after regular repayment except take-over by other banks.
  • Depending on the age of the used car, it may require regular maintenance from time to time, which can lead to added costs.
  • The UCO Bank vehicle loan aims to ensure that you drive around the city in your vehicle!
  • You would generally apply for a car loan when you are interested in purchased a car.
  • While most people seek satisfaction and safety in a cushy job, some test unfamiliar waters and embrace risk to chart their destinies by themselves.
  • Lenders offer a flexible repayment period generally stretching between 1 and 7 years.

This hypothecation is revoked once the loan has been fully repaid. From one bank to the next, the maximum loan amount that can be approved differs. Banks may provide loan amounts ranging from 80% to 90% of the car’s on-road cost.

Two years NRE a/c statement of the customer and/or resident accounts of spouse/parents (with us/ other Bank) in which remittance is made. Multiple financers providing multiple offers leading to a range of options for the customer. As said, keep your credit score high, normally a credit score higher than 750+ is ideal. You will get you a low-interest rates also the loan will be sanctioned easily. There is NO prepayment penalty if loan adjusted from own verifiable source.

What type of credit is a car loan an example of?

Installment. Installment loans are another type of credit that includes a fixed payment schedule for a specified duration. An example of an installment loan would be a car loan — you are required to pay a set amount of money at a recurring interval (ex. $280 per month) until the loan is paid off in full.

However, many lenders solely work with patrons who have stellar credit score. When you opt for a loan for a commodity like a car, the lenders usually offer you credit insurance. Credit insurance is a type of insurance that will cover the payment of loans and installments. Most banks finance all small and medium-sized cars, sport utility vehicles and multi-utility vehicles . It is, however, a wise move to check the list of cars that can be financed by the lender for the maximum amount offered with fewer charges involved. It means you can pay a part of the principal outstanding to reduce your liability.

Follow the step by step instructions to avail digital loan facility from our bank. 2) Submit your application online via the internet/mobile banking portal of your bank. Although a longer tenure might seem attractive from an EMI standpoint, it will lead to higher interest payments. A small difference in interest rates and other terms can lead to significant differences over time. CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner.

What business loan means?

The business loan meaning is a loan product offered to business owners who have a running company but require external funds for operations. The investment cover expenses such as employee salaries, rent, buying equipment, or expanding the business in other cities.

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