Car loan schemes for Government employees
To help individuals employed by the government as well as various public sector undertakings, most of the banks and NBFCs are offering car loan schemes that enable them to purchase a car easily.
Here is a list of financial institutions that offer special car loan schemes to the government employees in 2020:
HDFC Bank
Benefits and key highlights:
- The bank offers 100% on-road financing on a new car loan.
- HDFC Bank offers its customers 3% to 6% foreclosure charges depending on when the foreclosure is initiated.
- Flexible repayment tenures from 12 months to 84 months.
- Existing car loan customers can get a top-up loan with no documentation.
- The minimum monthly income of the applicant must be Rs. 25,000. The income of the applicant’s spouse, earning children, parents can be considered while determining the loan eligibility.
State Bank of India
Benefits and key highlights:
- The bank offers flexible long repayment tenure of up to 7 years.
- Financing up to 90% of the on-road price of the car. On-Road includes Registration, Insurance, and Extended Warranty/ Total Service Package/ Annual Maintenance Contract/ Cost of Accessories.
- An advance EMI cannot be paid.
- SBI also offers optional Life Insurance cover to its customers.
- Net Annual Income of the applicant or co-applicant together should be a minimum of Rs. 3,00,000 i.e. Rs. 25,000 per month.
Punjab National Bank
Benefits and key highlights:
- The loan can be utilized to purchase a new car, jeep, van, Sports Utility Vehicle (SUV), or a Multi Utility Vehicle (MUV), old car, van, jeep, MUV, or SUV. These vehicles should not be older than three years.
- No processing or documentation charges are involved in this loan scheme.
- No collateral security is required for permanent employees of the Central Government, State Government, Public Sector Banks.
- No prepayment charges if the car loan is taken at a floating interest rate.
- Lower processing fee of 0.25% of the loan amount.
- Nil charges for documentation.
- The minimum monthly income of the applicant must be Rs. 20,000.
- The quantum of finance is Rs. 100 lakhs or 25 times of Gross Monthly Salary / Pension/ Income, whichever is lower.
- The maximum repayment for a new car, van, jeep, MUV, or SUV is 84 EMIs.
- The maximum repayment for an old car, van, jeep, MUV, or SUV is 60 EMIs.
How to apply for a car loan online?
To apply for the car loan scheme of your choice from the above-mentioned financial institutions, you need to follow the below-mentioned general process-
- Visit your preferred financial institution's official website.
- Check your eligibility and then fill the car loan application form along with necessary details such as your name, age, income, contact number, and address.
- Upload the scanned copy of your KYC documents such as identity proof, income proof, and address proof.
- After filling the form, the bank will verify the details furnished by the applicant and process the loan application.
- Upon car loan approval, the loan amount will be disbursed to the applicant’s bank account in a matter of a few hours.
- Make sure you have a good credit score of 750 or above to get a low-interest rate car loan.
