Definitely, the boom in economy and the resurgence of middle class has led the automobile industry to launch new vehicles every now and then. Due to the increase in purchasing power, most of the people are now buying cars like never before. A major chunk of the borrowers although prefer obtain auto loans because of the benefits such as tax deduction and other factors. However there are certain aspects which must be taken in to account, before availing the loans. All the major banks and financial institutions in India are offering the loans. The loans are usually offered on the basis of the borrower’s income. Usually the amount offered is 3- 4 times that of annual salary of regularly employed applicant.
The loans are similar to secured loans as the concerned lenders would take the car as collateral. This basically acts like an assurance for the lender. But that does not mean that the applicant cannot use the car for personal purpose. The documents of the car will be duly returned when the applicant has repaid the entire borrowed amount. Interests on the loans are offered on the basis of borrowers prevailing circumstances, income and past records. However, if the borrower offers a large amount as down payment, it is assured that the lenders will approve the loans at comparatively low interest rates.
Some necessary documents are required while availing these loans. For instance, it is a must for the borrower to produce documents such as identity proof, residential proof along with income details. A salaried borrower has to submit recent salary slip, form16 and bank statements for the past few months. On the other hand, a self employed person has to provide bank statements for the last 2 years. While availing India auto loans, do not sign away any particular deal. Instead, you should take a proper research and ensure that no hidden charges a re being levied. Keeping your requirements in mind go through the terms and conditions of various banks and financial institutions. You can also use the internet in this regard.