Car Refinance

Personal Loan

Check Your Eligibility

What is a Car Loan?

Some dreams are considered to be so sacred that they never come true. Owning a car which will enhance your reputation was one such dream until recent times due to the high price of any vehicle in India. But with easy EMI options and attractive interest rates, banks and NBFCs started offering car loans. These loans are specifically designed to buy a car or any other vehicle for that matter. By opting to take a car loan, now you can touch the golden dream of owning a car. Many banks and NBFCs also offer Used Car Loans. If you are interested in buying a previously used car or a second hand car, banks will help you in that aspect too.

What is Car Refinance?

Car refinance is a type of secured loan. You can avail funds by keeping your car as collateral to the bank or NBFC. This type of secured loan is getting popular day by day. Banks and NBFCs are also willing to give this loan. By opting for car refinance, one can get smaller loan amounts for shorter tenure. Until your car is kept as collateral to the bank, you can still use your car. Banks give loan on the basis of car’s current condition, borrower’s financial history, CIBIL score, ability to repay the loan and other debt obligations. The amount of loan is decided on the current on road value of the car. Banks give loan amount up to 60% to 70% of the car value for the tenure of maximum 60 months i.e. 5 years.

Why should you take a Car Refinance Loan?

There are various reasons to opt for a car refinance loan in India. We have listed some of them below:

Secured Loan

Car refinancing is a type of secured loan. You get lower interest rate when you opt for a secured loan. Here you have to put your car as collateral to the bank to get funds. The car’s original documents will be with the bank. They will be returned once you pay off the loan. But you can use the car until the loan is being paid. If by any chance you fail to pay off the loan, bank will confiscate your mortgaged car.

Multipurpose Loan

You can use funds from this loan to meet with any of your personal needs. Be it a medical emergency or a wedding or for debt consolidation; you can use it for anything. You don’t have to disclose the reasons behind taking this loan to the bank.

Easy Loan Terms

Banks offer loan amount up to 60% to 70% of the cars on road value. If you submit the documents correctly, the money is disbursed as quickly as in a day. The repayment period ranges from one year (12 months) to 5 years (60 months). Even the eligibility criteria are not very complicated.

What are the Eligibility Criteria to avail a Car Refinance Loan?

To determine whether you are eligible to get a car refinance loan or not, there are various criteria involved. Such as income, employment status, loan tenure etc. The criteria differ from bank to bank. Banks have divided eligibility criteria on applicant’s professions but there are some general criteria too which applies to everyone.

  • These are the generic eligibility criteria to avail a car refinance loan
  • You have to be an Indian citizen.
  • You should have a good savings history along with professional stability.
  • Your age should be between 21 years minimum and maximum 60 years.

Banks divide their applicants into two categories to determine the Eligibility Criteria

  • Salaried Applicant
  • This category includes regular salaried employees of private limited companies, public sector, government employees etc.
  • The applicants should be doing a job for minimum 2 years and should be with the current employer for minimum 1 year.
  • The applicant should have a minimum earning of Rs. 2,50,000 p.a. (including spouse’s if co-applicant).
  • Professional Applicant/ Self-Employed Applicant
  • This category includes professionals like doctor, engineer, architect, chartered accountant, trader, commission agent, contractor etc.
  • The applicants should have been in business or the current profession for at least 2 years.
  • The applicant should have a minimum earning of Rs. 2,50,000 p.a.
  • The applicant should be paying Income Tax Returns regularly

What are the Documents Required to avail a Car Refinance Loan?

The list of documents for availing a car refinance loan changes whether you’re a salaried applicant or a self-employed professional/ businessman. The process of getting a car refinance loan can be made easier if you know exactly what documents you need to submit with your application. The documents are filed according to the eligibility criteria.

  • The list of required documents differs from bank to bank. But we have given a generic list of required documents below:
  • Neatly signed and filled car refinance loan application form.
  • Passport-size photographs.
  • Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
  • Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
  • Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
  • Salary slips of last 3 months from application date.
  • Form-16 issued by current employer.
  • Bank statements of last 6 months from application date.
  • Copy of details of all existing loans.
  • A cheque covering the administrative costs/processing fees incurred by the bank in processing the application
  • Property papers with OC and CC.
  • Business proof (registration of business)
  • Copy of ITR/Assessment Orders of 3 years
  • Copy of challans proving that Advance Income Tax has been paid.

Why Choose Ruloans To Apply For Car Refinance Loan?

Ruloans is India’s fastest growing financial distributors. A comprised team with mammoth experience in finance and internally developed highly proficient Loan Calculator algorithm, we are pledged to offer solutions to all your financial needs. Borrowers can apply for a car refinance loan with Ruloans’ latest online application process. You can choose from a plethora of banks and NBFCs on our website for your car refinance loan. We help you borrow right.

Hassle free process

We have developed an efficient, smooth and easy process for our consumers to get a car refinance loan. Our easy to use online procedure allows consumers to apply documents quickly. Our highly proficient Loan Calculator also guides the consumers to embark on a hassle free process.

Benefits of applying with us

We value our consumers and are always on our toes to give them benefits of our expertise. Applying for a car refinance loan with us, gives you a chance to avail the best offers and deals from our partner banks and NBFCs.

Compare your loan options

You can compare interest rates, offers and services on our online portal. This will guide you to make the right choice and choose the right lender for your car refinance loan as per your budget.

Free expert guidance and advice

Our financial experts are always ready to give you the perfect advice. These highly trained professionals in finance know the back and forth of the industry. Our dedicated team of experts will help you at any given time, without charging a dime.

Privacy policy

We, at Ruloans understand the value of your documents and keeping them safe and private. Your loan applications are processed electronically with complete privacy and transparency.

How to Apply For a Car Refinance Loan on Ruloans?

  • Applying for a car refinance on Ruloans involves few easy steps:
  • Step 1: Go to the Go to the 'Car Loan' menu on our website and click on 'Car Refinance' option. There click on 'Check Your Eligibility' box.
  • Step 2: Fill out the initial personal and financial information. Once completed, our loan calculator checks your eligibility with its highly efficient algorithm.
  • Step 3: Our loan calculator presents you a list of banks and NBFCs most suitable for you as per your eligibility criteria. The list will include the name of the financial institutions, interest rates, required document list etc.
  • Step 4: From the given list, you can choose the financial institute of your choice. You can start filling up the form and upload the required documents. Here, if needed, you can call or mail our experts for advice. The contact details are given on our website.
  • Step 5: Your application will be sent electronically to the bank you selected. You will be informed about the status of your application via SMS, email or you can track it via website too.

Frequently Ask Questions

Check Your Eligibility