Car loan. What you should know

Car loans and is it important to go for a car loan

Having a home and a car is one of the glorious milestones of life. Thanks to the advent of various financial institutions and banking systems which offer car loans, it has become very easy for people to fulfil their dreams of owning a car.  We all want that shiny little set of wheels standing in the parking place of our house. Well, with the help of car loans you can easily fulfil your dreams now.

All the private and public sector financial institutions in India offer car loan. Similar to another loan, you need to submit documents like ID proof, income proof, and credit history to qualify the bank’s eligibility criteria and avail the car loan. Aadhar card is mandatory.

Why Choose a Car Loan?

Some people dread loan. They don’t want to get trapped in the web of EMIs but, banks and financial institutions have come up with customer-friendly policies which make availing car loan stress and hassle-free process.

If you go ahead with car loans, you get two benefits :

  • We all know that cars come with a hefty cost, car loans have emerged as an easy way to buy a car.
  • A massive purchase like buying a car with cash can make you come in the radar of Income Tax department. Furthermore, you might lose an opportunity to build up credit history which may later be used to avail home loan.

Car Loans – Features and Benefits

Here are few other sets of benefits which car loan has to offer and make you choose it.

  • With the help of car loan, you can buy a better car than the one which fits your budget.
  • You can quickly buy the car with the help of car loan, which otherwise would be difficult if you want to buy it by arranging the money.
  • You can manage the cost of purchase by distributing it across a longer duration regarding EMI. This makes it easy for you to pay back for the loan without affecting your pocket too much.
  • Car loans in India are mostly secured which means the car serves as a security for the loan. Thus, posing a little financial risk to you.
  • Availing car loan is simple.
  • Car loans are often based on fixed interest rate when it comes to EMIs. It means that you have a fixed amount that has to be given every month. It ensures that you can plan your monthly budget.
  • The repayment tenure of car loan ranges from 5 years to 10 years.

Thus, if you are willing to buy a car don’t delay the decision. Contact your bank, and you can open the gateway to bring in your dream car.

Booking a cab or Buying a car with car loan.

You can book a cab whenever you want to wherever you want. If you are going to office in a cab and weekend getaways are always on a hired car, calculate the amount you spend every month. Instead buy a car where you can afford for the EMI. Car loans come at a very low interest rates. Instead of having the head ache of booking a cab every now and then, buy your favourite car by going for a car loan at a lowest interest rates.

What does? know to offer loan at the lower interest rates from many lenders. Car loan is important when you go for buying your favourite car. We understand your need. Hence, we keep it simple for you by letting you know the lower interest rates, getting the loan disbursed from your favourite lender. All you need to do is give a missed call to 040-71011991. We will follow the rest.

Car Loan Interest Rates

Well, buying a shiny and glamorous four-wheeler is the dream of many individuals. But, in a nation where most of the people in middle class and have restricted source of income, spending the hefty amount in buying a car can be a costly affair. The time has changed, we are now living in a world where banks and financial institutions are offering car loans and car loan interest rates at affordable EMIs.

Car loans are not only easy to avail but also a great way to buy a car. However, you must know that car loans interest rates may vary from one bank to another. Apart from this, you must also qualify the eligibility criteria mentioned by the bank to avail car loan.

Here is a quick view of the  car loan interest rates offered by different banks and financial institutions :

Bank Name Interest rate Processing Fees Loan Amount Loan Tenure
HDFC Fixed Interest Rate- 8.40% – 10.35% Up to ₹ 4720 (it’s a one time fee) Minimum ₹ 1 Lac 1 -7 years
Axis Bank Fixed Interest Rate- 8.60% – 11.50% Up to ₹ 5000 Minimum ₹ 1 Lac
  1. 7 years
ICICI Fixed Interest Rate- 8.40% – 13.25% Up to ₹ 5000 (its one time fee) Minimum ₹ 1 lac 1-7 years
Dena Floating Interest Rate-9.15% ₹575 (it’s a one time fee) Minimum ₹ 1 lac 1-7 years
Federal Bank Fixed Interest Rate-9.75% ₹ 1500-  ₹ 2500 (it’s a one time fee) 1-5 years
Bank of India Floating interest rate- 9.25% ₹ 500+ ST ₹ 50 lac – ₹ 1 cr 7 years
Canara Bank Floating Interest Rate- 8.60% – 9.25% ₹ 1000 – ₹ 5000 7 years
Bank of Maharashtra Fixed Interest Rate- 8.95% 7 years
Indian Bank Fixed Interest Rate- 9.95% 0.229% (max. ₹ 10,191/-) (It’s a one time fee) Maximum ₹ 2 crore 7 years
Central Bank of India Floating Interest Rate- 8.70% Maximum ₹ 75 lac Seven years
IDBI Bank Fixed Interest Rate- 9.10% 0 7 years
L&T Finance Limited Fixed Interest Rate- 16% – 17% 2% Minimum ₹ 1 lac 7 years
Reliance Commercial Finance Fixed Interest Rate- 16% 1.25% (Min. ₹ 5,175)( It’s a one time fee) ₹ 50K – ₹ 15L 1-4 years
Yes Bank Fixed Interest Rate- 10.25% – 12.25% ₹ 5,000 to ₹ 10,000 (It’s a One time fee) Minimum 1 lac 1-7 years
State Bank of India Floating Interest Rate- 9.05% ₹0 7 years

What Loanyantra can do for a lower car loan interest rates :, known for the quickest disbursal and fastest process also helps you get loans from your favourite bank at lower interest rates. If you have a home loan, you can easily get a car loan from the same lender and at a lower interest rate. Get more tips and easiest ways from Also avail cash back offers on the car loan interest rates.

Which is the best way to repay the housing loan faster?

Pre-Payment is not the only way to close your loan faster. To close the loans faster we can follow the 3 different methods.

I will be giving you a detail advantage of each of the method.

  1. Increase your EMI
  2. Make a part-payments
  3. Loan as OD account product
  4. Monitor you loans and correct to lower rates when ever possible.

Let me explain in detail of each of the method

  1. Increase Your EMI :

This option to be used when you have more monthly savings and want to be debt free faster. Very important here is more monthly savings. Keep the sufficient buffer from your salary for living expenses and additional 10% as the buffer so that you don’t by increasing the EMI later day you don’t have tough time.

Increasing the EMI is much better option if you have steady flow of income and if you are planning to save some money and make a part-payment, then mathematically its better to increase the EMI. For example if you have to increase your EMI by Rs 5000 or saving Rs 5000 every month and after 12 months you make a saving of Rs 60,000/- and make a part-payment. Option 1 is better as it would contribute towards principle every month compare to after 1-year. You might be saving at-least extra Rs 2000 more.

One important thing to note is , most of the banks allow you to increase your EMI but very few allow you to decrease the EMI amount. So think before you do.

2. Make a Part-Payment :

This option to used when you have a lump sum amount received in the form on Bonus or when you have sold something and received the amount. Its said to keep things simple and stupid always clear your loans when ever you get a lump sum amounts.

One important thing to note is , each bank follows specific rule while receiving the part-payment. In case if you are walking to the branch mostly minimum part-payment should be 1 month EMI. If you are planning to pay via online it might be minimum 3-months EMI. Note each bank has its own policy, so please check.

3. Loan as OD account product

This option can be used if you have availed a special loan product which provides OD facility. Let me explain what is OD Facility for the Loan. If you have availed a 50 Lac loan and say you have got 10 lac as bonus. Now if you transfer the 10 Lac to your Loan OD Account then Interest would be charged for only 40 Lac amount. Now after a 1-year, if you like to withdraw the 10 lac, then you can withdraw the amount as its parked. Then from that day what ever is the principle left, bank will be charging interest on the pending amount. What ever interest you have earned on 10 lac will be adjusted toward the principle. This allows to close the loan faster.

All banks don’t provide this products. Banks like Bank of Baroda, SBI , Standard Charted & IDBI have this option. These days banks are charging 0.10% to 0.20% more for this product. So avail them only if you are receiving a lump sum amount and want to use it later day or else make a part-payments to close the loan faster

4. Monitor you loans and correct to lower rates when ever possible.

This option is least used but most powerful one with very little payment. When ever rates fluctuate one need to compare how his/her interest rate compare to ongoing market rate. In case if you are paying higher rate then ongoing we need to check are you going to really pay higher next change or not before correcting.

Interest rate has two components,

Interest Rate = MCLR(Base Rate) + Margins

When you avail your loan in variable rate, the margin gets fixed. So say you availed a loan at 8.50% where in MCLR is 8.00% and Margin is 0.50%

Interest rate = 8.50% = 8.00% + 0.50%

Next change if MCLR(Base rate) changes to 9.00% then your rate would be 9.50%

if it become if MCLR(Base rate) changes to 7.00% then your rate would be 7.50%

Now suppose, if you are paying 9.50% at a given time and in the market if the new customer is getting at 9.25% then we have to check why is he paying 9.25%

There can be 2 cases .

  1. He is paying lower margin then you. Say MCLR(Base Rate) is at 9.00% and his Margins are only 0.25% then its a time to correct your margins from 0.50% to 0.25%
  2. He is paying higher margin then you. Yes its possible if the MCLR(Base Rate ) is at 8.50% and Margins are at 0.75% then he would still pay 9.25% 0.25% less than you for 1-year. But later after 1-year if the MCLR(Base Rate) changes to 10% then you would be paying 10.50% where as this person is going to pay 10.75%.

Note : Lower doesn’t mean lower always. It can be only for a short time. Loans are normally tend to be longer specifically Home Loans. So Manage them well. We help you managing all this to close your loans faster for more help check Manager my Loan

We are specialised in this process. Avail all services at free of cost.

Indiabulls dhani personal loan

Personal loans exclusively from Indiabulls dhani personal loan features quick, easy and fast personal loans.

After five years of study, it is stated that the search is majorly from mobiles than from PCs and laptops. So, Indiabulls came up with an innovative personal loan feature known as Indiabulls dhani personal loan.

What is Indiabulls dhani personal loan?

To make you reach your financial needs with much ease, Indiabulls introduced first of its kind, loans from phone, called Indiabulls dhani personal loan.

Do you have an Aadhar card? If yes, then the personal loan is sanctioned and disbursed through your phone to your account.

Never miss any of your needs, any of those pending vacation, any of those dream aims. Celebrate your life with this new feature in your phone. Fulfil every dream by attending to it financially within minutes.

How does Indiabulls dhani personal loan work?

It works in three steps.

  1. Download the app in your phone from playstore or app store.
  2. Enter your loan amount, aadhar number.
  3. Get money in your account instantly.

Indiabulls dhani personal loan – features and benefits

  • Use your smart phone, know your aadhar number. That’s all you need to know to get maximum Rs. 15 lakhs amount in your account as personal loan.
  • Never leave your dream unfulfilled – As the process is so easy, it just takes seconds to get your dream true.
  • The lean interface leaves the user with quickest experience with fastest loan disbursement.
  • No need to apply your documents. Just enter your aadhar number and get the loan amount disbursed in your account.

How Loanyantra helps

Personal loans through Loanyantra is the best way out there in the market. Know every detail about every product, every feature about each loan. Loanyantra is known for its customised service with happy feedback. Manage your loan through our dedicated customer relationship manager. Receive market updates and interest rate changes as and when there is a change. All you need to do is just a missed call to 040-71011991.


SBI increases lending rates

The State Bank of India (SBI), India’s largest PSU bank, on Thursday, raised lending rates from 7.95 percent to 8.15 percent. SBI increases lending rates for the first time since April 2016. SBI is the first one to implement the MCLR based calculation for loan interest rates when MCLR is introduced an year ago.

There is no change in RBI policies since two quarters. But, it is observed that SBI increases lending rates. Liquidity tightening, rise in bond yield, credit demand pick up and other profitability issues are pushing the banks to up the interest rates

Just a day after SBI increases interest rates on fixed deposits, SBI increases lending rates. SBI term deposits for 7 to 45 days will earn an annual interest rate of 5.75 per cent, up from 5.25 per cent earlier. For one year deposits, SBI customers will now earn 6.40 per cent from 6.25 per cent earlier, while those deposits maturing between two years and 10 years will earn 6.50 per cent, compared with 6 per cent earlier. For senior citizens, the revised interest rates are 7 per cent on their deposits, up from earlier 6.50 per cent.

Another state-run bank PNB also raised its lending rate, effective March 1, 2018. PNB raised its one-year MCLR rate to 8.30 per cent from 8.15 per cent.

SBI increases lending rates
SBI increases lending rates – EMIs to go up

Many banks have been increasing their deposit and lending rates since the last quarter. While lending rates have been jacked up on an average of 5-10 bps by private sector lenders like HDFC Bank, Axis Bank, Kotak Mahindra Bank and Yes Bank since January, almost all the state-run lenders have been increasing their bulk deposit rates in the range of 15 bps to 125 bps.

SBI’s new marginal cost of funds-based lending rates with effect from March 1, 2018, as shared by the bank on its website –

Tenor Existing MCLR (In %) Revised MCLR (In %)
Overnight 7.7 7.8
One month 7.8 7.8
Three months 7.85 7.85
Six months 7.9 8
One year 7.95 8.15
Two years 8.05 8.25
Three years 8.1 8.35

What loanyantra does for you while SBI increases lending rates – 

Get the loan from best of banks. Know every bank’s lending rates and choose your favourite one. Be the first one to know about every lender in the banking sector. Our dedicated Customer Relationship Manager will help you through every step while you choose home loan for your dream home.

How to Buy a Business With Poor Credit-Business Loan

Getting a business loan with bad credit to buy a business is challenging and requires the business to have enough assets to meet the lender needs.

Your Credit Profile
Before you jump into applying for loans to buy a business, examine your own credit. You may assume you have bad credit, but it might not be as bad as you think. Take the opportunity to clean up any errors or pay down other debts to improve your credit profile.

Personal credit reports are available through any of the three reporting agencies: Experian, Equifax and TransUnion. You can also check with an existing bank or credit card company to see if it offers free credit reports. Review the report for any errors. Contact reporting companies about errors with proof of payment, such as a receipt for having paid a bill on time.

If there isn’t much you can change in the report, prepare to explain negative issues on the report, why there was a problem and what you have done to rectify it. If you were ill and out of work for a period of time and were late on payments, an explanation might help during the loan underwriting process.

The Business Credit Profile
Gather all the financial information about the company you are purchasing. An owner who is reluctant to provide information may be hiding something. Obtain bank records, merchant services, account transactions, inventory numbers, vendor sheets and tax returns. Look back at least two years, longer if possible.
Request budget items such as payroll and lease information. Gather any existing debt owed on the business including open lines of credit. You need to know what the business pulls in and what its expenses and liabilities are.
Write a business plan detailing the successful history of the business and project the growth out for the next five to seven years. The business plan helps lenders get a real picture of what the loan is used for. Most business loans are unsecured, meaning there is no collateral. All of these records help you and the lender see if there is an asset to tie the loan to – perhaps real property, inventory or merchant receipts.

business loan with bad credit
Business loan with bad credit

Applying for Credit
Whether you are starting a new business or buying an existing business, make an appointment to review the entire plan with a Small Business Administration counsellor. This person may be able to improve the plan so it better suits what a lender seeks. The counsellor also has relationships with lenders who specifically provide SBA loans.
Whether you go through the SBA or go directly to a bank or credit union, make your package as professional as possible and look like a business owner when you meet with lenders. While you are a customer, lenders view their role more as investors and want to work with professionals. Complete the application and present the entire package as supporting documentation.

Alternative Ideas
If you are denied a loan, ask the lender about having a credit partner. A credit partner is a co-signer to the loan, using their positive credit and maybe industry experience as a mentor to the company. You will probably need to give up a percentage of ownership to get a credit partner, but this might be the only way to establish the credit to buy the business. If you still can’t get a loan, look to private investors within your network or microlenders involved with local economic development agencies in your area.

What Loanyantra can do for your business loan?

Loan in five minutes. Get to know different bankers, different interest rates. Get a call from them and get customized quotes. Explain your business details completely for business loan. Get credit report and get an analysis done and know your business’s eligibility.