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FAQ on Car Loan



  • What are the steps involved in availing a loan?
    The following steps are involved -
    1. Choose a used Car
    2. Fill up the application form
    3. Submission of documents
    4. Field Investigation will be done by financial institution
    5. Approval of Loan by financer
    6. Submission of PDC’s & post approval documents
    7. Disbursement of Loan amount
    8. Delivery of car
  • Who can avail used Car Loans?
    1. Salaried individuals in the age group of 21 to 60 years (at the end of the tenure)
    2. Self-employed individuals in the age group of 21 to 65 years (at the end of the tenure)
    3. Partnership Firms
    4. Public & Private Ltd. companies
    5. HUFs and Trusts
       
  • What all documents are required for finance?
    1. Photo Identity Card.
    2. Address Proof
    3. Income Documents
    4. Latest Bank Account Statement
    5. Photographs
       
  • Which cars can be financed?
    This varies upon Model/Year of Manufacturing and at the financer’s discretion.
    Mahindra First Choice Wheels will assist you for choosing a car which can be financed.
     
  • How much finance amount can I avail on a car?
    You can get up to 80% of the car value on the discretion of financial institution
     
  • What are the loan tenure options?
    Pre - owned cars can be financed for 12 to 60 months
     
  • How interest amount is calculated?
    Interest is calculated on a monthly reducing balance basis
     
  • Do I have to pay any additional charges?
    Yes, all financial institutional use to charge “Processing Fee”, which varies from institution to institution.
     
  • How much time will it take for my loan to be approved?
    Loan processing is very quick now days. Normally once the complete set of documents is submitted it will take approximately 72 hours for banks to process the payment.
     
  • Who can be the co-applicants for the loan?
    Your spouse or any blood relative staying in the same residence can be a co-applicant. This is required if income of applicant is not justifying the Loan amount. It will be required, if income is less & it need to show more income
     
  • Any guarantor required?
    No, it is not a must. But few financers also extend loan facility based on Guarantor.
     
  • What is the Loan Repayment process?
    Loan is to be repaid with equal monthly installment (EMI’s) either through Post Dated Cheques (PDC’s) or through ECS facility if available.
  • Can I foreclose my loan before completion of full tenure?
    Yes, but only after completion of first 6 months. Foreclosure fee varies from 3-6% of outstanding principal.
     
  • Any security required against the loan?
    1. Hypothecation on the vehicle
    2. Noting of the hypothecation charges in the books of the RTO