Are you aware of the latest news pertaining to loan borrowers in India? Well, the RBI has of late declared a cut in the prime lending rate. This is a very good news for the prospective borrowers in India. It is by virtue of this cut in the lending rate that you shall be able to procure loan in India at cheaper rates. For your information, banks like the Punjab National Bank, Syndicate Bank, UCO Bank etc., have already cut down the lending rates in response to the declaration of the RBI. The slash has already come into effect from November 8, 2008.


If you are wanting to purchase a car and have firmed up to apply for a car loan in order to reap the benefit of the slash in the rate of interest, just ensure that you are at least 21 years old. Under any circumstance you shall not be eligible to procure a loan for purchasing a car in India, if you are below the prescribed age. The other important criteria that every applicant must fulfil are that an Individual must be a salaried or self employed, the borrower's income must not be less than Rs.1,00, 000 annually.


Normally, a car loan borrower can expect at least Rs.1 lac for a new car and Rs. 75,000 in case of a pre-owned car. However, if you do a bit of research before firming up the lender you may end up with a better deal. The repayment period of a car loan would very form 1 to 7 years. Although, the date of monthly repayment in instalments depends on the date of disbursement of the loan the instalment date is normally the 5th and 10th of every month. You may be interested to pay off the instalments via post dated cheque. And you can do the same, but you have just got to ensure that your check does not bounce otherwise one will have to bear the penalty in terms of higher fee.