Please find below the Frequently Asked Questions(FAQs) which has been compiled keeping in mind all the basic queries which you would be having in your mind.
We are confident this information will be helpful and expedite your decision in owning your dream Skoda Car.
1) Can I take a loan from Skoda Finance to buy any car?
If you take a loan from Skoda Finance you can purchase Skoda manufactured cars only.
2) What are the loan tenure options?
The tenure of the loan could range from one to five years.
3) How is the interest charged / calculated?
Interest is calculated on a monthly reducing balance basis.
4) Do I have to pay any additional charges?
Please refer the Service Charges section.
5) How do I approach Skoda Finance for a Car loan?
You can just walk into any of our Authorised Skoda Dealership.
6) How much time will it take for my loan to be approved?
The loan will be processed after receipt of post-sanction documents at Central Office.
7) Is a personal guarantor a must?
No, a personal guarantor is not a must.
8) What security / collateral do I have to provide?
No additional security / collateral needs to be provided, apart from the car against which the loan is granted, being hypothecated to Volkswagen Finance Private Limited.
9) If I do not meet all the criteria for the loan, can I still avail of a loan?
All loans are at the sole discretion of VWFPL.
10) How do I repay the loan?
The loan can be repaid through Electronic Mode (ECS) or post-dated cheques drawn on Volkswagen Finance Private Limited.
11) Can I foreclose my loan?
Yes. A foreclosure fee of 3% on the outstanding principal amount along with Service Tax as applicable will be charged if closed within 24 months of the loan taken. For details please see the Service Charges section.
12) What is a Monthly Reducing Balance?
In the case of monthly reducing balance method, the principal gets reduced at the end of every month and the interest is calculated on the outstanding principal at the end of the month.
13) What are the stages involved in availing a loan?
The stages involved are:
Sanctioning of the loan
14) How can I foreclose my Car Loan?
Make a call to VWFPL Call Centre and get foreclosure statement. Based on FC statement, pay the total amount at your dealership. Below mentioned documents to complete the prepayment process:
Duly Signed and dated physical copy of request letter is required from applicant towards foreclosing of the said loan amount
Foreclosure payment can be made either via Cheque/DD favouring "Volkswagen Finance Private Limited" or funds transfer via NEFT/RTGS can also be done. Bank details for funds transfer can be checked from our Customer Care Team
Interest is calculated on a daily basis and will be applicable & payable by customer till the time of receipt of clear funds as well as receipt of physical request letter
Banking is considered on the working days
If the funds are transfered via RTGS/NEFT kindly please share the bank details along with UTR reference no. to enable us to check the receipt of funds at our end to proceed with loan foreclosure
15) How can I obtain my un-banked PDC or Security PDCs?
After closure of Loan, in the event of the applicant’s wish to procure the post-dated cheques and / or security post-dated cheques that remain un-banked at the end of the loan tenure / change of repayment mode; or details of such un-banked post-dated cheques and / or security post-dated cheques, the applicant must make a request for the same, within thirty days of closure of loan / change of repayment mode. If this is not done, VWFPL shall have the discretion / responsibility to destroy the un-banked post-dated cheques including security post-dated cheques without any further notice and VWFPL shall not have the obligation to return the same to the Applicant.
16) How do I update my mailing address, mobile number or Email Id registered under my loan account?
For address change, necessary KYC proof needs to be submitted and for change in Email Ids and mobile numbers, Customer Request Form (CRF) needs to be filled up which is available at the Dealership