Here's a comprehensive guide to closing a car loan.

• Step 1: If the loan hasn't been fully repaid, you must pay the bank your outstanding debts.
• Step 2: The bank or financial institution will provide form 35, the No Dues certificate, and any unused checks.
• Step 3: Your present RC will state that the lender owns your automobile, so you will need to travel to the RTO to receive a new one. (It is referred to as hypothecation)
  The following documentation must be gathered before you visit the RTO:
  Bank NOC, copy of your PAN Card, copy of your active automobile insurance, original RC, address proof, and copy of PUC Certificate. Original Form 35, and copies signed by the registered owner and the bank/lender.
• Step 4: After completing the process at RTO, a new Rc will be issued stating you are now a true owner of the vehicle. This way your car loan will be closed, Congrats!!

Here is the document checklist required by banks or lenders to initiate a car loan.

• Proof of age
• Identification proof
• Application form
• Passport size photograph
• Proof of residence
• Income proof
• Bank statement
• Signature verification proof
• Pro-forma Invoice or Rate List

Here are the main factors to think about when applying for a car loan.

1. Interest Rate: Choose the loan with the lowest interest rate.
2. Additional Fees: Before applying for a loan, it's crucial to look into processing fees, prepayment penalties, and late payment fees.
3. Tenure and Maximum Loan Amount: Get a lender who offers you a loan that you can afford.
   -If the maximum loan amount is less, you will need to pay extra cash upfront to purchase the vehicle.
   Furthermore, your monthly installment amount will increase if the Tenure is lower.
4. Eligibility: In comparison to NBFCs or other financial institutions, banks may have higher eligibility standards.

The maximum loan amount you are eligible for when purchasing a new car is determined by two key variables.

1. Car Value: The majority of banks and lenders will lend up to 90% of the on-road price or 100% of the ex-showroom price of the vehicle.
2. Income: Generally speaking, you can obtain a loan equal to three to four times your gross annual income. Therefore, if you make 5 lakh rupees a year, you may get a maximum loan of about 15-20 lakh.

In general, the down payment for an automobile will be at least 10% of its value. Some banks and lenders provide auto loans up to 90% of the on-road price.

However, certain banks or lenders provide car loans up to 100% of the ex-showroom price. To avail such offers, you will need to pay the difference between the on-road and ex-showroom prices as a down payment.