Car Finance Companies

There are a lot of Car Finance Companies all over the world. In a developing country like India, various Non Banking Financial Companies (NBFCs) and Banks are working as Car Finance Companies. You will find that a new model of car is launched in the country every other day and umpteenth number of times, it is your wish to change your old car and buy a New Car, but there is a bitter bite of reality that brings you back to earth that if you want to buy a New Car, you need a lot of money. The good news is that there is not much to worry because to fulfill your dreams a large number of Banks and Financial Institutions are there and they are acting like the Santa Claus of this age. Nowadays, car Loans are available for New Cars, as well as used cars also. A lot of information about Car Finance Companies is available for you if you go through this section.

One of the largest Nationalized Banks in India, SBI (State Bank of India) is offering the following benefits:

• Repayment periods up to 7 years
• Low processing
• No advance EMI needs to be paid with the down payment which effectively increases the amount of Loan.
• The method of interest calculation is the Reducing Balance method which means at the time of Repayment, you are paying interest which has been calculated on the remaining balance and not which has been there at the start of the year.

The Loan is available to you upto the range of 2.5 times of your net annual Income. The minimum Income cap of any individual should be 75000 rupees per annum. The Bank is sanctioning Loans for New Cars as well as old cars, which are not more than five years old. People who do not have an account with this Bank can also avail Loans from the Bank provided they produce relevant documents such as identity proof, address proof, or other necessary documents.

Another Bank, UTI Bank is offering Loans which cover 85% of the vehicle’s cost plus insurance and registration charges. It has another scheme in which the Loan is offered at 20 times your monthly net salary. The Repayment of the Loan has to be done within 60 monthly EMIs or within a maximum period of 5 years.

The key features of the Car Loan which is provided by UTI are given below:

• 13% Interest rate on a monthly reducing balance basis.
• Repayment period is maximum 5 years
• Check off facility is available in which installments are directly paid by the employer.
• The full amount of the vehicle will be insured in the Bank’s favor.

One of the largest private sector Banks in India is ICICI Bank. In the Car Finance field, it is offering predominantly competitive rates.
Features

• Loans are available up to 95% in case of New Cars and 85% in case of old or second hand cars.
• Repayment period of the Loan is maximum 7 years.
• The option of car overdraft is available in which 90% of the car value is given to you.

The other Financial Institutions providing Car Finance in India are:

• HDFC Bank Ltd.
• Ford Credit Kotak Mahindra Ltd.
• Kotak Mahindra Primus Ltd.
• The Financial Services company of Fiat.
• CitiBank
• The Saraswat Co-Operative Bank Ltd.
• Citicorp Maruti
• The Standard Chartered Bank-India
• Times Bank
• Sundaram Finance
• Tata Finance Ltd.
• Associates Finance

Some important points need to be mentioned regarding Car Finance in India in spite of the fact that the criteria for Loans varies from Bank to Bank and from institutions to institutions which are functioning as Car Finance Companies.

The Eligibility For a Car or Two Wheeler Loan

• In case of UTI it is anyone who is within 24-55 years of age and for SBI it is available for persons who are within 21-65 years of age.
• Any individual is eligible for the Loan if he/she is working for a reputed private or public company. The Loan facility is available for self employed persons or working professionals if he or she is an Income tax assessee. From time to time, the minimum cap of annual Income is fixed, but the Bank can change it without giving prior notice.

Among other countries in Asia, Japan takes an important role to play in the field of Car Finance Companies. According to J.D. Power Asia Pacific 2005 Japan Automotive Financing Study, Toyota Finance ranked the highest in Japan in terms of dealer satisfaction for the second consecutive year in the field of Automotive Financing.

Some of the Institutions that are providing Car Finance in Japan are:

• Toyota Finance.
• Orient Corporation
• JACCS
• Nippon Shinpan
• Primus Finance Services
• Honda Finance
• Hitachi Capital
• Nissan Financial Services
• Mitsubishi Auto Credit and Lease.

In the United States, CarsDirect is ranked the first amoung the Car buying sites. The big players in the field of Car Financing in the United States are CitiFinancial, HSBC, CitiBank, Capital One and ICICI Bank etc.

Thus you can see that the prospect of Car Finance Companies in India is growing day by day as the terms and conditions for buying a car have become more easy nowadays.