After the credit boom of the 2000s, many lenders stopped offering low-interest car loans. But now is a great time to get a car loan again! If you are a resident of Mumbai and looking for a low-interest car loan, then you’re at the right place. Read on to know everything about low interest car loan in Mumbai!
What Is A Low-Interest Car Loan?
Low-interest car loans are loans that offer low or no interest. They are typically used to finance the purchase of a new car, or used car. While there are many different types of car loan interest rates, low-interest car loans are typically offered by credit unions with a special type of member that is eligible for these special rates. Credit unions are often community-based organizations, owned by their members.
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Why Are Low Interest Car Loans So Difficult To Find?
Lenders’ main motivation for providing low interest car loans has disappeared. In the years following the Great Recession, nearly every lender slashed their interest rates and fees to stay in business. This was because they realized that there was too much risk in lending money. In fact, rates and fees in the car loan industry have been on a steady decline since the 1980s, falling by nearly 50% since 2009.
Is It Possible To Get A Low Interest Car Loan In Mumbai?
Yes! And this is exactly what you can do. Many car dealerships do not offer low interest car loans, but finance companies and credit unions often do. You can also apply for a low interest car loan from a bank or credit union in Mumbai if you have a good credit score. You can also apply for a low interest loan from a high-interest auto loan by contacting the loan originator or owner of the dealership that you plan to buy your car from.
This is the most direct way to get a low interest car loan, but it is also the most hassle-filled and difficult way. You can also get a low interest car loan from a peer-to-peer lending platform, but it is a risky proposition. If you get a low interest loan, you are usually required to pay a high interest rate on your loan. So it may not be a good idea to just get a low interest loan.
Get The Best Car Loan You Could Ask For
If you are looking for the best low interest car loan in Mumbai, you have come to the right place. In this guide, we will cover everything you need to know about low-interest car loans. From how to find a low interest car loan, to how to get approved, to how to make the most of your low interest car loan. So keep reading, and let us help you get the best low interest car loan you could ask for!
Read The Fine Print!
If you are looking for the best low interest car loan, you have to read the fine print. This is one of the most important things that you need to do before applying for any type of loan. The fine print is what allows lenders to get away with charging you exorbitant interest rates. So make sure you read the fine print thoroughly and ask lots of questions.
Interest Rates Offered By Top Lenders In Mumbai
| Bank | Interest rates | Minimum income | Processing fee |
| State Bank of India | 9.30% to 12.45% | Nil | Rs.2.5 lakh p.a. to Rs.4 lakh p.a. |
| Axis Bank | 9.25% onwards | Rs.3,500 to Rs.5,500 | Rs.1.8 lakh p.a. to Rs.2.4 lakh p.a. |
| ICICI Bank | 9.30% to 12.85% | Rs.3,500 to Rs.8,500 | – |
| Canara Bank | 8.95% to 9.60% | 0.25% of the loan amount | Rs.3 lakh p.a. |
| HDFC Bank | 9.75% to 10.60% | 0.4% of the loan amount | Rs.3 lakh p.a. |
| IndusInd Bank | 10.65% onwards | 0.5% of the loan amount | Rs.2 lakh to Rs.2.5 lakh p.a. |
| United Bank of India | 9.15% onwards | 0.59% of the sanctioned loan amount | Rs.25,000 per month |
| Punjab National Bank | 9.05% onwards | Rs.1,000 to Rs.1,500 | Rs.20,000 per month |
| Federal Bank | 9.20% onwards | N/A | Rs.20,000 per month |
| Bank of Baroda | 1-year MCLR + Strategic premium + 0.25% p.a. | Rs.1,000 to Rs.2,500 + GST | – |
Requirements For Applying For A Car Loan In Mumbai
| Criteria | Salaried individuals | Self-employed individuals |
| Age | Minimum age: 21 years
Maximum age: Between 60 years and 70 years at the time of loan maturity |
Minimum age: Between 18 years and 21 years
Maximum age: Between 65 years and 75 years at the time of loan maturity |
| Income | Between 2.5 lakh p.a. and Rs.3 lakh p.a. | Between Rs.1.8 lakh p.a. and Rs.3 lakh p.a. |
| Income Status | Should have been continuously employed for 2 years and at least 1 year with the current employer. | Should have been in the same line of business for at least 2 years. |
Also Read: PAN Card Fraud Alert! Check If Someone Has Taken Loan Using Your PAN Number
Summary
After the credit boom of the 2000s, many lenders stopped offering low-interest car loans. But now is a great time to get a car loan again in Mumbai! Low-interest car loans are still available from credit unions, but you may need to be a member of their club. Now you have the idea about the status of car loan in Mumbai , now it should be easier for you to get one.
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