In less than 25 yrs since the late 80s, the Banks and NBFCs have made quite an entry into the retail space of Car loans and financing. The industry today has come a long way. It is estimated that as many as 65 cars out of every 100 new cars sold are financed. In the Metro cities and larger towns this percentage is even higher. Today car financing is well and truly a vital lifeline of the success Indian car industry. Financial institutions are also aggressively pushing to promote loans and financing on Used Cars, although this has yet to see the kind of omnipresence we see on New Car loans.

Car financing and loans schemes offered by various Banks and NBFCs (Non banking finance companies) give the borrower flexibility of choosing the extent of finance required and the tenure/repayment period as per their pocket. Car loan processing too has now been streamlined and it is unusual for a case to take more than 2 to 3 working days to be processed after submission of requisite documents. This process has also become faster with finer credit appraisal processes and a large credit history database comprising our repayment behaviour available with these Banks / NBFCs. Today most financial institutions check the background of a borrower with the Credit Information Bureau (India) Limited (for details Click here). Individuals too can obtain their Credit reports directly from CIBIL to see where they stand.

If you are looking to buy a car, it is better to apply for a Car loan and get your case either pre-approved or to get the Car loan approval simultaneous with the car short listing process. There are two advantages to this – first - you will save time and no sooner you decide on the car you wish to purchase and the dealer; in the case of a pre-approved loan the disbursement can take place with 1-2 working days of your asking for the same. The second advantage is that other things being equal, chances are you would get better financing terms through an online portal such as ours as these are processed directly by the Banks/NBFCs.

To know more about frequently used terms vis-a-vis Car Financing - click here

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