Indore is the most populated city of Madhya Pradesh. It is the commercial capital of Madhya Pradesh. Madhya Pradesh Stock Exchange in Indore is the third oldest stock exchange. With Cardekho, you can get a loan against your car in Indore of up to Rs. 25 Lakh.
What is loan against car?
Loan against car or car refinancing is additional funding that can be obtained from banks and other financial institutions that allows you to borrow money over and above your existing car loan. In practice, loan against car is the process of paying off your current car loan with a new one from your existing or new lender. Low interest rates and nominal processing charges make loan against car preferable compared to a personal loan.
Reasons to apply for loan against car
Cash in hand received from a loan against car can be used for various personal and professional financial needs. A few reasons to get a loan against car are:
Pay off expensive debts
You can choose to avail a loan against your car to pay off other debts like credit card debts, personal loan, car loan and any other loan(s).
Funding received from bank through a loan against your car is a great option when it comes to expanding your existing Business or starting something new of your own.
Meet other financial needs
You can use the loan amount for family vacations, or to meet medical expenses, wedding expenses, educational expenses of your children, to fulfil working capital needs or other reasons
Benefits of loan against car
Higher loan amount
Typically, a loan against car can be availed to the extent of 200% of the current value of your car. The cash in hand is higher if you have paid more Equated Monthly Instalments (EMIs) of your existing car loan.
The documentation required to apply for a loan against car is minimal.For loan amounts under 10 lacs, most financiers don’t even ask for ITRs or Balance sheets.
Loan against car application is faster to process in banks. This is mainly because of the presence of an existing loan. Physical verification of your residence/office generally gets waived off.
Lower interest rate
Interest rates for loan against car are much more attractive as compared to other kinds of unsecured loans, which makes it a cost-effective solution. Other alternatives for meeting your funding needs like personal loan or gold loan are provided at higher rates ranging from 16% to 24% per year.
Eligibility criteria for loan against car in Indore
The following people are eligible to apply for a loan against car in Indore
Individuals who are a minimum of 21 years of age at the time of applying for the loan, and no older than 65 at the end of the loan tenure
Individuals who have had a job for at least 2 years, with a minimum of 1 year with the current employer
Those who earn a minimum of Rs. 2,50,000 per year, including the income of the spouse
Self Employed Individuals
Individuals who are a minimum of 31 years of age at the time of applying for the loan, and no older than 65 at the end of the loan tenure
Those who have been in business for a minimum of 3 years
Should earn at least Rs. 2,50,000 per annum
Documents required for loan against car in Indore
To apply for a loan against your car, lenders need your documents to process your application based on your profile.