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Honda is one of the most preferred sedan cars, it has captured a significant market share in India. The manufacturer has consistently re-defined their designs and technology to match the ever-changing needs of the potential buyer. Honda cars are viewed as ideal family car, which offers enough space and friendly features. Honda cars have gained the reputation of being durable, fuel – efficient and reliable. Honda cars range from hatchback and sedan models - Honda Brio, Honda City, Honda Amaze, Honda Mobilio and Honda CR-V. Honda opened its car finance wing which has helped reaching out to a wider set of customers over the past few years. The Honda Car Finance is extended to all types of Honda cars.
Finance extended for Honda cars are available at Honda Car Finance. The interest rates on the loan are attractive and competitive. Honda Car Finance is also extended with flexi-payment option which enables the borrower to pay back the finance as per convenience.
There is a need to specifically mention the Honda finance car loan interest rates, since they are highly competitive. The interest rates typically range between 10% - 15%, the rates are deduced based on the tenure of the loan, car type and the loan amount availed. The interest rates are finalized based on the market interest rates, there is always slight room for negotiation. The borrowers are extended the most competitive interest rates. There are few criteria which determine the interest rate for car loans. Here is an overview of the criteria based on which interest rates are determined –
Income levels – The income levels determine your qualification / eligibility for any particular car loan. It is also a key determinant of the competitive rates that the financier would extend to the potential borrower. The higher the income levels, more comfortable the borrower would be in repaying the EMI (Equated monthly installments).
Credit score – Credit score indicates the credibility and the promptness with which the individual has paid his loans / credit card dues in the past. The higher the credit score, the possibility of loan approval is higher. Further, a higher credit score also helps in the borrower getting a good bargain on the interest rates extended at Honda finance on the car to be purchased.
Debt – to – income ratio – Existing loans and the budget / net earnings of the potential borrower will help determine the credit worthiness of the individual. In case of a company, the balance sheet will be carefully studied to ascertain if there is high leverage. If there is high loan attached to the individual / company, the interest rates could be spiked for such individuals since they become high risk loans from the perspective of Honda finance.
New car vs. used cars – Honda finance extends loans for both new cars and used cars, the loan value for new cars is stipulated at 85% of car value. For used cars the loan value will be slightly lower. Further, most competent interest rates are available for new car loans. For used car loans, the interest rates could be slightly higher, since the mortgaged asset (in this case used car) could depreciate rapidly and Honda finance (the financier in this case) may not be able to recoup the outstanding loan value.
Loan tenure – The loan tenure can be between 12 months – 60 months, with a flexi-payment option where the borrower can swap the tenure as per convenience at a cost.
Loan amount – The quantum of loan will determine the interest rate on the loan availed. If the loan value is significantly high, then the interest rates would be higher compared to a loan with lower value.
Honda Car Finance has very less eligibility criteria, the borrower has to check for these basic criteria before applying for the loan. The potential buyer, typically chooses the car and based on the requirement may choose the quantum of loan based on the funds available with him / her for down-payment.
Car value up to Rs. 10 Lakhs
The potential borrower can either visit the nearest dealer and fill out the loan application form and submit the documents required physically. This very same facility is available online as well. The e-loan application can be filled-in and the documents can be uploaded, the borrower will be notified of e-approval on his / her loan. A representative may then get in touch to verify the original documents for their correctness etc.
Documentation is often considered the most crucial part for availing any type of loan including car finance. The intervention by technology has enabled simplification of the process to a large extent. The documentation required for Honda Car Finance is similar to that of other car financiers. They are broadly categorized as requirement for salaried employees, self-employed and businesses (companies).
Documents required for salaried Individuals
Documents required for Self-employed
Documents required for company
There are benefits of availing Honda Car Finance, two of the key benefits are the competitive interest rate and the flexi payment option. The loan processing is easy, convenient and flexible with minimal documentation. On disbursement of loan after sanction, the car would be delivered to the buyer. The financier (in this case Honda finance) would collect the copy of vehicle registration certificate, insurance policy and invoice. This essentially means that the until the borrower pays off the loan value completely, the underlying asset (in this case Honda car) will be mortgaged with the financier (Honda finance).
Many charges are applicable for processing the loans, including car finance extended by Honda finance. Although, these are standard across all financiers, there could be slight variations based on the State in which the dealer is operational.
There are other charges such as stamp duty, road tax, loan cancellation charges, loan swapping charges etc., These could vary based on the financier and the State in which the dealer is operational.
Honda cars are the most preferred cars among Indian families, the advent of Honda finance has enabled the company to expand its outreach considerably.
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