The young working class of India rides on their own set of wheels as soon as they land up with a good job. Due to this reason, the auto loan India industry has grown by leaps and bound in the last decade and is still growing at a rapid rate. If you are thinking of buying a car, you need to be able to finance it in order to enjoy its comforts and at the same time relive yourself from the pressure of spending a large amount of money at one go. An auto loan is one of the most sought-after loans in India and hence it is also easily available.
Auto loans are loans given to individuals for purchasing automobiles against their monthly income. Auto loan India is a very huge market with lots of direct (banks) and indirect (auto loan financer) financial institutions ready to help you buy your first car. The interest rate varies from 10% to 13% depending on the person’s income, the choice of car and his/her credit score. Auto loans in India generally cover up to 85% of the total cost of buying a car.
Auto loans are definitely a savior when it comes to buying a car. Mentioned below are some of the reasons on how auto loans make it easier for you to buy a car:
• The first and the foremost reason is that you don’t have to pay a large amount of money in order to own a car. The auto loan can finance up to 85% of the total cost of the car.
• The tenure for loan amount generally varies from 2 to 10 years which makes it easier for you to pay the loan back in easy monthly installments over that period. The ideal EMI for a loan applicant is around 20% of their net salary.
• As compared to other loans, the interest rate of auto loans is quite low as it is secured against the car itself. So you don’t have to pay a large amount money on interest and can buy the car at the lowest price possible.
• If you are buying a car from a company which is also financing it, you can avail extra benefits such as free road tax for six months, free services etc.
• The entire procedure is a hassle free process as everything is done at one place, saving you the time and energy required for multiple visits.
All these points combined with the fact that coming up with a large amount of money to purchase a car at one go is not possible for everyone. This is where opting for an auto loan is a good idea. But it is also equally important to consider all the possibilities before opting for an auto loan.
Auto loans are loans given to individuals for purchasing automobiles against their monthly income. Auto loan India is a very huge market with lots of direct (banks) and indirect (auto loan financer) financial institutions ready to help you buy your first car. The interest rate varies from 10% to 13% depending on the person’s income, the choice of car and his/her credit score. Auto loans in India generally cover up to 85% of the total cost of buying a car.
Auto loans are definitely a savior when it comes to buying a car. Mentioned below are some of the reasons on how auto loans make it easier for you to buy a car:
• The first and the foremost reason is that you don’t have to pay a large amount of money in order to own a car. The auto loan can finance up to 85% of the total cost of the car.
• The tenure for loan amount generally varies from 2 to 10 years which makes it easier for you to pay the loan back in easy monthly installments over that period. The ideal EMI for a loan applicant is around 20% of their net salary.
• As compared to other loans, the interest rate of auto loans is quite low as it is secured against the car itself. So you don’t have to pay a large amount money on interest and can buy the car at the lowest price possible.
• If you are buying a car from a company which is also financing it, you can avail extra benefits such as free road tax for six months, free services etc.
• The entire procedure is a hassle free process as everything is done at one place, saving you the time and energy required for multiple visits.
All these points combined with the fact that coming up with a large amount of money to purchase a car at one go is not possible for everyone. This is where opting for an auto loan is a good idea. But it is also equally important to consider all the possibilities before opting for an auto loan.
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