eCarWorld Frequently Asked Questions
Q:What is the quantum of finance available to purchase a vehicle?
We facilitate loans ranging from 3 Lacs to 10 Lacs. The amount you are eligible for would depend upon factors like your income, credit score and other creditworthiness indicators.
Q:What is the minimum down payment required?
At least 10% of the vehicle on-road cost should be funded by the buyer.
Q: What is the tenure of financing?
Maximum tenure is 36 months and minimum tenure is 12 months.
Q:What is the mode of financing?
The money will be transferred to the dealer on your behalf as a loan to you. The structure followed is a rent-to-own model. At any point of time, your percentage stake in the car can be determined. Expenses such as insurance will also be borne in the ownership ratio.
Q:How is the credit score or creditworthiness of an applicant determined?
The following factors are taken into consideration:
- CIBIL or other credit score from credit rating agency
- Net monthly income [NMI] (take home income after any deductions)
- EMI (amount payable for current loan request)
- Total EMIs [TEMI] (EMIs on existing loans plus proposed EMI on new loan)
- ECW Credit Score = Credit rating factor*Total EMI factor*Savings factor
- Credit rating factor will be derived from the credit bureaus such as CIBIL, rationalizing it on a scale of 10. For applicants who are new to credit, 7.5 will be taken by default. Minimum eligibility is 5.
- Total EMI factor will be calculated using the following formula: (1-TEMI/NMI)*10. The minimum eligibility on this factor would be 5.
- Savings factor is calculated as ((0.75*NMI-TEMI)/EMI)*5 with a cap of 10 and minimum eligibility of 4
- Minimum possible score with these parameters would be 100 and maximum possible is 1000
Q:What type of insurance do I need to take for the vehicle?
During the finance tenure, you would need to take either comprehensive or bumper to bumper insurance, as that is the assumption made in the financial model. After the tenure, you are free to take 3rd party insurance.
Q:Is there an early exit clause?
You can exit from the deal by purchasing the remaining stake in the vehicle at the current car value, as determined by ECW, at any time after the completion of the first year. There is no early exit penalty.
Q:What documents are required and how long will it take for me to get the financing?
The following documents are required:
- PAN and other address proof
- Income proof (to substantiate the NMI mentioned in the application)
- Last 6 month bank statements (as secondary proof for the income)
- Quotation for the vehicle to confirm the cost
Once you have submitted your loan request and provided the necessary documents, we will let you know within 3 days whether you are eligible for the financing. Once it is approved, we would post the deal on the investors portal, and once it is fully subscribed you would need to transfer our fees and physically sign the agreements after which we would transfer the sanctioned amount to the dealer within 2-3 working days.
Q:Can I purchase the vehicle from any car dealer?
Yes, you can purchase from any authorized car dealer. Our staff would need to visit the dealer to confirm the purchase details.
Q:What are the fees charged by eCarWorld?
In the case of new passenger vehicles, 1% of the funding amount (plus applicable taxes) will be charged. In the case of Pre-owned vehicles or new commercial vehicles, 2% of the funding amount (plus applicable taxes) will be charged.
Q:When do the EMIs start and what is the mode of repayment?
The EMIs start from the month after the month in which the delivery of the vehicle was taken. The payment is due on the 5th of every month for the tenure of the financing.
A NACH or ECS mandate will be taken from you for the account from which you want to make the repayments. PDCs will also be taken in case there is an issue with the NACH payment.
Q:Who can invest in deals available on ecarworld.in?
eCarWorld is currently not accepting investment through P2P model. Deals already closed will continue to be serviced.