With the world growing in leaps and bounds, owning a car has become necessary for you and your family to live a stable and comfortable life. Fortunately, today with the emergence of several financial institutions, interest rates for car loans are less and online car loans can be availed within no time. Download the Navi App today to avail vehicle loans within just a few minutes at the convenience of your home.
Easy steps to apply for Car Loans at Navi
To avail car finance through Navi, follow the steps given below-
- Download the Navi App from the Google Play Store and register by entering your mobile number
- Click on the “Apply” tab to proceed.
- Answer a few simple questions such as-
- Name as per PAN card
- Age
- Monthly Income
- PAN card number
- Employment
- After submitting your application, it will undergo an eligibility check with Navi’s technology-driven process.
- After your loan is approved, you can customise it according to your requirements.
- Complete your KYC process by uploading a selfie and Aadhaar Card number
- Link your bank account details, for your loan amount to get credited to your bank account immediately.
Benefits and Features of availing Car Loans through Navi
Here are a few noteworthy features and benefits to apply for cheap car loans through Navi-
-
Fast Approval
Navi ensures that the entire process of availing loans is fast and easy. The loan application at Navi gets instant approval, and your funds are credited to your bank account instantly.
-
Minimal Documentation
At Navi, only minimal documents are required to complete the process, making it the best platform for availing car loans. All you need is your PAN card and Aadhar card.
-
Flexible Repayment
You can customise a repayment plan according to your convenience in the Navi App. Choose the EMI plan based on your income and outgoings.
-
Low-Interest rates
Low-interest rates car loans can be availed at Navi, without difficulty if the credit score of the applicant is good.
-
EMI calculator
The Navi App provides the users with an online EMI calculator which can be helpful for choosing the best EMI plan for you, based on your income and outgoings. This EMI calculator is one of the best benefits given to the users of Navi.
Documents required and Interest rate of Car Loans at Navi
Here are a few documents you need to avail a car loan at Navi-
- Identity Proof
- Age Proof
- Address Proof
- Income Proof
- Passport sized coloured photograph
Mostly, your Aadhaar Card and PAN card serves as the identity proof, age proof and address proof for a car loan.
The interest rates of a Car Loan at Navi depend entirely on the loan amount, the duration, the EMI plan etc. However, the average interest rates for car loan ranges from 7.50% to 13.0% pa.
Eligibility for availing a Car Loan through Navi
Navi does not prescribe a complicated procedure for availing a car loan, and it only requires you to meet a few basic parameters such as-
- The applicant must be an Indian citizen.
- He or she must possess a valid Aadhaar card and PAN card.
- The minimum age of 18 years and maximum age of 65 years is required to avail a new car loan.
- He or she must be a salaried employee or a self-employed individual.
- The applicant must have a stable income to avail car loan through Navi.
- The borrower must have a good credit score. A minimum credit score of 650 and above is necessary to get low-interest rate car loans.
Do’s and Don’ts when choosing a Car Loan
|
Do’s |
Don’ts |
|
Choose the option that offers the best interest rates for car loans. |
Do not apply for a loan amount above your eligibility, as this might increase the chance of rejection. |
|
Read about the insurance premium of your car as it a recurring cost. |
Do not opt for a car with high maintenance cost as this may increase your financial burden. |
|
Check out for offers before applying for a car loan. |
Do not rely on dealers for applying for a car loan as they may not give the best interest rates for car loans. |
Tips to Get a Car Loan approved faster
Here are a few tips to get your loan approved faster –
-
Improve your Credit Score
Ensure to have a good credit score to get your car loan approved faster. A minimum of 650 and above is a requirement for availing a car loan.
-
Pay off your debts on time
Make sure to pay your already existing loans on time, because that indirectly reflects your credit history. Avoid penalties and keep a clean record of improving your chance of getting a new car loan faster.
-
Complete other formalities
To avail a new car loan faster, be prepared with your down payment and other required documents. If the miscellaneous formalities are completed, the chances of your loan being rejected are less.
Foreclosing Car Loan
Foreclosing means that the applicant decides to pay back the loan amount before the tenure terminates. Most financial institutions charge a penalty fee, although a few lenders allow you to foreclose the loan without any penalty. Once you have foreclosed the loan, you will get the full ownership of the car. Before deciding to foreclose the loan, Take a look at the rules and regulations prescribed by the institution to understand if foreclosing a loan attracts penalties or not.
Foreclosing a loan would only be a good option if your income has increased and you wish to clear off your liabilities.
Car Refinancing
Car financing essentially means that the applicant will take a new loan to repay the balance of the existing car loan. People go for the refinancing of car loans if they wish to save money. You may choose to refinance your auto loan to enjoy low-interest rates, extended tenure period and reduction of EMI payment burden.
Car refinancing should only be opted if the interest rates on car loans have been reduced from that of the original loan, or if your financial condition has improved. However, refinancing a car loan would not be a prudent decision if you have already paid a substantial amount of the original loan or if the value of your car has depreciated.
Tax benefits on Electric Vehicle
If you decide to purchase an electric vehicle (EV) with the help of a loan, it could help you save a considerable amount of money. As a part of the government’s efforts to curb pollution, the government has introduced many benefits for purchasing an electric vehicle. The Finance Minister in the Union Budget of 2019-2020 announced a tax rebate of Rs. 1.5 lakh on the interest paid for an electric car loan. Therefore, you will be able to get a benefit of around 2.5 lakhs during the entire tenure of the loan. The government has also reduced the tax rates on electric vehicles from 12% to 5%.
How is a personal loan for a car better than a bank loan?
It is always prudent to avail a personal loan for a car instead of opting for a car loan from the bank for the following reasons-
- A personal loan is an unsecured loan and hence, will not require any asset to avail the loan. Whereas, a bank loan is a secured loan and you will have to hypothecate your car to the bank
- Personal loans are much better than a bank loan because they are flexible and require minimal documentation. However, availing a car loan from the bank requires you to complete numerous formalities which can make the entire process of availing the loan complicated and tedious.
- Personal loans have a flexible end-use and can be used for various purposes; however, car finance from banks are only given to purchase an automobile.
Applying for car loans through Navi is a straightforward and fast process. It does not require much documentation, and the technology-driven process of Navi checks your loan eligibility within minutes. Navi also has a car loan calculator where you can easily check your EMI plan and other loan-related amounts.
Frequently Asked Questions
What are the factors that affect the interest rates on car loans?
Interest rates on car loans are affected by factors like your income, EMI plan, debts etc
How can I reduce the chances of rejection of my application?
You can prevent your application’s rejection by complying to all the eligibility criteria and having a good credit score.
