FAQ
Frequently Asked Questions
Everything you need to know about the product and billing.
What is a car loan?
A car loan is a financial offering provided by banks or financial institutions, enabling individuals to purchase vehicles for personal and family use. Typically, banks extend car loans for acquiring brand-new or reconditioned unregistered vehicles. Additionally, certain banks facilitate the purchase of used cars, and we offer the option for 'Second-hand' cars as well.
How can I get the best available option for my car loan?
Just simply log in to our FinCoachBD platform, put some basic information and get a free comparison among all the available car loan facility prevailing in the market. You can select the one that suit you best and can apply through our online platform. It’s a hassle free 24x7 service…!!!
Can I get a loan to purchase a used car?
Yes, you can buy a used car with certain banks, and we provide the option for 'Second-hand' cars too.
Do I need collateral for a car loan?
No. Car itself works as the collateral as the underlying asset. Banks/FIs securitize it by the way of joint registration in their name.
In which cases can my car loan application be rejected?
Your loan application may be rejected if you don’t meet the bank’s minimum eligibility criteria such as minimum income level, age, previous relationship with the bank, higher debt burden ration, have defaulted on your repayments or applied for and been rejected for loans multiple times, etc.
What is the maximum amount of loan that I can avail?
In general the banks allow up to 70% of the vehicle value including registration cost.
What documents do I need to submit when applying for a car loan?
Banks/FI normally ask the documents that are required to assess your loan repayment capacity along with vehicle documents. The general required documents are – Salary certificate, income proof, business entity legal documents, bank statements, utility bill copy, NID, PP, Vehicle quotation, etc.
What is the typical tenure of a car loan?
In general, its maximum tenor is 5 years. However, it varies from bank to bank.
Do I need a loan guarantor or co-borrower?
It depends on individual bank’s/FI’s credit norms. In general, if your income is sufficient, no guarantor or co-borrower is required. However, some banks may ask for it even if you have sufficient income to cover the debt.
Can I get financing for insurance and registration?
Car loans do not cover the insurance or registration fees that you have to pay at the time of buying the vehicle. Car insurance which is mandatory, needs to be purchased separately and all vehicle registration-related costs also have to be borne by you as they are not covered by your car loan. However, there are few banks that cover these costs under special schemes.
Can I pre-pay my car loan?
Yes, you can but it depends on respective bank’s own policy. There are some banks that allows pre-payment free of cost while few other impose charges.
Can I sell my car before repayment of the car loan is completed?
No. Lenders who provide car loans to individuals only allow the car to be sold to a new owner when the loan has been paid off in full. This is because, you need to a get a NOC from the bank before you can sell you car and the document is released only after you have paid off the car loan in full.
How can I make my loan EMI payments?
Repayment of loan can be done through post-dated cheques (PDC) provided by you to your lender when signing up for the car loan. The other option is an auto debit facility where the EMI is automatically debited from your savings account.
What if I don’t pay EMIs on time?
Generally, banks treat you as a defaulter if you fail to pay two or more EMIs in a timely manner. You will initially be charged a penalty fee and asked to regularize your payments. If you fail to regularize your payments after repeated notifications, the financial institution can legally repossess your vehicle.
Can I take a car loan from lenders other than traditional banks?
Yes. FinCoach allows you to apply to different Financial Institutions for car loan and you can avail those facility.
