All over the world, there are many car-financing companies. Many non-banking financial companies and banks in India, does work as car-financing companies. In this developing country like India, one can find that new model of cars are launched every day. If one wishes to get his or her old car and buy a new one, the natural truth is that it is so bitter that it will cost great money. However, the non-banking financial companies and banks that act as car-financing companies in India can fulfill your dreams. This indeed is very good news because these car-financing companies provide loans to purchase new as well as old cars. Information in detail about car-financing companies can be found in the internet through a browsing of the car-financing companies in Google. Many benefits like the repayment periods up to 7 years, low processing , no advance EMI needs to be paid with the down payment which effectively increase the amount etc are being offered in most of the nationalized banks n India. The method of interest calculation is the reducing balance method in these car-financing companies which means at the time of repayment, the customer is paying interest that has been calculated on the remaining balance and not that has been there at the starting of the year.
Availability of loans
Loans from these car-financing companies are available up to the range of 2.5 times of your net annual income. In such as case the minimum income cap of any individual should be 75000 INR per annum. The banks that act as car-financing companies are sanctioning loans for new cars and for old cars too. Even if a person does not have an account in these banks (car-financing companies), still they get an opportunity to avail loans from the bank. However, they are supposed to produce all the relevant documents such as identity proof, address proof, or other necessary documents. The UTI banks that act as car-financing companies, is offering loans which cover 85% of the car’s cost in addition to insurance and registration charges. These car-financing companies or the UTI banks have another scheme in which the loan is offered at 20 minutes your monthly net salary. The loan repayment has been done within 0 monthly EMI’s or within a maximum period of 5 years.
13 % interest on a monthly reducing balance basis and repayment period for a maximum of 5 years are the main features of these car-financing companies. The facilities of check off is available in which installments are directly paid by the employer and the full amount of the car is insecure in favor of the bank are the other key feature of car-financing companies. Among the car-financing companies, one of the major private sector banks in India is the ICICI.