Quick Summary
Typically, the car loan journey includes stages like application submission and eligibility assessment, documentation process, credit evaluation, loan approval and agreement completion and disbursement to the dealer. Once you receive the car, your EMI payments will begin according to the loan plan that you have chosen.
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Introduction
Buying a car is a structured process which involves financing, along with understanding the entire loan journey, since it will help you avoid delays and confusion. It is important for you to know what exactly happens once you apply for a loan, from the point of your application form to the vehicle delivery. If you are aware of the entire process, you will know what to expect and it will help you be more prepared for your loan.
Step 1: Choosing the vehicle and exploring finance options
Your car loan journey begins at your research stage, either in the dealership or research online. This stage is most crucial in the entire process since you select a car based on your budget and affordability. Only when you have selected a car, can you get an idea on your expected EMI and down payments, to plan your finances accordingly.
At this stage you can:
- Estimate your loan amount and EMI
- Compare different loan options across multiple lenders
- Compare and decide tenure options.
Step 2: Loan Application Submission
Once you decide on a car, you can go ahead and fill out the application form that is available on our website. This form requires you to fill out basic personal, employment, and vehicle details that will help us understand which type of loan you are interested in.
Step 3: Get a call back from our executives
Once you submit the application, you will be getting a call back from one of Mahindra Finance’s executives.
During this interaction:
- We will confirm all the details that you have filled out.
- We will discuss all your loan requirements.
- We will be answering all your queries and provide guidance on what the next steps are.
- You will be told about all the documents that you are required tosubmit to move ahead with your loan process.
Step 4: Documentation submission and verification
In this step, you are required to submit all the documents needed by us for verification and approval of your loan request. Documents can include:
- Identity proof
- Address proof
- Proof of employment and income
- Bank Statements
If you submit all these documents, it makes your loan approval process simpler and helps us understand your eligibility.
Step 5: Eligibility Evaluation
Once you submit your documents, we check your eligibility and repayment capacity to determine interest rates and EMI. We do so by assessing your income stability, credit history, already existing loans or other financial obligations, how much loan amount you are looking to get, the price of the vehicle and the Loan to Value ratio and your overall financial profile.
Step 6: Loan Approval and Agreement
Once your eligibility has been confirmed and your loan gets approved, you will receive a loan sanction mentioning your approved loan amount, agreed interest rate, the complete loan tenure, your EMI amount along with other additional agreement charges. The borrower then signs the loan agreement, which outlines all the repayment terms and conditions. This ensures transparency throughout your loan tenure.
Step 7: Loan Disbursement and Vehicle delivery
The loan amount is directly disbursed to the vehicle dealer. The borrower pays the down payment amount along with other registration charges and completes the registration process. The vehicle is then delivered to you, your loan account becomes active and your EMI payments begin as per your agreement.
Conclusion
It is important for borrowers to know the car loan process, starting from enquiry to loan approval to vehicle delivery. Once you know exactly what the process is, along with everything that you need for your loan to be approved, you will have a smooth loan approval without any obstacles or confusions. At Mahindra Finance, we streamline each step from documentation to disbursement to ensure you get behind the wheel of your dream car without any stress. This will make car ownership a hassle-free process.
Frequently Asked Questions (FAQs)
Q1. What happens after i apply for a car loan?
Once you fill a car loan application form, you typically receive a callback from the executives, understanding your financial profile, to move forward with the loan process.
Q2. Do i need to visit a branch to apply for a car loan?
No, application forms are available online as well.
Q3. How long will my car loan approval take?
Approval time depends on document verification. If you have submitted all the required documents correctly, and if you are eligible for the loan, your loan approval will take a few working days.
Q4. When do EMIs start?
EMI payments start once your loan has been disbursed to the dealer and your vehicle has been delivered to you.
Q5. Can I track my car loan application status online?
Yes, once you apply via the Mahindra Finance website, you can track your status using your application reference number or by coordinating with the executive assigned to your file.
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