Car loans for the salaried

Car loan options are available in plenty for a salaried person with varying tenures, rates of interest and repayment options. With more and more people buying a car, it is becoming easy for salaried employees to get a loan, to the extent that pre-approved customers can even get 100 per cent financing for their vehicle. Loans are generally given on the ex-showroom price of the vehicle and don’t include the registration cost, insurance expenses and the likes.

Firstly, the applicant must be at least 21years of age to secure a loan and not more than 58 years at the time of loan maturity to apply for a car loan and must have a minimum annual income of Rs 1 lakh. Secondly, the applicant must be employed in the current organisation for more than a year and should have proof of minimum two years of employment. Needless to say, these prerequisites may vary according to the policies of the bank as do the tenure of the loan and the rate of interest. Banks provide loans at cheaper interest rates if you have an account with them, so check with your bank first. Some corporate companies also have special loan schemes for their employees. Applicants can also foreclose his loan before the end of the tenure by paying a certain percentage of the outstanding amount as charge.