Loan Details
How to Choose the Best Auto Loan?
It is a better idea to compare the different rates published by various banks and financial institutions before applying for the auto loan.
The best auto loan for your needs will depend on a range of factors such as the age of your car, what sort of flexible loan features you are looking after, and the amount you want to borrow.
Choosing between a fixed or variable rate
Fixed rates:
The bank or financial institution ensures that the interest amount remains the same for the entire loan period. However, most fixed-rate loan providers charge fees on early repayment of the loan. Therefore, while choosing a fixed-rate loan, it is important to select a term that aligns with how many years you want to spend paying off your loan.
Variable rates:
Under this plan, the interest rate changes over the period of loan in or against your favor. However, the financial institution rarely charges early repayment fees under this plan. Therefore, if your budget can handle a slight rate change plus you want the opportunity to clear your debt whenever it suits, a variable rate car loan would be the right option for you.
Applying:
Once you have found the best financial institution for your car loan, you need to furnish certain documents as required by the banks and financial institutions which have been mentioned herein:
1. Individual:
Identification:
- Photograph (2 copies)
- Citizenship and/or Passport
- Relationship Certificate (if applicable)
- Marriage Certificate (if applicable)
- Bank statement of at least 6 months
- PAN Certificate of the individual (for Loan amount above NPR 5 million)
Income Source:- Salary certificate
- A rental agreement along with tenant’s identification (if rental income is the source of income )
2. Firm/Company:
Identification:
- Firm/Company Registration Certificate
- PAN/VAT Certificate
- Article of Association (AOA) and Memorandum of Association (MOA)
- Partnership Deed
Income Source:- Audited financial statement of the last 2 financial years
- Latest tax paid receipt or tax clearance certificate
- Photograph (2 copies)
- Citizenship and/or Passport
- Relationship Certificate (if applicable)
- Marriage Certificate (if applicable)
- Bank statement of at least 6 months
- PAN Certificate of the individual (for Loan amount above NPR 5 million)
- Salary certificate
- A rental agreement along with tenant’s identification (if rental income is the source of income )
- Firm/Company Registration Certificate
- PAN/VAT Certificate
- Article of Association (AOA) and Memorandum of Association (MOA)
- Partnership Deed
- Audited financial statement of the last 2 financial years
- Latest tax paid receipt or tax clearance certificate.