Need Cash To Buy New Car? Apply For Personal Loans To Buy A New Car

Now a day, it is easy to apply for personal loans to buy new car; because the process has been so quick and transparent of buying a dream car.  If you are in the market for a major purchase like a buying a new car, then getting a personal loan from top loan providers of India can be the best bet.

Buying a new car through personal loan is one of the most preferred financing option that people choose. With relatively easy paperwork and hassle free loan process, personal loans to buy a car is easy to obtain. Because; these days, bankers/lenders accept the loan application online and usually these application are approved on the spot at the car dealership itself.

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A Brief Of Personal Loans For Buying A New Car

To explain in simple terms, it is an unsecured loan taken by the individuals from private financial companies such as LoanTap, Bajaj Finserv, TATA Capital etc. or from banks such as HDFC, ICICI, SBI, Axis Bank etc. to meet the cash requirement of buying a new car.

Personal loans from these top providers of India are offered on the basis of key criteria such as income source, CIBIL score, past repayment history if you had any, your eligibility and the supporting documents.

The reason of personal loan’s soaring popularity is it doesn’t ask for collaterals or any kind of security to put when you borrow the loan. With easy repayment options (EMI) and affordable rate of interests, the personal loans is widely applied for new and used cars.

When You Apply For Personal Loans To Buy New Car

Buying a new car will drain most of your savings. It is wise decision to apply for personal loans to buy new car because; they are offered at competitive rate of interest. Most importantly the loan is easy on your pocket. Which means you can buy your dream car with through personal loans and repay back in EMIs which comes at relaxed loan tenure.

Like other individuals you too, can apply for personal loans to buy new car. Here is how you do it:

   Check Your Eligibility First

Before you go on to apply for personal loans to buy new car, it is important to know if you are fitting their criteria. Different banks and private lenders have their set eligibility criteria which may differ hence; get to know for which you are applying. Are you fulfilling in terms of source of income they are recommending, documentation, age, repayment capabilities, and most importantly CIBIL score.

   Shortlisting The Bank/ Lender

Financial services as well as banks providing personal loans differs in many ways. While you apply for personal loans to buy new car, you need to see which is the right fit.  Surely; it’s a tough task as you will find majority of them offering competitive rates and attractive special loan discount and offers.

All you need to do is compare loan features; such as loan tenure, rate of interest, processing fees, charge structure, repayment policy, credit score requirement and finally how much loan is disbursed- the final loan amount. With these; you’ll have the clarity of the personal loan you are getting it for your new car.

  What All Documents Are Required

To ensure that your loan application doesn’t get rejected; get all the supporting documents in line when applying for personal loan. The usual loan documents required by the banks and lenders are:

• Photo identification proof
• 2 photographs
• Income proof
• Bank statements
• Address proof

  How Much Loan Amount Can Be Borrowed For Buying A New Car?

It usually depends on your income and varies based on whether you are salaried or self-employed. Usually, the banks restrict the loan amount such that your EMI is not more than 40/50% of your monthly income.

Any existing loans that are going on are also considered when calculating the personal loan amount. For the self employed, the loan value is determined on the basis of the profit earned as per the most recent acknowledged profit/Loss statement, while taking into considerations.

   How Banks/Private Lenders Decides Maximum Loan Amount Disbursement?

There are few factors which determines the maximum loan amount disbursement such as CIBIL score, and present income level. A good  credit score closer to 900 means you have made sure that your repayments of the previous loans and credit card dues are attended on time. Bankers/ lenders feels that you are a safe borrower, leading to a higher loan amount disbursement.

Bottom Line

When it comes to buying a new car, many consumers will opt for a dealer-financed auto loan because it’s quick and convenient. But in some cases it can be more effective to apply for personal loans to buy new car instead. It all comes down to weighing up pros and cons against in light of your individual circumstances.

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