Just give a call to any of the Banks and the auto loan representative will come running to your home and do all the needful for you. What you need to provide him is your latest salary slip or offer letter and copies of some other formal documents – that’s it. The process is so smooth and easy.
However, what is it that worries the auto loan or car loan borrowers – it’s the interest rate charged to them. In last few months, we have seen a huge fluctuations in the interest rates. The interest rates in India are going up, causing a problem for loan borrowers. But fortunately, there is some respite for loan borrowers – those borrowers who have a good credit profile.
It’s no longer true that banks (especially private banks) treat one and every customer in the same way. The same applies to the interest rate that is charged to the customers – it varies from bank to bank and within the same bank it varies from customer to customer, depending upon their credit profile.
Apart from that, the banks or financial companies also decide the auto loan interest rate based upon your salary, financial situation (cash-inflow and expenses), residential status, residential locality, previous and existing loans and their repayment, etc.
For example, ICICI bank car loan or ICICI Bank auto loan has the biggest difference in terms of loans offered for two wheeler purchase. They even put the interest rates higher in branches where there have been more defaulters in the past.
Other loan providers like Fullertron also decide loan rate based upon the fact that whether your are married, staying alone or with family, employment history, etc.
The case of two wheeler loans is unique. Big government banks like PNB, SBI, etc. are not very aggressive when offering two wheeler loans. The reason being that two wheelers are usually purchased on loan by people from lower income groups and hence the default rate is high. Secondly, the amount of loan for two wheeler is less, hence, banks cannot earn good profit on loan repayment.
On the other hands, almost all the banks are quite aggressively marketing their car loan or 4 wheeler auto loan campaigns, including SBI, PNB, ICICI, HDFC, etc. The reason being that car loans require considerably big amount, and people from usually better income groups and a middle to high profile candidates opt for car loans.
All in all, it is important to maintain a good credit profile.
| The CBI or Credit Bureau of India, is collecting data from all the banks in India. So if you default on a loan taken from one bank, it will not be easy for you to get another loan from other bank as the checks are now in place. | Table of Contents |
No comments:
Post a Comment