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About Mahindra Car Finance
In today’s times, buying a car has become more of a necessity and less of a luxury. Often, we end up looking at the price and affordability for buying something which commands such a huge outlay. This could potentially lead to significant compromise from the perspective of reducing the outflow of funds. With financiers like Mahindra Finance, this compromise need not be undergone. Mahindra finance extends car loan for both new and old cars, the potential buyer has to choose the car of his suitability and avail Car Finance to drive home his dream car.
Mahindra finance was established in 1991 as Maxi motors financial services limited. By the year 1992, they changed their name to Mahindra Finance and operated as a subsidiary to Mahindra and Mahindra financial services limited which had already become a name to reckon as a rural NBFC in India. The vehicle financing wing extends credit to auto and utility vehicles including tractors, cars, commercial vehicles, construction equipment. Both personal and commercial vehicles are covered under their Car Finance schemes. Also, the credit is extended to new and used cars. Mahindra finance has become quite popular especially in the used car finance segment primarily in the semi-urban regions of India.
Mahindra Car Finance has customized its products and services such that the entire process is seamlessly completed without any hassles. They are particularly designed to meet the needs and requirements of potential borrowers in the semi-urban and rural areas. Although, Mahindra finance can be availed for high end cars as well, they position themselves more strongly among the middle-class segment. Their presence in this segment is significant. Some of the key features of Mahindra Car Finance are listed below –
Given these features, Mahindra finance has been able to consistently grow its market share in the car loan space. Before availing a loan from Mahindra finance, there is a need for the potential borrower to check for eligibility.
The eligibility criteria for applying a car loan with Mahindra finance is quite simple. The criteria are discussed below –
Car loan can be applied for both new and used cars. Salaried and self-employed individuals and farmers can apply for the loan. Farmers are allowed to apply for vehicle loans pertaining to agricultural vehicles such as tractors, trucks etc. Car loan eligibility can differ slightly based on the credit score, existing EMI burden, income levels, age etc.
Once the potential borrower has checked for eligibility, the borrower has to ensure that the documentation is done appropriately. This is considered one of the most important steps before the loan is sanctioned and disbursed.
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 Mahindra Car Finance is similar to that of other car financiers. They are broadly categorized as requirement for salaried employees, self-employed and businesses (companies).
Documentation for Mahindra Car Finance
The documentation required for availing car loan finance is different for different type of applicants. The document requirement for salaried is different from that of self-employed, company, primarily due to the difference in source of income and type of tax returns submitted.
The loan application should be filled completely and submitted along with the below mentioned documents for loan processing. The approval of loan will enable loan sanction and disbursement. Below is the list of documents that need to be submitted, only the income proof would vary based on the type of income tax returns and tax registrations –
Identity proof – PAN Card, Aadhaar Card, Passport, Driving License, Voter’s ID Card or any other document issued by Government of India
Age proof – Birth certificate, Adhaar Card or 10th / 12th school certificate
Address proof – Ration card and utility bills like telephone and electricity bills
Income proof – Last 3 months’ salary slip and bank statement, and Form 16 or ITR (for salaried)
ITR (last 2 years), Tax registration certificate, Trading license / partnership deed / company registration document (as applicable), Bank statement for past 3 / 6 months (self – employed / company)
Apart from the above passport size photos may be required for further loan processing. These documents can be submitted online or physically at the nearest Mahindra finance outlet or with the dealer who has exclusive tie-up with Mahindra finance.
EMI can be calculated online, Mahindra finance’s website has an inbuilt calculator where the potential borrower can enter details such as quantum of the loan, personal details (name, age, income, type of employment), preferred tenure etc., the EMI based on the above details will be projected.
Apart from this, there are many other websites which will provide the EMI calculator. In fact, the car dealer’s website will also have a basic EMI calculator. There are also other aggregator websites such as Credit Mantri which will provide the EMI of various lenders and the potential borrower can choose the one which offers the most lucrative Interest rates.
There are many factors which determine the interest rates on the car loan. The tenure of the loan, credit score of the individual, loan value, type of income, income levels and the prevailing market interest rates are the key detriments. The borrower can avail loan for a period of 5 years, there are periodic festive offers extended by Mahindra finance from time to time. A borrower can avail such offers to lock in attractive interest rates.
The loan approval is done after the documentations are correct and loan application is complete. The customer can either avail e-approval by submitting the application and documents online or by physically submitting the application and documents in the nearest Mahindra finance outlet.
In some cases, the loans are pre-approved, especially if the borrower has a very good credit score and has income which can easily manage the EMI on the loan value.
After the approval is in place, the disbursement of the loan happens within 48 hours, the car is delivered to the buyer. The EMI is commenced immediately from the subsequent month. The vehicle registration copy, invoice copy and insurance policy of the vehicle is retained by Mahindra finance. This will be duly given back to the buyer after the loan is settled in full.
Owning a dream car is no longer a far – fetched dream, Mahindra finance brings to its customers customized solutions which will enable the common man to fund his dream car.
1. Is collateral required for car loan with Mahindra finance?
No, the asset purchased (underlying car) will be the collateral after the loan sanction until the loan is completely paid off
2. What are the documents required for loan termination?
The following documents are required for loan termination –
3. Does Mahindra finance extend loan for new cars and used cars?
Yes, Mahindra finance extends car loans for both new and used cars.
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