FAQ
Frequently asked questions
Find answers to the most frequently asked question in the automobile financing industry here. Know us better, learn the process, and be confident with your choices.
We don’t sell… We Educate… Guide… Advice… & Process
Once you have decided, you are now down to two options: buying a car outright or getting an auto loan. That’s true, different profiles have different options. Whether you are a salaried employee or a business owner, you are still putting the same hard-earned money into buying a lasting experience. And you certainly wouldn’t want the burden of the taxation while handling larger payments without a loan – which is why we offer you various banking, NBFCs, and private financier choices with flexible repayment options, cashback offers, competitive and convenient EMIs, and more.
A pre approved auto loan is a loan you can get before purchasing a car. By submitting your Income, residence, loan, and personal information documents to the lender you can avail the loan on your future dream car. Although, the lender may ask about the car you wish to purchase; you could always change the decision on the pre-committed vehicle by contacting the lender if you change your mind after a test drive.
People with low credit scores share nightmares of getting their loans approved. If you have an automobile on rent or if you’re looking for an affordable automobile but don’t want to be weighed down by a high CIBIL score, we have several options for that as well! We have connections with leading banks and financial institutions as well that go beyond just looking at credit scores.
Generally, the bank or the lender will need some documents from you in order to process your loan. These documents will help us verify your identity and income. Please visit the documentation section above to see a list of the required documents.
Before you apply for a loan, it is ideal to weigh your options against the key factors involved in the repayment process, i.e your monthly salary, CIBIL score, repayment capability, EMI per month, and interest rates in comparison with the price, make, and model of the car. And at Blue Carz, you will be at ease of information without having to visit multiple websites for the comparisons, hence you will get the idea of various competitors in the market suitable for your needs without having to sweat and choose the institution that offers the best interest rates, whether it be a bank or a car dealership.
No. The collateral for the car loan is your car itself. No other guarantor or security is required. But if you are unable to meet one or more requirements stated by the financier, you might benefit from bringing a guarantor with you. However, some banks do provide a loan against an existing vehicle owned by you, if you have one.
There are no laws restricting how many loans you can have at once. You are eligible to apply for another loan even if you already have one, as long as you meet the lender’s criteria. You can either avail a top-up loan on the existing loan, transfer your balance to another lender, or even take two auto loans at the same time. It depends on the lender and your financial situation.
If you have a satisfactory credit score and still your application is rejected, pending or inaccurate paperwork might be the reason for your car loan getting rejected. But if you are worried that your credit score or economic instability might be the reason, it is advisable to schedule a call with our representative at Blue Carz to weigh your options of a lender suitable to your requirements with an understanding of your economic background.
We have partnerships all over India with many of the top lenders such as HDFC, IDFC, IndusInd, Kotak, Axis, Tata Capital, Muthoot LTD, Bajaj Finance, Shriram Finance, as well as several private sector banks, captive lenders, NBFCs, and other leading financial institutions. Over 15+ choices in each category and best interest rates for your car loan to save you a lot of money and time.
There is no limit to the loan amount as long as you qualify for the loan. On a new car, you can avail of a loan amount of up to 100% on the on-road or ex-showroom price depending on your budget, requirement, and other deciding factors with a maximum period of 7 years and an extended period of up to 10 years. While the 100% funding may also go with loaning a pre-owned car, the repayment period ideally spans over 5 years, extended up to 7 years; if needed.
Car loan prepayment is highly beneficial when considering the prevailing interest rate, rather than the loan tenure. The conditions may vary from bank to bank depending on the lock-in period, prepayment penalty, actual savings, and more. If you wish to benefit from a loan, scheduling a call with our representatives would give you a clear picture of the terms and conditions provided by your lender before signing the loan agreement.
Yes. You can usually make a bargain on the loan interest rate based on your previous CIBIL scores or payment history, and relationship with the lender.
EMI is the equated monthly installment, where a moneylender shall receive a fixed amount from a borrower at a specified date each month for a specified period of time. And the Auto Loan EMI Calculator can help you see how much you’ll need to pay each year in principal and interest.
Mathematically, EMI = P x R x (1+R)^N / [(1+R)^N-1]
Where the variables, P = Principal amount of the loan, R = Rate of interest, and N = Number of monthly installments.
However, there are many tools available online to make accurate calculations. Also, you can use our EMI calculator at Blue Carz to determine your principal amount.
You can still get an auto loan with no credit history, or even with a bad credit history. Just make sure your lender is flexible with their financing options. Down the road, of course, once you get a car loan and make payments on time each month, you can improve your credit score for better loan terms later in life.
The repayment period for a loan on a new car is usually longer than for a used car. Most banks offer repayment plans starting from 1 year and lasting up to 7 years for a new car loan, although in a few rare cases – the loan can be extended up to 10 years. However most only offer a maximum of five years for a used car loan, extending the tenure up to 7 years under special circumstances.
Blue Carz is the best and safest way to get a new car loan eligibility. We never share your information with any marketing agency or third-party associates. Your sensitive and personal information is encrypted and kept safe with us to make your browsing experience easy and smooth.
After you have uploaded the necessary documents and filled out the loan application, our team and our lending partners will verify the information you have provided through multiple checks. The process of verification and loan approval can take anywhere from just 30 minutes to 48 hours influenced by the determining factors like the state of your credit, the documentation you provide, the type of vehicle you wish to purchase, and your citizenship or permanent residency status.
A variety of cars ranging from MPVs, Pickup trucks, SUVs, Convertibles, Sedans, Coupes, Hatchbacks, and more can be financed for an auto loan on Blue Carz.
