It’s a great time to buy a new car

5 MinsAug 31, 2021

With the Covid-induced lockdowns easing, many of us may be looking forward to going back to schools and offices. Chintan Gandhi and his children are. While the family is used to getting everything from groceries to clothes and movies online, they know they cannot avoid regular travel to school or office. But they feel that it would be safer if they have their car, rather than depend on public transport. Hiring an autorickshaw or a taxi every day, to and fro, is not feasible and may prove costly in the long run. Travelling in one's car also ensures that you have higher control of safety measures. It helps in maintaining social distancing and avoids contact with potential infections. It is also handy in case of a medical emergency.

great time to avail car loan

Today, cars are available for all budgets, with several models to choose from in the Rs. 3-5 lakh bracket. Getting a car loan is very easy right now, and lenders offering them at attractive interest rates.

Benefits of taking a car loan

  • Attractive interest rates: Car loan interest rates are at attractive levels now. By taking a car loan Chintan can buy his family’s dream car without too much pressure on his finances.
  • Get up to 100% funding: Banks like Axis Bank offer up to 100% on-road funding for your car. This means Chintan could get the full amount for the car as a loan without paying anything from his pocket.
  • Pay at your convenience: With new car loan tenures extending for as long as seven years, as in the case of Axis Bank, Chintan can repay at his convenience. This way he can ensure that the EMI is affordable and will not be a burden on his monthly budget.

[Also Read: Tips to Get the Best Car Loan Deal]

How to apply for a car loan

  • Decide your budget: Chintan has to decide a number that he is comfortable spending on a car.
  • Check loan eligibility: Most lender websites have a list of qualifications for availing of loans. (For details on Axis Bank new car loans, click here). Chintan should be between 18-60 years old, have an annual income of at least Rs 3 lakh and have six months’ salary slips that prove it. In addition, he should not have any adverse credit history, he should have resided at his current address for at least 12 months, and the lender should approve the car model he has chosen.
  • Figure out loan amount: If Chintan has chosen a car model and knows the amount of down payment he can afford, he should figure out the loan amount needed and the EMI he is comfortable paying. He can also use the car loan EMI calculator to calculate the loan amount and its interest.
  • Documentation: Provide proof of income, age, address and identity.
  • Apply online: Chintan can even apply for a new car loan online. Depending on his documentation, he could get instant approval. What's more, most banks have tie-ups with one or more car manufacturers and have attractive offers on select models.

Axis Bank new car loans are available at attractive interest rates. It also has many exciting offers, which you can avail of right from your home. Just check on your Axis Bank mobile app or click here.

Disclaimer: The Source, a content creation and curation firm have authored this article. Axis Bank does not influence the views of the author in any way. Axis Bank and The Source 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. Please consult your financial advisor before making any financial decision.