Car Loan is taken by any individual such that they want to make a purchase of new vehicle and have to take up a loan for that purpose since their earning are not that much enough that they could use their whole income in the purchasing the asset. Hence for them they have to compulsorily take up the loan for purchasing up of the vehicle.
Car Loan is a very good idea of purchasing up of car for the families who don’t possess enough finance with them but their dream is to buy up the vehicle in their own name. But the rate of interest charged is higher as compared to other loans but not as high as of the personal loan. Car loan is very much in demand as people want the vehicle in their name and want to enjoy and take the benefits enjoying by driving out their own vehicle.
A car loan is a borrowing instrument that a lender such as a bank provides an individual allowing him/her to purchase a car. Car loans have gained popularity in recent times as instead of being a luxury item or a symbol of status, cars have grown to become an essential commodity for the continuously growing middle class of India. With the increased popularity of car loans, most banks and NBFCs currently offer this type of loan to individuals who have a good credit history. One point to keep in mind regarding a car loan is the fact that this loan invests in a depreciating asset i.e. the asset (car) bought using this loan is in fact going to cost less over time.
It takes 7 working days once documentations are completed
Just as the name suggests, a car loan is a loan granted to an individual interested in buying a car. Therefore a car loan is a secured loan where the car you buy acts as a collateral. Therefore, there is no additional collateral requirement for a car loan. However, you do have to get the RC (registration certificate) of the car endorsed with the bank. This endorsement is cancelled after repayment of the loan is completed.