Frequently Asked Questions
Get answers of all your queries, related to Auto Loans at Creditnation.
How to get a car loan?
You can compare and apply for best offer online in no time. You will be approached by the CreditNation support team later to process the loan as per your eligibility.
How much loan will I be eligible for?
Most of the financial institutions offer up to 90% of the car value as auto loan. However the final value might vary with lender. They check various factors such as vehicle cost, type & value in the second hand market while deciding the amount of loan to offer. Some banks might give 100% loan of the car value.
What are the documents required and what is the processing time?
Like any other Financial product, you would require to submit identity, address and income proofs along with the loan application. After submitting the documents, it takes about 3-7 days for processing the loan and getting it sanctioned.
Can interest rates be negotiated?
Yes, interest rates for car loans can be negotiated. If you are loyal customer to the bank and have made regular payments for previous loan(s), Bank might consider and revise the existing interest rate for you.
Is there an option in choosing type of interest rate?
There are two types of interest rates in the market- fixed and floating just like a home loan. You can choose the bank that best suits your need.
What is the tenure for car loan?
Typical tenures for car loans range from 1 year to 5 years. You can opt for a lower tenure if you can service a higher EMI or a higher tenure loan if you cannot afford high EMI. Some lenders also offer loan tenure up to 7 years.
Will my loan application be rejected?
There are the chances of your loan application getting rejected if you have a bad credit score. This will happen if you applied for loans/credit cards many times, defaulted on EMI payments, etc. If you applied first time for loan application, factors such as income, organization, salary etc. will be considered.
How to pay EMIs? What about pre-payment?
Borrower can pay EMIs either through post-dated cheques or request bank to debit account every month through ECS (electronic clearing system) option. In car loan product you are allowed to pre-pay the entire loan amount after 6 months to 1 year. However, you can check with your bank upon this rule. If you pre-pay before the above mentioned period, there will be a penalty of 2%-4% on the outstanding amount.
What if I don't pay EMIs on time?
You need to pay EMI regularly on time. Most of the banks allow customers to miss 1 or 2 payments. However, you may be treated as a defaulter beyond 2 payments. Bank would have authority to seize your vehicle. In case you didn’t pay your EMI, your credit score will also suffer and decreases your chances of loan eligibility in the future.
Can I get loan to purchase a used car?
Yes, Banks and NBFCs offer loans to purchase second hand cars. However, rate of interest would be slightly higher for such vehicles. Other factors such as repayment capacity, car model, car value, etc. would be considered as considered with new vehicle.