Can buy even without down payment
zero down payment car loan: It is everyone’s dream to buy a new car, but it becomes the biggest difficulty for many people to deposit the amount of down payment. For this reason, many people postpone the plan to buy their car. But now there is no need to get upset, because many banks and finance companies have brought zero down payment schemes. Under this scheme, you can take your new car home directly from the showroom without paying any advance.
How does the zero down payment scheme work?
In this scheme, you do not need to pay any large amount or down payment in the showroom while buying a car. That is, the entire on-road price of the car finances the bank or finance company. After that you gradually repay the loan through EMI. Meaning, while buying a car, not one rupee will not go from your pocket.
To understand with an easy example, suppose you have gone to buy an electronic thing of Rs 60,000, then you usually have to pay at least Rs 10,000 down payment. But if you choose zero down payment, then you can take that thing home without giving even one rupee. The same method also applies in buying a car.
How do you get zero down payment car loan?
Many banks offer their old customers to buy a car on zero down payment, which is called a pre-upward car loan. If your credit score is good or your income is high, then you can get this facility. Usually this loan is given for a period of up to 7 years. However, processing fees are taken with loan.
Interest rate is slightly higher
The interest rate on normal car loans ranges from about 8.75% to 9%, but on zero down payment this rate can go from 9% to 10%. Zero Down Payment Loan includes ex-showroom price, registration, road tax and insurance of the car. But if you get accessories, then you have to bear the expenses yourself. For this loan, information of Aadhaar card, PAN card, address proof, income related documents, 6 months bank statement and some cases are also sought information.
Which banks give zero down payment loans?
Large banks and finance companies of the country like SBI, HDFC, Axis Bank, Bajaj Finance provide these facilities. Their application process is easy and demands less documents. But not everyone is eligible for this scheme. Banks decide the eligibility according to credit score, income and other important things.
This scheme is very beneficial for those who want to buy a car without their savings, or who currently do not have money for down payment. This feature can be available for both new and second hand cars, but for this it is necessary to fulfill the conditions like your income, age, job and credit score.