Drive With These Instant Car Loans

Drive With These Instant Car Loans: Looking to buy a car? Check out these hassle-free Car Loan offers with no paperwork that is sure to get your engine purring.
A Car Loan will help you turn that dream into a reality. Although most loans require you to submit a bunch of paperwork that makes these loans seem unattractive, there are a few Car Loans that require no paperwork � they�re instant! So, you no longer have to print documents or even stand in long queues at bank counters to submit these documents.

Here are a few paperless-approval Car Loan and Used Car Loan offers available:

HDFC Bank Car Loan

Getting a Car Loan from HDFC bank has many benefits.

• Interest rates starting from 8.40% and can go up to 10.35%, fixed rate of interest
• No guarantor required for this loan
• Avail a top-up loan facility on it
• Part-payment is available
• Loan-to-value ratio (LTV) � 100% of the ex-showroom price of the vehicle

The processing fee can go up to Rs. 4,720 (one-time fee). The minimum loan amount you can avail is Rs. 1 lakh for a tenure of up to 7 years.

TVS Credit Used Car Loan

If a used car is on your mind and your monthly income is Rs. 15,000 or above, then you can apply for the TVS Credit Used Car Loan.

• You need to be between the age of 21 and 65 to apply for this loan
• You won�t need a guarantor for this loan
• Top-up loan facility is available
• Interest rate range � 13.1% to 15%, floating rate of interest
• The pre-closure fee is applicable

The processing fee applied to this loan is Rs. 999 (plus applicable taxes). The minimum loan amount you can avail is Rs. 20,000 and the maximum loan amount is Rs. 10 lakhs. The repayment tenure is up to 5 years.

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HDFC Bank Used Car Loan

Another stunner from HDFC bank is its Used Car Loan that offers e-approval and part-payment facilities and requires no guarantor.

• Interest rate range � 12% to 15.5%, fixed rate of interest
• LTV � Up to 80% of the cost of the vehicle
• Salaried individuals within the age group of 21 to 60 years are eligible
• Self-employed individuals within the age group of 25 to 65 years can apply for this loan
• Salaried folks must have at least 2 years of work experience with a minimum of 1 year at the current organisation
• Self-employed folks must have completed at least 3 years in their current business establishment

That�s all for the instant approval Car Loan and Used Car Loan offers folks!

With so many offers on Car Loans available, it would certainly be a pity if you still take the bus or ride in an auto every day. Don�t hesitate. Hit the road in a new set of wheels.

Which Car Should Buy Petrol or Diesel?

Which Car Should Buy-Petrol or Diesel? Car buyers are often troubled by the thought of which car to opt for � a petrol or diesel. We�ll help you make the choice. Diesel cars today have made great strides in terms of refinement and cubic capacity (cc). With constant fine-tuning and improvement, diesel cars have become better, more affordable and are proving to be an equal match for their petrol counterparts.

So can petrol cars be given a miss nowadays? While there is no simple answer to this debate, the following points can help you reach a decision:

1.       Refinement:

This has a lot to do with the car manufacturer. When it comes to the overall refinement of diesel engines vis-�-vis petrol, the former lacks in terms of NVH (Noise Vibration and Harshness) levels. Then again, diesel cars higher up the segment are so refined that one can only hear marginal engine clatter on the outside, while noise inside the cabin is comparable to that of a petrol car.

If you are really picky about NVH levels and can�t stand the clattering noise, a diesel car may not be a good idea. If you can live with a fair amount of noise or vibration, then a diesel car may not be a bad idea at all.

2.       Mileage:

Both diesel and petrol cars have their own share of power attached to them. Mass-market petrol cars have linear power delivery with great initial pick-up which means better response. The moment you press the accelerator pedal in lower gears, the car surges ahead but then it doesn�t really sustain the pulling power after certain RPMs. This results in better horsepower or PS but low torque (Nm).

On the other hand, a mass market diesel car that generally comes fitted with a turbocharger can display a great amount of pulling power which is credited to its increased torque figures (compared to a similar petrol car) resulting in a thrust of power. However, all of this happens when you pass certain RPMs (revolutions per minute) on the tachometer. So, there is a considerable amount of initial lag (often called turbo lag) that you will face, which means despite pressing the accelerator flat, the car will take time to respond to your input. This will result in more torque and less power.

If you�re a car junkie and demand a swift response from your car, a petrol car makes absolute sense. However, if you really love the thrust of sudden power, despite the initial lag, then a diesel car should be your pick.

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3.       Lifespan:

Let�s consider how diesel engines fare compared to petrol engines in terms of lifespan. Diesel engines are comparatively larger in size than petrol engines as they require higher air pressure for firing. A diesel engine starts to depreciate faster than a petrol engine if not serviced regularly. Excessive heat, friction and vibration are the primary reasons why a diesel engine disintegrates faster than a petrol engine.

Why diesel engines depreciate faster:

Following are some other reasons that lead to the faster depreciation of a diesel engine:

1. Diesel units use lift pumps which make the engine heavier. Petrol engines are lighter and use direct injections. Net weight of the engine with full fuel capacity plays a big role in deciding which engine will last longer. Petrol wins hands down with full fuel capacity.
2. Petrol and diesel engines offer different mileage. Diesel engines consume more oil. Use of oil magnifies the frequency of maintenance.

• Diesel engines are used in multiple heavy-duty operations because of the powerful torque that they deliver for the same volume of petrol.

1. Heavy-duty engines are used in tractor trailers, locomotives, ships and underground tubes. These are highly corrosive and high-intensity operations. Depreciation of a diesel engine is evident even with higher service intervals.

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Final word:

While diesel has some obvious advantages like low fuel cost and better mileage, its service and maintenance, however, will cost you more than petrol. Then again, these days diesel engines have become much smoother and quieter. They are also free from lead and regulated oxide pollutants.

If you live in a cold country, a diesel engine will definitely exceed its lifespan, almost twice the margin of a petrol engine. This is because cold start engine in diesel cars is quicker as compared to petrol lighters.

Remember to not just buy a car considering its great mileage and cheaper fuel price; consider costs like the car�s overall running cost and the tenure that you would want to keep it for. If you�re considering keeping a car for long and drive more than 80-100 km a day, diesel can be a valid option. If your running is less and you don�t prefer keeping a car for more than 3-4 years, go for petrol.

Types of Motor Insurance in India

Types of Motor Insurance in India: Motor insurance protects your vehicle against losses arising from unforeseen risks. It basically covers financial losses arising from accidents, theft and other natural calamities. Motor insurance is a contract for an automobile in which the insurance company agrees to pay for your financial loss resulting from a said specified event.

Types of Motor Insurance

1. Third Party Insurance
   This insurance is mandatory by law. It protects a policyholder against losses which arise due to bodily injury/death to a third party or any damage to property. Here the third party includes people travelling with you or whom the insured person injures and claims damages at the time of the accident. But this insurance does not protect you, your vehicle and co-passengers against losses which arise due to bodily injury/death.
2. Comprehensive Insurance 
   In addition to third-party coverage, this policy covers you, your car and co-passengers against damages /losses arising from unforeseen calamities, hence it is prudent to purchase this policy.

Why Motor Insurance

In India, nearly 4 lakh people meet with accidents every month. Fatalities in road accidents in India are moving up at a compounded annual rate of four percent. Considering the high number and the poor state of roads, Motor insurance is a necessary requirement. By law, Motor Insurance is mandatory. Motor Insurance provides financial cover not only to you but also covers damages to the third party (people travelling with you). Motor Insurance also protects you from losses arising from natural calamities like cyclone, earthquake etc.

1. Who should buy Motor Insurance?

Both individual owners, as well as corporate entities, should buy Motor Insurance. All vehicles, be it for personal or commercial use should be insured.

2. Is Motor Insurance Mandatory?

Motor insurance is mandatory for all vehicles under the provision of Motor Vehicles Act 1988, be it for commercial or personal use. It is compulsory to have a valid Motor insurance policy before you can start driving your vehicle. Motor insurance comes with unique plans for four-wheelers, two-wheelers and commercial vehicles.

3. What are the benefits of Motor Insurance?

It is a financial safety net that can help you offset the cost of

• Bodily injuries to yourself or others
• Lost wages due to injury
• Benefits to survivors when an accident results in death
• Lawsuits brought against you as the result of an accident
• Repairs made to your car due to damage caused in an accident

4. What is the cover level of Motor Insurance?

The cover level of Motor insurance can be the insured party, the insured vehicle, third parties (car and people). The premium of the insurance is dependent on certain parameters like gender, age, vehicle classification, etc.

5. What does Motor Insurance not cover?

Motor Insurance does not cover loss due to wear and tear, breakdown, accidents due to drunken driving and war perils. The insurance also does not cover failure or breakage when the vehicle is used outside the geographical area.

6. What is IDV?

IDV is the short form of Insured declared value. It is the value of Sum Assured that can be taken on your vehicle. It is calculated on the depreciated value of your vehicle or on the showroom price of the vehicle depending on the Insurance carrier

7. Why do premiums vary between different insurance companies?

Insurance companies work with different statistics and use different methods to calculate premiums. Some companies are specialized in certain areas or types and so are prepared to give discounts in those areas. This adds to the complexity as various companies yield varied prices.

8. What are the factors that determine the premium amount?

• Make and Model of the Vehicle
• Year of Manufacture
• Place of Registration
• Current Showroom price of the vehicle
• Whether Client is Individual or Corporate
• The principal insurance amount and its subsequent premium also vary according to the price of the vehicle.

9. What is Third Party?

The third party would include all people other than the primary insured. They would include people travelling in the vehicle or pedestrians or people involved in the accident.

10. Which type of policy is better and why?

A comprehensive motor loan is better, as it also covers you against losses arising from theft, natural calamities, vandalism etc. This will have a deductible attached to the policy.

Guidelines for Motor Insurance

Guidelines for Motor Insurance: The Insurance Regulatory and Development Authority (IRDA) has formulated guidelines that have to be adhered to, by any general insurance company offering motor insurance policies in India. Customers have to avail motor insurance policies only from companies registered with the IRDA. Motor insurance widely encompasses private car insurance, two-wheeler insurance, commercial vehicle insurance and all other types of road transport vehicles. In India, it is mandatory to own a motor insurance policy for any type of vehicle. This is because driving a vehicle without a valid insurance plan is a punishable offence as per the Motor Vehicles Act, 1988. A certificate of insurance will be issued apart from the policy by the insurer according to Rul,e 141 of Central Motor Vehicle Rules 1989 when a motor insurance policy is availed.

Types of Motor Insurance policies in India

Insurance companies across the country offer two types of motor insurance covers for vehicle owners -

a) Liability Only Policy - Third Party liability insurance is mandatory for all registered vehicles in India.

If a customer chooses a Liability Only Policy, then vehicle damages will not be covered by the insurer.

b) A Comprehensive Package Policy - Protection against damages to the vehicle plus the Liability Only Policy.

A Package Policy would offer a car owner wider coverage for their insured vehicles.

Coverage under any Motor Insurance policy in India

Damages occurring on any vehicle due to the following natural and manmade perils are covered -

Natural Disasters/Perils	Other types of perils
Fire	Theft / Burglary
Lightning	Housebreaking
Earthquakes Floods/Cyclones/Storms/Tempests/Hurricanes/ Frost / Hailstorm / Inundation	Explosion
Rockslides / Landslides	Self-Ignition
	Strikes / Riots / Terrorism/Malicious Acts
	While the vehicle is in transit through any means of transport
	Accidental External Sources

Exclusions under any Motor Insurance policy in India

A Motor Insurance policy taken from any insurer in India will come with certain exclusions and will not offer coverage for the following -

• Individuals driving without a valid driving license or under the influence of alcohol, drugs and other intoxicating drinks.
• If the accident has taken place outside the geographical area covered under the policy
• Mechanical or Electrical breakdowns in the vehicle and
• If the insured vehicle has been used for any unlawful reason.

Sum Insured for a Motor Insurance Policy

The sum insured is determined for Own Damage coverage as given below -

The insurance company will determine the sum insured according to the current value of the vehicle as per the manufacturer and the depreciation value depending on the age of the vehicle. Here, the sum insured is the value for which the vehicle has been insured and is known as the Insured Declared Value (IDV).

The sum insured is determined for Third Party coverage as given below

For third party coverage the sum insured is determined as per the Motor Vehicles Act, 1988 and also includes a mandatory personal accident cover for the car owner. The motor insurance policy can also be taken with inclusions like workmen�s compensation for the driver, personal accident coverage for co-passengers, etc.

Determination of Premium for a Motor Insurance Policy

There are multiple factors that affect a motor insurance policy premium in India. Different insurers charge different premiums for Own Damage cover. Customers must compare and choose a policy with an affordable premium. The premium will be higher if the customer opts for lower deductibles. Some of the common aspects considered to determine the premium amount for a customer is as follows - Vehicle class, Registration details along with the Engine number, chassis number, seating capacity, cubic capacity, fitness certificate, tax payment details, owner/driver details like gender, age, license validity, qualifications, insurance history, etc. The premium is calculated as per the prevailing rates in the city where the vehicle has been registered.

Premium for Own Damage coverage is decided by the insurance company after approvals from the Insurance Regulatory and Development Authority. Here, the premium will vary based on the following factors - Vehicle Age, Discounts offered by the insurer, loading, past claims, IDV, etc.

Premium for Third Party coverage is determined by the Insurance Regulatory and Development Authority. If there is any insurance breaks, then an inspection has to be conducted and additional charges have to be borne by the policyholder.

If existing motor insurance policyholders add CNG or LPG kits in their vehicles, then the (Road Transport Authority (RTA) office has to be informed to make changes in the registration certificate. The insurer also has to be intimated to include the extra premium that has to be paid for the CNG/LPG kit.

In order to lower their motor insurance premiums, customers can opt for No-Claim Bonus benefits and also get extra discounts for Own Damage and Third Party policies.

Own Damage Premium discounts can be got if -

• Customers are members of the Automobile Association of India,
• They own Vintage Cars as certified by the Vintage and Classic Car Club of India
• They install anti-theft devices in their vehicles as approved by ARAI - Automobile Research Association of India and the Automobile Association of India.
• Special concessions for modified vehicles for handicapped, blind and mentally challenged individuals.
• They choose additional voluntary deductibles or excesses.

For the Liability Only Section, insurers will give discounts on the reduction of Third Party Property Damage from Rs. 7.5 lakhs to Rs. 6,000.

No-Claim Bonus (NCB) in Motor Insurance

Policyholders can enjoy the No-Claim Bonus benefits just as the name suggests, when they have not made any claims for an entire policy year. As per current norms, the NCB varies from 20% for Own Damage premiums and increases to a maximum of up to 50%, if there are consecutive claim-free years. If the customer makes a claim, then the No-claim benefit is lost for the succeeding policy year. This NCB benefit is offered to the insured individual and not on the vehicle and hence cannot be transferred to the new owner when the vehicle is sold. Customers can transfer their No-claim benefits from one insurer to another during renewals by producing the adequate proof showing the entitlement of NCB.

Motor Insurance Policy Tenure in India

Any Motor insurance policy is generally valid for one year after which it has to be renewed by the due date. Grace periods are not offered on premium payments. If the policy is not renewed on time, then the insurer might conduct an inspection before renewing the policy. Additionally, if renewals are not done for more than 90 days for a comprehensive motor insurance policy, the customer might lose the No-Claim Bonus benefit from the insurer.