Want to buy a new car? Are you facing any financial difficulties to afford one? Don’t worry, The Clicklends is offering you Car Loans from 9.20% onwards
Do you remember the lifestyle that presided some 30 years before? Cars were an ultimate luxury back then. Even before some 20 years, cars were owned only by the supremely rich people but the scenario has changed a little over the past 10 years. Recently, cars have become a necessity rather than a luxury but the problem with money hasn’t faded over time. Car Loans are the finance which are availed to buy either a new or a used car, which allows the buyer to pay for the car through monthly installments rather than a single payment. The buyer should also pay a part of the price as ‘down payment’, while the rest will be financed by the lender/ any financial institution
Benefits of car loan
Makes it easy to buy a car :
If you ever dream to own a car, for which, your financial status proves to be a hurdle, never let yourself down because now-a-days, finance is not really a hurdle at all. Car loans enable to fulfill your dream of owning a car, despite any financial hurdles. You need not wait for a very long period to buy your dream car as many banks provide almost 100% finance on exshowroom price
Flexibility to choose the tenure :
Tenure refers to the duration for which the loan amount is sanctioned. Car loans usually hold a shorter tenure, usually upto 7 years. 7 years is not a fixed duration, banks offer car loans for different durations too. You have the flexibility to choose from the bundle of tenure offered by the banks, as per your convenience.
Loan for buying used car:
Buying a new car is not the only practice followed in today’s living. Buying second-hand goods, especially cars have proven to be cost-effective and have become a means for many to become car owners at a subsidized rate. Banks offer loans, even for buying used cars. This is one of the best benefits you can receive, though the interest rate for these loans will be higher than the interest rates on new car loans. Even the loan-to-value (LTV) ratio will be lower compared to the new car loan. Despite these differences, one can also find solace in buying a used car which is still efficient.
Interest rate can be negotiated:
Interest rates are usually fixed for any type of loan. Car loans are usually different from the other loans, especially in terms of interest rates. In the case of car loans, interest rates can be negotiated with the lender. If you really have a good credit score with the lender and a good relationship as well, you can, for sure, make a negotiation for your car loan interest rates.
No collateral required:
Usually loans offered from the Clicklends, do not require any collateral and car loans are no exceptions. You don’t have to give any collateral to get your car loan. The vehicle which you buy through the availed car loan will act as the security to the bank for the loan taken, which will be seized and sold, in case of failure of loan repayment within the stipulated time.
Flexibility to choose the payment mode:
Payment mode is one very important decision to make. You could either pay through post-dated cheques or through EMIs (Equated Monthly Installments). In case of EMIs, the respective amount will be deducted from your bank account automatically. This flexibility in choosing your payment option will surely be a stress- reliever to you.
Flexibility to choose the fixed or floating interest rate option:
You can negotiate for the interest rates and apart from that, you could actually choose the type of interest rate, whether to have a fixed or a floating interest rate. Depending upon your interest rate type, your interest rates will differ. Choose wisely, mainly making sure nothing of it exceeds your credibility.
Eligibility Criteria for a Car Loan:
The Eligibility criteria is so very necessary in order to give the lender a rough idea about how much loan amount can be granted to a particular borrower and even the borrower will get to know how much he/she is capable of lending. This Eligibility criteria depends on various aspects which are:
|Age||Min: 18 years
Max: 75 years
|salery||Rs.10,000 per month (minimum)|
|Employment Type Stability||Salaried or Self-employed individual/partnership;
3 yrs. (minimum) total experiebusiness/profession;
2 yrs. (minimum) in currepost/business/profession.
|Type of Car||New or used|
|Residence Area Stability||Urban/Semi-urban/Rural & 1 yr. (minimum) stay at current residence|
Documents required to apply for a car loan:
Processing of a loan requires many documents to be submitted and verified,and, actual proof is more important to grant someone huge sums of money. If you need to apply for a car loan, please make sure you submit all the following requirements.
1. Proof of age
2. Identification proof
3. Application form
4. Passport size photograph
5. Proof of residence
6. Income proof
7. Bank statement
8. Signature verification proof
9. Pro-forma Invoice or Rate List
A bank needs all these documents is to access your financial position, your credibility and your ability to repay the loan. The credit score you have with the lender/ the bank will also affect your access to different types of loans, which will be determined through these documents, which speak a thousand words of your history and being. Always cross-check your documents. The lenders will also cross-check your information for verification.
There are few documents which will be dealt with after granting a loan and they are:
1. Loan Agreement duly signed along with the Regional Transport Office set
2. Standing Instruction (SI) Request / ECS Form / Post-dated Cheques (PDCs), Security Cheques required for SI and ECS
3. Margin money receipt
TYPES OF CAR LOANS:
Car loans are not a compilation of a single type but a collection of 3 different types of loans, which nevertheless possess similar qualities.
New Car Loan:
New car loan is a type of loan which is used directly to purchase a brand-new car from the showroom. These are the widely used type of car loans for which banks offers interest rates and a loan tenure of 1 to 7 years. Under this category of loans, there are no limitations this loan is applicable for almost all kinds and brands of cars in the market. All you need to do is to find your favorite car, approach the Clicklends, for an efficient and affordable financial aid, and the car’s yours.
Used Car Loan:
Used car loans, as the name suggests, are used to buy second-hand cars / used cars just like any new car in the market. Banks and other financial institutions offer such loans inorder to promote all levels of people to own a car, as the cost of a used car is quite cheaper than the cost of a fresh new car. This loan is applicable only when the used car for purchase is less than 5 years old or does not exceed more than 10 years at the time of loan maturity. Apart from this one obligation, there aren’t much struggles to opt this loan.
Loan Against Car:
Cars are not only a means of luxury or just a means of transportation but also a source of income/ fund. ‘Loan against Car’, this type of loan offers a financial aid for those who are in dire need for funds, by making his/her old car as a collateral for which the bank or any financial institution will grant a loan amount. Even for these loans, interest rates will be applied and there will be a loan tenure, mostly a shorter one. This method will be very helpful when one holds a bad credit score with the bank/ the lender.
How To Apply For A Car Loan at ClickLends?
As stated before, one of our key features is the fact that we possess a simple and quick online application method, unlike the old method which involved more procedures.
Applying for an car loan involves three simple steps:
Step-1: Filling of the quick form:
A quick form is the most significant prospect, for, it is required to decide who is eligible for a loan and who is not, depending upon one’s credibility and stability and also for one’s own personal information, proof and verification of information provided. In the first step, the customer needs to fill in the quick form which includes filling the following details:
- Full Name (as per PAN Card)
- Date of Birth
- Email Address
- Contact Number
- Monthly Income
- Expected Loan Amount
- Work Experience
- Company Name
- Pan Number
- Pin code
Step-2: Process of Verification and Documentation:
After the Step-1 is completed, you shall receive a call from our customer care regarding your document verification and collection of the mentioned documents (if not yet supplied). Initially, after you finish giving your personal information, our customer care will reach you through a call and willrequest you to present certain documents such as your Pan card, your Salary receipt and so on in order to verify the given details in the quick form. The next thing which will happen is the process of verification, where the prescribed details will be cross-checked for one last time before initiating the loan process.
Step-3: Processing of Loan:
Once the quick form is filled with the necessary details and once the verification process gets over, you’ll reach the last step to get your loan amount credited to your bank account. Once the verification is done, the loan process will start and within 3 days the loan will be proceed to the respective borrower and his bank account will be credited with the loan amount. Just 3 days, and the entire loan amount will become yours for use.