What is a Car Loan?
Some dreams are considered to be so sacred that they never come true. Owning a car which will enhance your reputation was one such dream until recent times due to the high price of any vehicle in India. But with easy EMI options and attractive interest rates, banks and NBFCs started offering car loans. These loans are specifically designed to buy a car or any other vehicle for that matter. By opting to take a car loan, now you can touch the golden dream of owning a car. Many banks and NBFCs also offer Used Car Loans. If you are interested in buying a previously used car or a second hand car, banks will help you in that aspect too.
What is Car Loan Top Up?
If you feel like you need additional amount on your existing car loan, then you should opt for a car loan top up. The additional loan amount is known as a top up loan. The extra amount is given by the lender on the basis of his or her CIBIL score, current debt obligation and ability to pay off the loan. The interest rate slightly increases when you opt for a car loan top up. The top up loan amount totally depends the car's value and borrower's profile.
Why should you take a Car Loan Top Up?
Cars are expensive and can't be purchased by the existing savings only. Even if you use all your savings to buy a car, it is not a financially sound decision to do so. Thus taking a car loan and paying regular EMI's makes more sense financially. After taking the loan, if you want to buy even expensive car, you should avail this loan.
What are the features of Car Loan Top Up?
- By taking a car loan top up, you keep yourself open to better cars and to extend your car budget a little more. You can get a car rather quickly than saving money for it for years.
- You can get a car rather quickly than saving money for it for years.
- Car loan top up is a type of secured loan. When you buy a car with a car loan top up, it is kept as collateral to the bank but still you can use it while making the repayments.
- You don't need to keep your property or any other valuable items as mortgage against car loan top up.
- You can add your spouse as co-applicant.
- The repayment tenure for a car loan top up ranges from 3 years to 7 years, depending on the principal amount and interest rate.
- Though banks provide both fixed and floating rate of interest in car loans top up, the most preferred is the fixed interest rate. This gives you a chance for better financial planning in future as the EMI amount does not change till it's fully repaid.
- Banks offer flexible EMI options as per customer's needs.
What are the Eligibility Criteria to avail a Car Loan Top Up?
To determine whether you are eligible to get a car loan top up or not, there are various criteria involved. Such as income, employment status, loan tenure etc. The criteria differ from bank to bank. Banks have divided eligibility criteria on applicant's professions but there are some general criteria too which applies to everyone.
- These are the generic eligibility criteria to avail a car loan:
- You have to be an Indian citizen.
- You should have a good savings history along with professional stability.
- Your age should be between 21 years minimum and maximum 60 years.
Banks divide their applicants into two categories to determine the Eligibility Criteria
- Salaried Applicant
- This category includes regular salaried employees of private limited companies, public sector, government employees etc.
- The applicants should be doing a job for minimum 2 years and should be with the current employer for minimum 1 year.
- The applicant should have a minimum earning of Rs. 2,50,000 p.a. (including spouse's if co-applicant).
- Professional Applicant/ Self-Employed Applicant
- This category includes professionals like doctor, engineer, architect, chartered accountant, trader, commission agent, contractor etc.
- The applicants should have been in business or the current profession for at least 2 years.
- The applicant should have a minimum earning of Rs. 2,50,000 p.a.
- The applicant should be paying Income Tax Returns regularly
What are the Documents Required to avail a Car Loan Top Up?
The list of documents for availing a car refinance loan changes whether you're a salaried applicant or a self-employed professional/ businessman. The process of getting a car refinance loan can be made easier if you know exactly what documents you need to submit with your application. The documents are filed according to the eligibility criteria.
- The list of required documents differs from bank to bank. But we have given a generic list of required documents below:
- Neatly signed and filled car refinance loan application form.
- Passport-size photographs.
- Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
- Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
- Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
- Salary slips of last 3 months from application date.
- Form-16 issued by current employer.
- Bank statements of last 6 months from application date.
- Copy of details of all existing loans.
- A cheque covering the administrative costs/processing fees incurred by the bank in processing the application
- Property papers with OC and CC.
- Business proof (registration of business)
- Copy of ITR/Assessment Orders of 3 years
- Copy of challans proving that Advance Income Tax has been paid.
Why Choose Ruloans To Apply For Car Loan Top Up?
Ruloans is India's fastest growing financial distributors. A comprised team with mammoth experience in finance and internally developed highly proficient Loan Calculator algorithm, we are pledged to offer solutions to all your financial needs. Borrowers can apply for a car refinance loan with Ruloans' latest online application process. You can choose from a plethora of banks and NBFCs on our website for your car refinance loan. We help you borrow right.
- Hassle free process
We have developed an efficient, smooth and easy process for our consumers to get a car loan top up. Our easy to use online procedure allows consumers to apply documents quickly. Our highly proficient Loan Calculator also guides the consumers to embark on a hassle free process.
- Benefits of applying with us
We value our consumers and are always on our toes to give them benefits of our expertise. Applying for a car loan top up with us, gives you a chance to avail the best offers and deals from our partner banks and NBFCs.
- Compare your loan options
You can compare interest rates, offers and services on our online portal. This will guide you to make the right choice and choose the right lender for your car loan top up as per your budget.
- Free expert guidance and advice
Our financial experts are always ready to give you the perfect advice. These highly trained professionals in finance know the back and forth of the industry. Our dedicated team of experts will help you at any given time, without charging a dime.
We, at Ruloans understand the value of your documents and keeping them safe and private. Your loan top up applications is processed electronically with complete privacy and transparency.
How to Apply For a Car Loan Top Up on Ruloans?
- Applying for a Car Loan Top Up on Ruloans involves few easy steps:
- Step 1: Go to the Go to the 'Car Loan' menu on our website and click on 'Car Loan Top Up' option. There click on 'Apply Now' box.
- Step 2: Fill out the initial personal and financial information. Once completed, our loan calculator checks your eligibility with its highly efficient algorithm.
- Step 3: Our loan calculator presents you a list of banks and NBFCs most suitable for you as per your eligibility criteria. The list will include the name of the financial institutions, interest rates, required document list etc.
- Step 4: From the given list, you can choose the financial institute of your choice. You can start filling up the form and upload the required documents. Here, if needed, you can call or mail our experts for advice. The contact details are given on our website.
- Step 5: Your application will be sent electronically to the bank you selected. You will be informed about the status of your application via SMS, email or you can track it via website too.
Frequently Ask Questions
It is not mandatory to apply for a bank account before taking a loan from it. But if you have an account with the bank, you become eligible for a relationship discount. Some banks also provide you additional services along with relationship discount.
Yes, you can track your application via SMS and email. We also provide the facility to track your application on our website via login menu.
For your loan-related queries, you can call our representative on 1800 2667576 or mail us at email@example.com