As you know that the car policy of CSD Canteen has changed from 1 January 2023. Now the defense personnel will be able to purchase a car from CSD canteen at least up to Rs.950000. If you are not aware about the New Car Policy of CSD Canteen then you can read the new policy information in the News section of the app. According to the new policy, you will get the information about which car the defense personnel can take through the CSD canteen.

A car is a high value product which requires a loan at the time of purchase. Whenever a defense person purchases a car from a CSD canteen, the car loan process is different from that of a civil one. In this post, we will talk about how to take a car loan while purchasing a four wheeler from CSD canteen.

CSD Canteen Car Loan Process

To avail a car loan from CSD canteen, first you have to decide the car. After that the CSD price of the car has to be checked. You can check the CSD price of any car in any state in the Fouji Adda app.

After checking the CSD price, you have to decide the loan amount as per your budget. After this, the CSD dealer of that car company has to be contacted for booking the car. CSD dealers from all over India are given in Fouji Adda app. You can call those dealers through Fouji Adda App.

After booking the car, you have to start the loan process. If there is a waiting time for the delivery of the car, then you have to start the loan process 2 weeks before the delivery. The process and term conditions of CSD car loan are almost the same across all banks. Serving defence person also have option to avail AGIF car loan. Now let's talk about terms & conditions.

Car Loan Terms & Conditions

• The age of the applicant should be between 21 years to 65 years.
• For a car loan, a minimum of Rs 1 lakh has to be taken as a loan. Car loans less than this amount are not available.
• 1 to 5 years are given for repayemt of car loan through EMI. If the CIBIL score of the applicant is good, then banks also give 7 years time for repayment.

Car Loan Amount

The CSD car loan amount is decided in two ways.

• Ex showroom price of the car - Maxmimum Car loan can be availed from 85% to 100% of the ex showroom price of the car. The amount of car loan depends on the policy of the bank, which keeps on changing from time to time.
• On-road price of the car – The CSD car loan can also be availed on the basis of the on-road price of the car. Banks finance 85% to 100% of the on road price of the car. Insurance, registration charges, road tax, etc. are added to the ex-showroom price to get the on-road price of the car.

Car loan interest rate

The interest rate of CSD car loan is not fixed. It depends on the CIBIL score of the applicant. Apart from this, according to the latest policy of RBI, banks keep changing the interest rate of car loan from time to time. Currently, car loans range from 8.65% to 10%. If the CIBIL score of the applicant is good, then he gets the loan at a lower interest rate, otherwise he has to pay a higher interest rate.

Now let's talk about the process of applying for the loan. When there are 10 - 15 days left for the delivery of your car, the process of taking the loan should be started at that time. To take a loan, you have to prepare some documents which are mentioned below.

Car loan documents

The following documents are required to be prepared while applying for a car loan.

• Form 16 last 2 years.
• Pay slip of last 6 months.
• 3-6 blank cheques.
• Photocopy of PAN card.
• Photocopy of Aadhaar Card.
• Passport size photo.
• Photocopy of PPO if applicant is ESM
• Car Availability Certificate.

After preparing the above documents, they have to be submitted to the bank. Apart from this, the bank prepares the car loan application which the applicant has to sign. After submitting all these documents to the bank, the bank will approve the loan to buy the car from the CSD canteen.

After the loan is approved, the bank issues 2 documents to the defense person.

• Car loan sanction letter.
• Payment receipt.

Both these documents are to be uploaded at the time of ordering car online on the CSD AFD portal. The payment receipt contains a UTR number which you need to enter while placing an order online. If the defense person takes loan from PNB Bank, then UTR number is not available in that situation, instead you have to enter the transaction number.

This was the complete information about taking loan while buying a car from CSD canteen. In the next post, we will talk about how you can place an online order for a car on the CSD AFD portal after the loan is sanctioned.

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