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Car Loan

About the Bank


Headquartered in Mumbai, Dena Bank was established in the year 1938 under the name Devkaran Nanjee Banking Company Ltd., and is one of the earliest nationalized banks of India. Providing premier financial services of great value, Dena Bank promises superior financial returns and good economic growth to its customers and shareholders.

Car Loans Offered by Dena Bank

Dena Bank understands the magnitude of the decision of owning a car. It might be easy to select the right make and model of the car that you wish to buy, but it takes a little work to find the right car finance plans for funding the car of your dreams. There are personal sources that a prospective car buyer might choose, but most look for more comprehensive car finance plans from different financing institutions. There are a number of deals on car loans available in the market these days, but choosing the best car loans in India requires a great deal of consideration. A car loan provided by Dena Bank, owing to its advantageous features, is ranked as one of the top financial products that are available to people. The car loan from Dena Bank offers a comprehensive finance solution with a flexible tenure, attractive car loan interest rates, and varied options for making the monthly car loan payments. The Dena Bank car loans are available for financing any make and model of cars.

Features of Dena Bank Car Loan

  • Car loan amount eligibility: Dena Bank provides car loans up to Rs.200 lakhs for buying a new car and up to Rs.50 lakhs for buying a two wheeler vehicle.
  • Loan Margin: Loan Margin required by Dena Bank is 10% for a corporate salary arrangement, 15% for a new vehicle and 20% for a used vehicle no older than 3 years.
  • Prepayment Charges: There are no prepayment charges for early closure of a Dena Bank car loan.
  • Security/ Collateral: The hypothecation of the purchased vehicle to the bank is required as security for the Dena Bank car loan.
  • Car Loan Disbursals: The approved loan amount for a Dena car loan is directly disbursed to the car dealership.
  • Processing Fee for Dena Bank Car Loan: Regardless of the loan amount, a processing fees of Rs. 500 is applicable on a Dena car loan.
  • Tenure for a Car Loan: Loan tenures for a Dena Bank car loan can be up to 60 months.

Dena Bank Car Loan Eligibility

The eligibility for Dena Bank car loan depends on a number of factors, like:

  • Maximum age: 60 years.
  • 1 year in current employment and minimum 2 years of total employment.
  • Salaried or self-employed with a regular income.

 

Income eligibility for Dena Bank car loan

  • Salaried individuals are considered as eligible for a Dena Bank car loan if they earn a gross income of at least Rs. 2.50 Lakh per annum
  • Dena Bank car loan eligibility for self-employed individuals – net profit from previous years audited balance sheet should be at least 3 Lakh
  • Dena Bank car loan eligibility companies or partnership firms – should show profits for the last two years, with the previous year’s profits exceeding 3 Lakh

 

Factors that can affect your eligibility when you apply for a Dena Bank car loan

There are a number of factors that affect the car loan amount eligibility of an applicant while they are applying for the Dena Bank car loan. These are the factors that a bank normally takes into consideration for assessing the risk factor that an applicant poses. The riskier investment an applicant seems to be, the more reluctant banks are to offer them the loans. Some of these factors are listed below:

  • The income of the applicant is one of the most important factors that are considered as eligibility criterion when they apply for a Dena Bank car loan. It is mandatory, that the applicable Dena Bank car loan EMI should not exceed 50% of the applicant’s gross monthly salary, as the income affects the applicant’s repayment capabilities in the long run.
  • The car loan from Dena Bank is capped at 85% of the car’s ex-showroom price.
  • The eligibility of an applicant for Dena Bank car loans is also affected by their existing EMI responsibilities. Any EMIs that the applicant already has to pay will affect the disposable income of the applicant, thereby affecting their capabilities to repay the new car loan EMI.
  • The CIBIL score and credit history of the applicant are also factors that are considered while applying for the Dena Bank car loan. Dena Bank car loans are secured loans as they require the hypothecation of the purchased car to be done to the bank for the duration of the loan term, but a good CIBIL score (minimum 750) can help an applicant with quicker approvals for a Dena Bank car loan online.

 

For availing car loan, a person needs to satisfy the eligibility requirements posed by the bank. There are of course a number of ways through which a person can work towards improving their own eligibility for a Dena Bank car loan. For meeting the income requirements, an applicant can add an immediate family member as a co-applicant and use the clubbed income to meet the Dena Bank car loan requirements. Other steps that an applicant can take include repaying outstanding credit card bills (improving your CIBIL score and history) or by choosing a longer tenure to repay the Dena Bank car loan, which will result in lower EMIs.


Check Your Car Loan Eligibility at PaisaBazaar prior to applying for a Dena car loan to know the criteria you need to fulfill for a Dena Bank Car Loan.


There is nothing worse than a rejected application for a car loan. Not only does it render your efforts as useless, it is also added to your portfolio at a bank. To avoid such scenarios, an individual must realize that there are a number of factors that are involved in this approval process. Not only is the total loan amount affected, but also the car loan interest rates that are offered to an individual. That is why checking your eligibility before you apply for a Dena Bank car loan can help you improve your application where improvements are required. Whether it is a pre-owned car loan, or for a new car, make sure you know your application cannot be faulted.


How it works

Visit the PaisaBazaar website car loan section to be able to check your eligibility for a Dena Bank car loan (It is helpful if you already have a Dena Bank account).

  • Step 1: Select the type of car that you are looking for – New or Used
  • Step 2: Select the city where you are residing at present
  • Step 3: Select the make of the car that you wish to buy. Then you will need to select the model of the car (in some cases, you also have to select the variant of the model that you wish to buy)
  • Step 4: Enter the details pertaining to when you are looking to buy the car
  • Step 5: Next, select the amount that you would like to borrow as a Dena Bank car loan
  • Step 6: Select the tenure for the car loan that you feel most comfortable with
  • Step 7: Select form of employment. Salaried individuals need to fill in the name of their employer, and self-employed professionals or businessmen have to select their profession type
  • Step 8: Enter your gross annual income
  • Step 9: Enter the amount of EMI that you are paying at present
  • Step 10: Select the bank that you already have a bank account with
  • Step 11: Enter your personal details like your name, gender, date of birth, email id, mobile number, etc. and click on ‘View all Offers’ to see the loans that you are eligible for.
Dena Bank Car Loan Interest Rates

Interest Rate with MCLR (9.45% w.e.f. 1st September 2016)
 

Two wheelers

Four wheelers

Up to 3 years

MCLR + 2.75 = 12.20% (Floating)

Up to 7 years

MCLR + 0.50 = 9.95% (Floating)

Above 3 years

MCLR + 2.75+ 0.50 (TP) = 12.70% (Floating)

Old vehicle. Max  3 years

MCLR + 2.50 = 11.95% (Floating)

 

 

For women

MCLR + 0.40 = 9.85.% (Floating)

  • Processing fee for Dena Bank car loan: Rs.500 +service tax
  • For two wheeler: Rs.250 +service tax
  • Pre closure charge: 0%
Documents for Dena Bank car loan

Before the bank can disburse car loans, applicants need to provide the following documents for Dena Bank car loan:

  • A duly filled and signed Dena Bank car loan application form
  • 2 Passport size photographs of Applicant, Guarantors and Co-applicant
  • Age Proof
  • Proof of residence
     
  • Salaried employees
  • Bank account statement for the last 6 months with salary credits
  • Pay slips for the last 3 months
  • Form 16
  • Appointment or increment letters
  • Brief company profile of employer

 

  • Self-employed
  • Income Tax returns for the last 3 years
  • Audited financial statement / P&L statements / Balance Sheet for the last 3 years
  • Brief company profile
  • Office address proof
  • Qualification certificate
  • Bank account statements for one year

 

Important
A Dena Bank car loan is a financial contract that is made between the bank and a borrower. This contract is a long term commitment that lasts as long as the loan term. It is a commitment that will be affecting the applicant’s monthly disposable income for at least a few years to come. That is why, before selecting the best choice out of the various Dena Bank plans, an applicant should take all the factors that are involved in the entire loan process into due consideration. It is not just the principle amount, the car loan EMI, interest rate, and the tenure that are to be considered. Equally important are the various other factors that play a role in the application and approval of a Dena Bank car loan. These factors that need to be considered for taking a well informed decision are listed as follows:

  • Prepayment charges and penalties applicable on the pre closure of a Dena Bank car loan
  • Interest rates applicable for a new car, used car, and for women
  • Processing fees chargeable on a Dena Bank car loan application
  • Tenure options that are available for the repayment of the loan
  • Down payment
  • Car loan EMI

Dena Bank Car Loan EMI

One of the most important factors that affect a borrower most in the entire loan process from a financial institution is the equated monthly installment that is applicable in a car loan. The interest rates that are offered for a Dena Bank car loan do tend to affect the decision of availing a car loan, but of course the major role played is when you calculate EMI for Dena Bank car loans. After all, the EMI is the amount that the borrower will be paying to the bank every month, for the entirety of the loan term. Non-repayment of these EMIs will be what will lead to an applicant losing on his CIBIL score. So it becomes of prime importance that the applicant chooses a car loan EMI that will not put any undue pressure on the borrower when it comes to paying back the loan amount. A fact that an applicant should know about the EMI is that a part of the EMI constitutes the interest amount that is supposed to be paid, and a part of the EMI is the principal that is to be repaid. This ratio keeps varying throughout the loan tenure, as in the beginning, a major part of the EMI is interest, which keeps reducing as time passes in the repayment tenure. This factor will not affect the EMI amount during the term. But in case the borrower wishes to make a partial or full prepayment of the loan, they need to be aware of the exact principle amount that is remaining.


For calculating the EMI that is applicable on your Dena Bank car loan, you can use the following formula:
EMI = [P x R x (1 + R) ^ n] / [(1 + R) ^ n - 1]


In this formula,
P = Principal loan amount borrowed
R = Interest rates that have been offered for the car loan
N = Loan tenure, in months (or, the number of installments applicable)


As can be seen, the formula involved in the calculation of the EMI for a particular car loan is rather complicated, time consuming, as well as prone to human error. An easier way to conduct this calculation will be by using a car loan EMI calculator. The Dena Bank car loan EMI calculator can assist you in calculating the amount of EMI that will be applicable on various car loan plans by Dena Bank. To calculate the EMI, the Dena Bank car loan EMI calculator requires the interest rate, principle amount, and loan amount, information that is easily available to applicants.


Using the car loan EMI calculator
The car loan EMI calculator by PaisaBazaar can assist you in the simple calculation of the EMI that you will be liable to pay for a particular Dena Bank car loan option. All that the calculator requires is the availability of easy information like the amount of the loan taken or applied for, the interest rates that are being offered, and the tenure that the applicant would like to opt for, to provide the user with an immediate calculation of the EMI. The easy to use EMI calculator is available on the PaisaBazaar website under the tab for “Tools”. This tool is easy to use, with a simple user interface, and is available to everyone, free of charge. So whatever your purpose is, whether you need research for a project, whether you need research for planning future finances, or even if you are just curious, you can use this free of cost, easy to use tool for the quick calculation for any number of car loan options. The steps to use this easy tool are listed as follows:

Using the PaisaBazaar EMI calculator for a Dena Bank car loan


Step 1:
The first step requires you to enter the principal amount of the car loan that you are applying for, or wish to apply for.


Step 2:
For the second step of the EMI calculation, you need to enter the interest rate that has been offered to you for a Dena Bank car loan.


Step 3:
In the last section, you will be required to enter the loan tenure that you would like opt for, for making the repayments. The loan tenure with Dena Bank can vary from 1 year to 7 years for new cars and from 1 year to 3 years for old or used cars (cars that are no older than 3 years).


As you keep entering the details that are required in the three sections, you will be able to see the EMI that is payable for that particular Dena Bank car loan option at the right side of the calculator. Another helpful feature of this handy calculator is that you can change any one, or all values that you entered in the three sections and see the EMI get updated in real time for a new amount that is liable with the new car loan values that you enter.

Applying for the Dena Bank car loan

An individual can begin their car loan application for a car loan provided by Dena Bank through a number of different ways. Given that an applicant fulfills the requirements for Dena Bank car loan, they can either apply for a car loan online, in person, or avail pre-approved car loans. The car loan application at Dena Bank is a hassle free process that requires minimal efforts and offers quick approvals.
 

  • To apply for a Dena car loan in person, an aspiring applicant can show up at a Dena Bank branch, receive the required Dena Bank car loan details, and apply for the loan.
  • Applying for the car loan can also be done online through the official web portal of Dena Bank.
  • Another way to apply for the Dena Bank car loan online is through the PaisaBazaar web portal, where you can browse, compare, and select the right loan options for you.
  • A Dena Bank car loan online can also be taken as a used car loan, as long as the car in question is not older than three years. The Dena Bank  car loan interest rates and the tenure for a used car loan will vary from a new car loan.

Dena Bank Car Loan FAQs

1. Does a borrower have to provide additional security collateral while applying for a Dena Bank car loan?

A. No, other than the hypothecation of the new vehicle that has been purchased, Dena Bank does not require extra security or collateral for a car loan.
 

2. Can I apply for a Dena Bank loan with a co-applicant?

A. Yes, to improve your eligibility score, you can club your income with that of your spouse or family member and apply for a Dena Bank car loan as co-applicants.
 

3. How can I apply for a Dena Bank car loan?

A. You can apply for a Dena Bank car loan in the following ways:

  • Visiting your nearest Dena Bank branch
  • Applying online –
    • Through the Dena Bank website
    • Through the PaisaBazaar.com portal

 

4. What are the documents required for applying for a Dena Bank car loan?

A. Documents Required:

  • Loan application form
  • 2 Passport size photographs of Applicant, Guarantors and Co-applicant
  • Age Proof
  • Proof of residence
     
  • Salaried employees
  • Bank account statement for the last 6 months with salary credits
  • Pay slips for the last 3 months
  • Form 16
  • Appointment or increment letters
  • Brief company profile of employer

 

  • Self-employed
  • Income Tax returns for the last 3 years
  • Audited financial statement / P&L statements / Balance Sheet for the last 3 years
  • Brief company profile
  • Office address proof
  • Qualification certificate
  • Bank account statements for one year

 

5. What is the maximum loan tenure for a car loan from Dena Bank?

A. Loans from Dena Bank can be availed from a period of 1 year to 7 years for new vehicles, and for up to 3 years for used vehicles.

 

6. What are the documents that need to be submitted as income proof for a Dena Bank car loan?

A. Depending on the category of employment of the applicant, the following documents need to be submitted with Dena Bank as proof of income for the applicant:


Salaried individuals

  • Pay slips of the last 3 months
  • Form 16
  • Appointment letter
  • Increment letter
  • Profile of the company where they are employed
  • Bank statement for the last 6 months of the account where the salary is credited every month

 

Self Employed individuals

  • Profile of the company
  • Income tax returns for the last three years
  • Profit & Loss statements of the company
  • Audited or CA certified balance sheets
  • Bank statements for the last one year for both current and savings accounts

 

7. Is there a processing fee that is charged on a Dena Bank car loan?

A. Yes, Dena Bank charges a processing fee of Rs. 500 plus service tax on car loans that are offered to customers. This processing fee amount is the same for all loan amounts.

 

8. Is there any loan margin that is applicable on a car loan from Dena Bank?

A. Yes, a loan margin of 15 % is required for Dena car loans that are taken for new cars. However, if the customer has in place a corporate arrangement with Dena Bank, then the loan margin is reduced to a 10 % of the on road price of the car. If the applicant is taking a loan for a used car (which cannot be older than 3 years) the margin required is 20 %.

 

9. Who all are eligible to apply for a Dena Bank car loan?

A. Self-employed individuals, salaried individuals, companies, partnership firms, and proprietary firms, are all considered as eligible for a Dena Bank car loan, as long as they are able to prove that they meet the other age and income eligibility criteria.

 

10. What is the income eligibility that an applicant has to meet before they can apply for a Dena Bank car loan?

A. To meet the income eligibility for applying for a Dena Bank car loan, individuals and proprietary firms need to show that they have an annual income more than Rs. 2.5 lakhs, while applicants that are companies or partnership firms need to show that their income exceeds a minimum of Rs. 3 lakhs before they can apply for a Dena Bank car loan.