Buying a car is one of the fascinations of many. But to buy a car is not easy first; there should be an appropriate fund to buy the requisite car. Nowadays, buying a car, be it a new or second hand from a particular reputed brand or company, can cost a bunch. It had become an expensive affair, as it was in older times when the cars were invented. However, there are intelligent ways of car financing options in today’s time.
Moreover, the banks and financial agencies are rolling out so many options for car buyers every day. Every day the mobile gets flooded with such offers. The option of Car loan has made it easier for customers to make a proper decision. However, to make the most out of the car loan, one must recognize the vital things that help get the loan.
What are the considerations to obtain a car loan?
● A good CIBIL Score- a good CIBIL rating would ensure the customer gets the loan at an attractive interest rate. The bank may not consider giving a loan to anyone who has a low CIBIL score.
● The lower the Rate of interest, the more it will benefit the customer. With a high EMI, it becomes difficult to repay the loan given the rise in living expenses. So a low-interest rate will help the customer relax and repay.
● EMI Repayments look so easy but one should calculate all the EMI’s that the person has before opting for the Car loan. Planning the finances appropriately makes it easy for the customers to deal with.
● One must take into consideration the Loan Repayment Tenure. The years or months upon which the loan should be repaid are essential. The longer the tenure will be, it will be beneficial for the customers, because the monthly EMI will be low.
● The Processing Fee is a fixed amount charged by the bank on the car loan application. Sometimes the loan interest is low, but there is a high processing fee charge. Hence, it is advisable to keep this in mind before getting the loan proceedings done. Different banks have different processing charges; go for the lower one.
● Service Tax is a basic charge that the banks take from the borrowers against the services provided. This charge is not negligible. One can check the fee before signing the final document.
● Every bank has different car loan interest rates and other charges. So, the customers need to get a quotation from foreign banks and financial institutions before applying for a car loan from one specific lender.
● There are special offers and schemes from the bank while obtaining a car loan. Special discounts are offered during fee festivals which makes the customers eligible for the loan amount.
How to obtain a New Car loan efficiently?
Who doesn’t want to buy a new car? But the budget doesn’t allow most of the customers too. But one can obtain a new car loan through different banks. The loan amount, interest amount varies from bank to bank. Every bank has its policies and rules to follow. One must keep in mind the car brand, model, and price upon which the loan amount will be calculated. Based on the car, one can choose the eligible loan offer. It may not qualify for the loan by the particular bank, so that one can check with other banks. Generally, most banks offer loans for 80% to 90% of the car’s on-road price. Few banks even provide 100% financing on new car loans based on the income and credit history of the customers. Before applying for a new car loan online, one can calculate the loan calculator to find the EMI. Then upon finding the appropriate loan amount, one can buy the new car.
