BANKING PRODUCT AND SERVICE

Presentation on Auto loan
Presented by,
NAMITA DHINGRA SANDEEP KAUSHIK VIPIN MITTAL

Quiz on auto loan
what(%) tax rebate one gets on an auto loan. ANSWER: NO REBATE What is used as collateral security in auto-loan? Answer: VEHICLE ITSELF Can u tell us the approx. range of present car loan interest rate. ANSWER:9%-13%

Is there a way to trade in your car if you are upside-down on the car loan? ANSWER: YOU CAN BUT I WOULD NOT. What do you do if the insurance(Which is given free with car) for a totaled car does not pay off the car loan? .Quiz continue««.

Quiz continue««.once they sell the car you still owe the left over balance. Do you still have to make payments after returning a car to your financier? Answer: No.. Just because you don't have the car anymore DOSEN'T mean you didn't borrow the money ... you do not have to make payments HOWEVER...

Loan period: 3-7 years(new cars). Early settlement of the pending amount is available. Equated Monthly Instalment (EMI) is worked out for repayment. . Interest is calculated on the basis of compound interest.shorter(used cars).Auto loan To purchase a new car or a used car. Car used as collateral security Risk: minimal Upto 90% can be financed.

TYPES OF AUTO LOANS NEW CAR LOAN USED CAR LOAN .

ROAD TAX ETC) .NEW CAR VS USED CAR NEW CAR INTEREST RATES AMOUNT OF LOAN SANCTIONED REPAYMENT TENURE ADDITIONAL COST LESS(14%) 90%-100% LONGER LESS USED CAR HIGH(20%) 80-%85% SHORTER HIGH COST(INSURANCE.

INCREASING DISPOSABLE INCOME. . IMPULSE TO OWN A PVT CAR.SCOPE FOR USED CAR LOANS IMPROVED LIVING STANDARDS.

Different types of Auto Loan Margin Money Scheme Advance Equated Monthly Scheme Security Deposit Scheme Hire Purchase Scheme Lease Financing Purchase .

Preferred if repayment term is 1-5yrs Advantage: it has lowest EMI to be paid. compared to other schemes for the same amount of loan .Margin Money Scheme Is a payment made by the borrower Usually 10% of the total loan amount.along with EMI The balance amount is paid through post-dated cheques.

Besides. 5 EMIs have to be paid in advance and the rest is paid through post dated cheques. No of EMIs depend on the tenure of the loan. you go on to pay a higher EMI amount because the interest is charged on the entire loan amount .Advance Equated Monthly Instalment Scheme Offers 100% loan. Disadvantage: need to pay five to nine installments up front.

Security Deposit Scheme Certain amt must be deposited as a security against the loan. Interest received on deposit.but amount is less than the rate charged on loan. Security deposit refundable. Security deposit is 10-30% of the loan amt . The EMI under this scheme is higher than the EMIs under the above two schemes.

mostly offered by Non Banking Finance Companies this option works similar to the loan option. on payment of which the car passes on to the hirer The NBFC's have taken to this option. which is a Banks privilege. NBFCs usually charge an amount as low as One Rupee. as they are not encouraged to give loans.Hire Purchase Scheme Agreement under which the car is let on hire and under which the hirer has an option to purchase the car in accordance with the terms of the agreement. called Option money. .

Lease agreements are offered by NBFC's and are mostly availed by Corporates looking at it mainly from tax saving angle .Lease Financing Purchase Lease is a contract between the owner of an asset (the Lessor) and its user (the Lessee) for the hire of that asset The ownership rests with the lessor while the right to use the asset (car) is given to the lessee for an agreed period of time in return for periodic rental payments by the lessee to the lessor.

Important Issues of L-Application Pre-payment penalty Grace period Interest rates consistency Documents signature Cheque payment Loan installment including all charges Loan statement Issue of lien in the end & Loan Clearance Certificate .

Eligibility Parameters Age of the borrower Time period of Loan Employment period of borrower Collateral securities Deviation if any .

com/accesscredit. Get your own credit report http://www. Any promise made by the DSA or even an official of the lender has no value unless it is in writing or at least on email. You do not have to necessarily buy car insurance from the Car dealer.cibil. .Points to be taken care«.htm Negotiate smartly to get the best car loan rates. DO NOT SIGN BLANK APPLICATION FORMS OR DOCUMENTS and keep a copy of all documents submitted to the lender for your future reference. Opt for fixed rates of interest Be aware about the Processing fees and Pre-payment Charges .

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Documentation Requirement Salaried Sector While applying for car loans in India. you need to furnish the following documents: Identification Proof Income Proof Residence Proof Office Address Proof Signature Proof Credit History Photographs .

Documentation Requirement Self-employed Sector & Firms Income Proof Existence Proof Acknowledgement of IT returns Signature Verification Proof Credit History Declaration on Letterhead of Company Photographs Others .

. Self employed person can take the tax benefit on depreciation as well as on the paid on the amount borrowed for the purchase.Tax benefit Salaries employees can not get tax benefit on loan taken for purchasing a car.

PRIVILLEGES: Credit cards holders who have been using the card for more than a year and have a good repayment track record can get instant funding.Banks offering auto loans«.* Car Loans with Fixed Interest Rates: ICICI Bank offers new car loans with fixed rate option only. One can also avail of a loan against Fixed Deposit to buy the car. . ICICI auto loans Loan on the Strength of Your Income: Submit income proofs as required and avail finance up to 90% of the ex-showroom price of the car.

** SALARIED PROFESSIONALS: BORROW up to 3 times your annual salary Self Employed Professionals: 6 times your annual income. existing HDFC Bank Car Loan customer with a clear repayment of 12 months or more they can Top-Up your car loan to the extent of the original loan value. CORPORATE ACCOUNT:FASTER APPROVALS WITH MIN DOCUMENTATION.HDFC AUTO LOANS Avail 100% finance on your favorite car. .

75% Maximum tenure 5 year and more 5 year and more .Contents ICICI HDFC Processing fee 2500-5000 2150-3650 Prepayment charges 5% 5% Downpayment 10% 10% Interest rates 10-13% 9.75-11.

Banks offering Auto Loans .

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. But yes! you can possess a car of your dreams.you can not do all good things with a car loan ««.