Step-by-Step Guide: Getting a Car Loan Approved Through an App

The process of financing the car has been digitalised making it an easier task for the borrower. Car loan applications are constantly reshaping our necessity to borrow. In today’s time loans for cars that are provided through smartphone apps have become the most popular means of borrowing. This guide will assist you in getting a loan against a car and its approval process through an app.

Step 1: Research and Choose the Right Car Loan App

Start by exploring different car loan apps available in India. Look for apps that offer:

• Competitive interest rates
• Flexible repayment terms
• Good user reviews
• Quick approval processes
• Transparent fees

Some popular car loan apps in India include the Tata Capital Loan App, ICICI Loan App, and Fibe App.

Step 2: Install the App

When you have selected a car loan app, go to the app store on your device. Search for the app that you want by typing in its name. Click to download the app and be aware that you may need a strong internet connection for the full installation process.

Step 3: Create Your Account

Open the application and register an account. You will normally have to input:

• Full name
• Phone number
• Email address
• Create a secure password

Note: Some applications may demand extra information, like a PAN number or an Aadhaar number.

Step 4: Fill Out the Loan Application

Now, the main part comes i.e. filling out your loan application. The car loan app will present you with a series of questions one by one to get your basic details and information like:

• The amount you want to borrow
• Your preferred loan tenure
• Your monthly income
• Employment details
• Address information

Step 5: Upload Required Documents

To process your car loan application, the app will ask few documents to upload, which are as follows:

• Proof of Identity (PAN card, Aadhaar card, passport)
• Proof of Address (utility bills, rental agreement)
• Income proof (salary slips, bank statements)

Most car loan apps let you do this easily, simply by taking photos using your smartphone camera.

Step 6: Choose Your Loan Terms

Based on the information you’ve given, the car loan app will present you with some loan offers such as:

• The highest amount of money that you can borrow
• Different interest rate options
• Various tenure to repay

But before you decide, you will need to spend some time comparing plans. A longer term yields smaller monthly payments but more interest in total. Select the plan with repayment terms that suit your financial situation.

Step 7: Submit Your Application

Once you have determined the loan terms that are right for you, it’s time to apply! Generally, there is a “Submit” or “Apply Now” tab to choose on the car loan app. Take one last quick scannable review of your application before submitting it!

Step 8: Wait for Approval

After submission, you have to wait. But not for long because most car loan apps in India give fast approvals and some even provide instant decisions. Look for app notifications and your registered email to know your application status.

Step 9: Accept the Loan Offer

If your car loan application is approved, you’ll get a formal loan offer presented to you via the app, which will have:

• Loan amount processed and disbursed
• Interest rate
• Repayment schedule
• Any additional fees or charges

Review this offer carefully. If you’re ok with it, accept the offer on the app.

Step 10: Complete the Verification Process

After accepting the offer, there might be a final verification step. This could involve:

• A video KYC (Know Your Customer) process
• A quick call from the lender.
• An in-branch visit (but this is decreasingly common with digital lending)

Step 11: Receive Your Funds

After completion of all the verifications, the loan will be disbursed. In case of a new car loan, it will be directly sent to the dealer or in case of a loan against a car, usually, it is transferred to your linked bank account.

Tips for a Smooth Car Loan App Experience

The following are several tips that might help you get a smooth car loan app experience:

1. Have your papers ready when you start the application process.
2. Ensure that your credit score is healthy to maximise the chances of getting approval.
3. Try to compare the various offers from the car loan apps which will lead you to the best deal.
4. Read the fine print carefully, especially regarding prepayment penalties and processing fees.
5. Don’t apply for multiple loans together as lenders consider you as a high-risk borrower and it can bring negative effects on your credit score.

Conclusion

Getting a car loan in today’s digital era is quick and convenient. Remember, a car loan is a significant financial commitment. You can train yourself to use the car loan apps efficiently with this guide. Choose the loan amount and tenure that suits your budget fine. You can take the app to facilitate your loan faster, you just need to be a wise borrower.