Car Loan For Pensioners
Many banks and financial institutions provide car loans specifically designed for pensioners and retired individuals who desire to acquire their car. For example, Axis Bank Car Loan and United Bank car loan scheme for pensioners. These dedicated car loan schemes for pensioners help them to avail themselves of a car loan hassle-free and with a nominal monthly financial burden to take up. Moreover, it is relatively simpler to secure these car loans and repay them within the agreed period. Some excellent car loan schemes can help pensioners to get a car without the stress of taking on a considerable debt, which might make them prey to a debt trap.
The terms and conditions associated with the car loan and the eligibility criteria may vary from one lending institution to another lending institution depending on some factors. Therefore, it is very crucial to read the fine print minutely before drafting the car loan application. Though car loans are not very troublesome, it is still better to look at every tiny detail about them to avoid any future inconvenience. These are the best deals for people who have recently retired from their jobs or for pensioners.
United Bank has come up with a specialized Car Loan scheme for the pensioners where the purpose is to furnish financial assistance to those retired people who desire to buy a car of their own that are not older than four years. Pensioners already have many financial hurdles to face, like meeting day-to-day expenses or providing funds for kids education or marriage. Many need to sacrifice their dream like buying a car for these financial constraints. That's why the United bank has taken the initiative to fulfil the aspirations of retired aged people.
The Eligibility requirement for this car loan scheme is almost similar to that of others except for some. The pensioner must be a retired person of Central or State government or any undertaking of these or from defense services, educational institutions, or reputed companies or any other public sector undertaking. In addition, they must draw a monthly pension income of a minimum of Rs 20,000 as a pensioner.
The net income of the spouse of a pensioner will be taken into account for the calculation of total net income as well as the stipulated EMI in case the spouse has already taken up a car loan. This is only important when the spouse is a co-borrower in the subsequent loan taken by the pensioner. The monthly instalments of the car loan can be realised from their wages or pensions. This car loan scheme can also be obtained along with the pensioners working daughter, son or spouse. But family pensioners are not allowed to get the benefit of this United car loan scheme. Additionally, the loan amount must be repaid within the stipulated time and before the pensioner attends 75 years.
The loan amount can be sanctioned to the maximum limit of Rs 10 lakh with a margin of 15% of the value of the on-road price of the four-wheeler if it is a new car and second-hand car 25% of the value of the four-wheeler. The processing charges are also not so heavy and take 0.59 % of the entire loan amount borrowed. The maximum processing charge can be Rs 11800, and the minimum can be Rs 600.
The interest rate of this car loan scheme is 9.5% per annum, and the loan repayment period is extended up to 72 months. There is another option where the interest per cent goes to 9.9% per annum to be reimbursed within just 48 months. The option of 72 months is for people taking a car loan for a new car and 48 months for opting for a car loan for used cars. There are no prepayment charges on this car loan and the penal interest attached to it, and the penal interest is just one percent per annum on the instalment amount.
Also read this: When to Use your Credit Card during an Emergency