Smart Finance Services-Car

• Document Collection
• File Login
• Field Verification
• Approval
• Agreement
• Disbursements
• Delivery of Car
• Required documents:
• For Salaried Individuals:

CIBIL stands for "Credit Information Bureau of India Limited". Incorporated in 2000, CIBIL is a credit-rating to facilitate approval of loans to individuals and companies. It provides comprehensive credit information report (CIR) for commercial and consumer borrowers. A good COR reflects a good payment history derived from past payments, existing credit line and sources of income. Further detailed information can be found at https://www.cibil.com

• Negative Field Investigation.
• Incomplete Documentation.
• Invalid Document.
• When the customer doesn't meet credit worthiness parameters of the issuing bank.
• Defaulter list of CIBIL.
• Discretion of Loan Sanctioning Agencies.

• Depending on the bank, customers have an option of going in for Floating or Fixed Car Loan Rate. Fixed Rate as the name suggests offer fixed rate of interest on a reducing basis. The rate remains fixed during entire tenure of loan. Floating Rate move downwards when general interest rate registers a fall and move up when general interest rates move up.
• Customers should clarify with bank before availing any of the options.
• Fixed Rate of Interest with all private finance institution and floating rate of interest with PSU banks.

Interest rate will be decided by the bank based on the customer profile and their financial stabilities (Loan Amount, EMI and Tenure).

It is the difference between the Price of the vehicle and the Total Amount Paid by the customer upfront.

Field Investigation is done by bank representative to verify the contact point of the customer. Customers should ensure that he is present &co-operate during investigation to enable positive FI. FI has to be compulsorily positive for the loan to be sanctioned.

• Ensure documents submitted are complete with proper authorization & signatures at all required places.
• Proof of Current Address along with Permanent Address is provided.
• Presence at the Address during Field Investigation.

Not possible with private banks but only nationalized banks provide this option.

Since hypothecation status name of financier gets updated on your Registration Certificate (RC), it is necessary to get an NOC from financier (Form 35) to facilitate removal of hypothecation status from your RC. This change in vehicle ownership status will enable you to sell your vehicle with all necessary documentation. The new owner can also re-register the vehicle without any issues.

Foreclosure is a term stating pre-closure of loan before the Total Loan Tenure. Banks generally attach a service charge to enable foreclosure.

Private Banks charge anywhere between 4-5% outstanding principal amounts, nationalized banks charge Nil. The changes are subject to review periodically; please clarify with your bank during loan sanctioning process.

Switching of loan to a different bank is not permitted as per the current financial regulations relating to vehicle loans.