Being an essential part of everyone’s lifestyle, vehicles take comfort to the next level. For some, it is a source of luxury; while, others take their vehicle as a part of commercial standing. No matter the type of usage is defined; vehicles are necessary band of life. With an upsurge in the process of buying vehicles, financial institutions are coming forward with newer ways of simplifying procedures to buy vehicles. Terming them as vehicle loans, banks have set standards as per requirements and ensure that the customers abide by them to avoid any issues. These types of loans are becoming highly significant for people, who have been waiting, long to buy their dream car or even the bike.
Everyone wants to buy their favourite car and be the envy of others. But, it is the financial crunches that restrict people in achieving their goals. Such issues are a passé and banks or financial institutions are coming up with beneficial schemes for prospective vehicle owners. With car loans becoming prominent, it is essential to know that they can be availed over new as well as used cars.
• Definitely, the banks offering loans on new cars are required to keep some kind of collateral as security. This is in assurance to the fact that the person becoming default to pay back loan will not land bank in problem. They will recover the amount by selling the collateral.
• When it comes to the matter of amount despatched as a part of the loan, the banks or other financial companies provide around 80 percent of the total amount. The prospective buyers are required to pay 20 percent of the car value as down payment and rest of the amount is paid by bank to the car manufacturing company.
• In taking a new car loan, a person has to undergo specified documentation process that calls for them to attach their identity proof with the loan application. First of all, having KYC (Know Your Customer) documents like photograph, identity proof, address proof and age proof documents are needed. Further to this, 6 months bank statement, latest salary slip, form 16, income tax return proof, employment stability proof letter from authorities or from the directors of the company are mandatory to avail loan. At times they may be asked to produce original documents for the purpose of confirmation too.
• In the used car loans, the bank institutions make sure that the car is kept as collateral security to avail loan amount. Indeed, the bank won’t take the car away. It is just the RC of the car that is kept under the custody of bank and a duplicate RC is issued to the person. The loan amount is given at a rate of 60 to 70 percent of the actual value of the car. And this is payable on equated monthly instalments.
• When it comes to the matter of availing loan, the applicator is required to fill form and attach essential documents. These may include photograph, identity proof, address proof, age proof documents, 6 months bank statement, latest salary slip, form 16, income tax return proof and the employment stability proof. After the documents are submitted, enquiry takes place. And finally, the amount is transferred to the applicant’s account.
Bike Vehicle Loans:
Bike is the most fuel efficient vehicle that one can have and one of the most loved vehicle by men especially youngsters. Moreover, it is advantageous in the fact that the rider does not have to get stuck in huge traffic jams. These factors have added to the growth of bike sales. At times, it may happen that men are not able to buy the bike that has been in their dreams often. The reason behind it is the price tag associated with it. In this regard, approaching banks and financial institutions is the right choice as people get maximum amount as loan and are able to buy best bike.
• New bike loans are offered by the banks on the basis of salary earned by the individual. In fact, people are able to get the maximum amount of the loan from banks by submitting requisite documents. Right from the last 3 months salary slip to form 16, 6 month bank statement, letter of authorization, address proof, identity proof and even employment stability proof with the photographs.
Further to the submission of form with documents, enquiry is done in regard to the proof of documentation. And then, the amount is transferred in the account.
• The used bike loans are required for the purpose of acquiring some cash to manage other expenses. Similar to that of used car loan, the used bike loans can be availed as per the existing value of the bike. In this regard the bank would take RC of the person and issue them the duplicate one. So, one should make it sure that their bike is in excellent condition. By submitting above-mentioned documents with that of form, the person will be able to get the loan from bank without much difficulty.
Vehicle loans are earning quick popularity because of its features and easy payment options the companies or banks provide customers with. They are the ideal choice for people, who refrain themelves from buying their dream vehicle because of cash shortage. Vehicle loans are gaining momentum in today's world as they can be taken easily as compared to the earlier forms of loans and also paid back in easy monthly instalments/EMI.
When it comes to taking loans, it is advisable to the people to check the processing requirements and other fees associated with them thoroughly. Along with this, checking the interest rates and the equated monthly instalment are also essential after all, the loan buyer should be aware of the fact as to how much amount has to be taken. In fact, there is always a transparency between loan provider and the applicant to avoid further confusions.