On the way, you may have thought, if you had a car! A car is no longer a luxury, it has become a necessity. There was a time when the dream of a car required a lot of hard work. Still, the dreams of some remained elusive. Now that day is gone. The bank is taking responsibility to fulfill your dreams.
With simple terms and moderate interest rates in easy installments, car-loans are now at the doorstep of the customer. You don’t have to run behind the bank to get a car loan, the bank will come to you. Not only banks but also financial institutions are now giving loans to buy cars. Banks and financial institutions are providing loans for both new and old vehicles. Youngsters are becoming more interested in car loans as there is no hassle in taking loans.
Loan amount: The bank is providing half of the cost of the car. Before 2014, the car-loan ratio was 70:30, now the loan ratio has increased to 50:50. That is, earlier the bank could give a loan up to 30 percent of the car price. But now banks give maximum loan up to 50 percent.
Interest rate: Bank Asia Officer Ariful Alam Khan said, “We provide loans for both new and old vehicles for the convenience of our customers. The rate of interest on this loan, repayable in equal installments, is 12 percent”.
Non-bank financial institutions Lanka Bangla Finance, IDLC Finance are offering car loans. The interest rate on this loan is 11.75 percent for individuals and 11 percent for institutions. IDLC Finance Limited provides loans for purchase of both new and used cars. Loans up to 70 percent of the car’s value are given to customers. IDLC Finance charges an interest rate of 11.5 percent to 12 percent. This interest rate can be lower or higher depending on the conditions.
Eastern Bank 11%, Dutch-Bangla Bank 14%, Dhaka Bank 12%, Trust Bank 11% provide car loans. Besides, Social Islami Bank, Exim Bank, and even Islami Bank also provide loans for buying cars. Social Islami Bank offers loan for car purchase at 13 percent interest rate. City Bank provides loans to customers on easy terms at an interest rate of 11.50 percent. However, this loan is applicable only for new cars.
Loan amount up to Rs.: City Bank provides car loan to customers from Rs.3 lakh to maximum Rs.40 lakh and Bank Asia provides car loan from Rs.3 lakh to Rs.30 lakh to customers. Trust Bank is providing loans from 2 lakhs to 20 lakhs.
Who can get a loan: Businessmen, employees, or institutions can take a car loan. But in this case the amount of monthly income is seen. City Bank, Mutual Trust Bank are giving car loan only if the monthly income is 30 thousand taka.
Repayment Mode: Car loan to be repaid within 5 years. This loan is repayable in equal installments.
Loan Process: Getting a car loan does not require much hassle. Banks and financial institutions are now tying up with car dealerships themselves to provide convenience to customers. The bank approves the car loan within 7 days of submitting the required documents.
Banks are now more interested in small consumer loans than large loans. Because these loans can be easily recovered. So now banks and financial institutions are focusing on providing small necessary loans like car loans.
