Apply For Car Loan with Maximum Tenure

Posted on Sunday, December 24th, 2023 | By IndusInd Bank

For many, owning a car represents not just convenience but a tangible milestone in their lives.Car loans allow individuals to own their dream car, without having to wait for years to save enough money to purchase one.

The best part is that it is possible to apply for a car loan online with flexible repayment tenures of up to 5 years. Financial institutions today have also streamlined the car loan application process, making it incredibly user-friendly. You can easily apply for a car loan online in just a few clicks.

This article will cover eligibility criteria, required documents, and the step-by-step application process to secure a car loan online. But first, let us look at the distinct features of a new car loan online.

Benefits of a Car Loan

A car loan is the first step towards making your dream a reality. Online car loans bring the following advantages to the forefront.

1. Flexible Repayment Tenures

Car loans offer long and flexible repayment tenures of 1-5 years, sometimes even extendable to 7 years. This extended period allows for easy loan repayment, reducing financial stress for the borrower.

2. Competitive Interest Rates

Car loans today come with attractive interest rates. Alongside this, borrowers can choose pocket-friendly EMI options, making repayment more manageable.

3. High Loan Value

Customers can obtain new car loans online for up to 100% of the car’s value. This eliminates the need for a significant upfront payment, making car ownership more accessible.

4. Hassle-free Application Process

Applying for a new car loan online is a hassle-free and straightforward process. Meeting essential eligibility criteria, and submitting minimal documentation streamlines the application process, saving you time and effort.

Eligibility Criteria for a Car Loan

Before applying for a new car loan online, applicants must check the eligibility criteria needed to apply for a car loan online. These include :

1. Salaried applicants must be between 23 and 60 years of age, and self-employed individuals must be between 23 and 65 years of age.

2. Salaried individuals’ minimum annual income should be INR 2.5 lakhs, while for self-employed individuals, it must be INR 3 lakhs.

3. Salaried individuals require a minimum of three years of employment stability, with at least one year in the current job. For self-employed individuals, three years of business stability is mandatory

4. For residential stability, the borrower should have lived in the same city for two years, and in the current residence for at least one year. No stability criterion is required in the case of one’s own house.

Documents Required for a Car Loan

As a borrower applying for a new car loan online, you must provide some documentation:

1. Valid identity proof, such as Aadhar and PAN card.

2. Valid income proof:

–  Latest Form 16/Income Tax Returns.

–  Last three months’ salary slips.

3. Recent three months’ bank statements.

4. If income proof is unavailable for self-employed individuals, proof of owned house is required.

5. Self-employed individuals must also submit a business incorporation certificate/ business continuity proof for last 3 years, and latest 2 years’ Income Tax Returns with IT computations

For self-employed individuals – commercial use – FTU, eligibility criteria and document requirements will differ.

How to Apply for a Car Loan Online?

Applying for anew car loan online is a streamlined process with most lenders. Here is a breakdown of the steps involved in obtaining a car loan online:

Step 1: Start by visiting the bank’s official website.

Step 2: Fill in the details like name, mobile number, PAN, and pin code.

Step 3: After completing the details, submit your application online.

After submission, the bank will promptly contact you regarding your car loan application.

Parting Thoughts

With financial institutions offering flexible and digital processes, it is now easier than ever to apply for a car loan online. Moreover, understanding the eligibility criteria, required documents, and the application process increases your chances of swiftly securing online approval for your car loan.

So, do not let financial constraints hold you back. Choose a car loan that suits your budget and tenure preferences, and drive home your favourite set of wheels.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.