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Cholamandalam finance

About Cholamandalam Finance

Cholamandalam Finance company was established as Cholamandalam investment and finance company limited in the year 1978. It was founded as the financial services arm of Murugappa Group.

Cholamandalam Finance has been engaged in providing car loan facility to its customers for over 20 years. It has provided a helping hand to many customers in owning their dream vehicle. The types of products available within this type of finance are – Two-wheeler loans, commercial vehicle loan, tractor loan, car & multi-utility vehicle loans, construction equipment loans.

This article focuses on availing car loans from Cholamandalam Finance.

Car Finance – Key features

Chola Finance provides finance for all types of cars including hatchback, sedan, special utility vehicles etc., The key features which are uniform across all vehicle finance including cars are mentioned below –

  • Loans are available from INR 1 Lakh
  • Loans are available for both new and used vehicles
  • Motor insurance, life insurance and personal accident cover can be availed from Chola Finance
  • Relationship managers are trained to help at every step of loan requirement

Individuals can avail a loan for even luxury cars such as Audi, Mercedes, BMW etc., based on their ability to qualify to avail such loans. However, the borrower needs to check for Chola Finance Car Loan Eligibility before applying for a car loan to purchase any car.

What are the criteria for Chola Finance Car Loan Eligibility?

This section looks at the eligibility criteria for availing a car loan from Chola Finance. Chola Finance has categorized its loans based on the value of the car. The categories include car value up to Rs. 10 Lakh, Car loan up to Rs. 10 lakh – Rs. 20 lakh, car loan above Rs. 20 Lakh. The qualification criteria for Chola Finance Car Loan Eligibility is different for individuals with salaried income and business income. The criteria for each of these segments are briefed in the tables given below–

Car value up to Rs. 10 Lakhs

CategoryCar value up to Rs. 10 Lakh
SalariedAge Range21 – 75 years
Employment requirementMinimum 3 years
Minimum SalaryGross income Rs. 2 Lakh
Loan to valueMaximum 90% car Value
Self - EmployedAge Range21 - 75 yrs
Employment requirementMinimum 2 years
Minimum Business incomeGross income Rs. 1 Lakh
Loan to valueMaximum 85% car value

Car Value in the range of Rs. 10 – 20 Lakh

CategoryCar Value in the range of Rs. 10 – 20 Lakh
SalariedAge Range21 – 75 years
Employment requirementMinimum 3 years
Minimum SalaryGross income Rs. 5 Lakh
Loan to valueMaximum 90% car Value
Self - EmployedAge Range21 - 75 yrs
Employment requirementMinimum 5 years
Minimum Business incomeGross income Rs. 3.5 Lakh
Loan to valueMaximum 85% car value

Car value of Rs. 20 Lakh and above

CategoryCar value above Rs. 20 Lakh
SalariedAge Range21 – 75 years
Employment requirementMinimum 3 years
Minimum Salary Gross income Rs. 10 Lakh
Loan to valueMaximum 90% car Value
Self - EmployedAge Range21 - 75 yrs
Employment requirementMinimum 7 years
Minimum Business incomeGross income Rs. 5 Lakh
Loan to valueMaximum 85% car value

Once the eligibility has been established, there is a need to understand and segregate documents required for application of the car loan for the desired car from Cholamandalam Finance.

What are the documentations required for Chola Finance car loan?

Documentation has been one of the most tedious aspects of any loan application, the intervention of technology has eased this process considerably, by uploading the loan application and documents on the website of the bank / NBFC, one can get e-approval for the loan.

Below is the list of documents requirement for availing Chola Finance car loan –

  • Passport size photo of borrower (the vehicle will also be bought/registered in same person’s name) – 3 Nos.
  • Self – attested address proof – Property document / rent or lease agreement, Adhaar card, Utility bills (Telephone bills, electricity bill), Driving license, Passport
  • Self – attested identity proof – Adhaar card, Voter’s ID, Driving License, PAN Card, Passport, sales tax registration certificate, employee ID issued by company etc.,
  • Income proof for salaried individuals - Form 16 or IT returns (as applicable) for past 2 years for salaried employees / 3 year IT returns or payslips for last 3 months for self-employed professionals
  • Income proof for partnership firm - Latest Sales Tax Assessment Order, Partnership Deed, identity proof of signing partners, and ST registration Certificate
  • Income proof for limited company - ST Registration Certificate, MOA and AOA (Memorandum of Association and Articles of Association), and identity proof of signing directors
  • Self – attested bank account statement / Pass book copy pertaining to last 6 months

These documents have to be submitted as applicable along with the car loan application. The application will be available with the respective bank / NBFC or dealer (the dealer is likely to have tie-up with certain banks / financial institutions where the approval / processing could be expedited). It is important to understand the specific features / benefits associated with car finance extended by Chola Car Finance.

Features and Benefits of Chola Car Finance?

A borrower should be aware of the key benefits /advantages that can be availed from the financier. Following are the features and benefits associated specifically for Chola Finance car loan.

  • Flexi-payment options – The repayment tenure ranges between 12 – 84 months. This provides sufficient time to spread out the monthly payments. Repayment can be made by means of post-dated cheques, the overdue of loans can be cleared by means of Paytm as well. Change in repayment mode can be made by paying a meagre Rs. 500 as swapping charges
  • Higher quantum of finance – Cholamandalam Finance provides up to 90% of car value as finance for cars which is a high quantum of finance, this holds true for high-end cars as well where the car value can be significantly high
  • Accessories coverage – The car accessories and gadgets pertaining to all cars including luxury cars are included in the car finance extended by Cholamandalam Finance. This is an excellent / most sought after feature considering that the accessories and gadgets can be expensive
  • Expedited documentation and loan processing – once the eligibility for the car finance is established, the documentation and loan processing are expedited by Chola Finance

Chola Finance is known to deliver the best service and experience for the customers. Typically, well known financial institutions are involved in providing finance for these high-end cars. Cholamandalam Finance is a well-known financier in the vehicle loan segment and particularly caters to the luxury car segment with high operational efficiency.

Cholamandalam car finance is provided in easy, convenient and flexible mode with minimum documentation. Relationship manager would guide the borrower through the process. The car will be delivered to the buyer upon disbursement of loan after sanction. The financier will collect a copy of the vehicle registration certificate, invoice and insurance policy. Most financiers including Chola Finance provides insurance to cover any damages caused to the vehicle, owner and third party. Loan cancellation can be initiated by informing the financier at charges applicable for such cancellation.

Charges and fees applicable for Chola Car Finance

There are multiple charges applicable for car finance extended by Chola Finance, the rates are similar for all types of cars. Further, there could be slight variation among various financiers, but broadly they remain within the ranges specified.

Type of chargeCharges
Part payment chargesUp to 2% of part payment amount
Full repayment chargesAfter 24 months - 1.5% of outstanding loan; before 24 months - 3% of outstanding loan
Documentation chargesRs. 350 - Rs. 500
Agreement changeUp to Rs. 2500
Loan cancellationUp to Rs. 5000

There may be other fees and charges applicable such as interest penalty on default payments, change or addition of guarantor, stamp duty charges etc.

Summary

  • Chola Finance extends up to 90% of car value as loan
  • There are various eligibility criteria applicable based on the car value
  • After eligibility, the buyer should approach the financier (lender) with necessary documentation
  • Various charges and fees are applicable for car finance extended by Chola Finance
  • Motor insurance, life insurance and personal accident cover can be availed from Chola Finance

Owning your dream car is no longer a far-fetched dream, there are various financiers including Cholamandalam Finance which extends specific benefits and advantages for financing of car purchase.

Chola Finance FAQs

1. Is there a requirement of additional collateral / guarantee?

In most car loans, there is no requirement for additional collateral / guarantor. The car purchased will be hypothecated until closure of the loan

2. How can one apply for car finance through Chola Finance?

One can apply by walking into any branch of financial institutions (Banks / NBFCs) including Cholamandalam Finance. One can either do this offline by physically filling and submitting documents or by submitting documents online.

3. What is the maximum limit of loan that can be availed?

Car finance is available to the extent of 90% of car value with Cholamandalam Finance

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