Buying a car has become more of a status symbol than being just a necessity. Banks are offering loans at competitive rates to lure customers into availing these loans. Furthermore, many people look forward to buying a car during the festive season. This is due to the fact that both banks and non-banking finance companies usually lower their lending rates on car loans and even offer subsidies on processing fees. Some banks even offer 12-month loan waivers. In spite of its pros and cons, availing a car loan has enabled many people from middle-class backgrounds to buy their own car.
Some of the benefits of availing a car loan are as follows:
• Wider eligibility – Due to the presence of numerous financial institutions which are offering loans at competitive rates, more and more people are getting their loan applications approved. Anyone with a basic minimum source of income is getting eligible to get a loan to buy a car.
• The procedure to apply for a car loan has been simplified by banks to attract more customers. The documentation and approval processes may require less than a day.
• It is becoming more and more convenient for people to avail a car loan as banks are providing up to 95 % of the on road price of the car. This saves a customer the trouble of bearing the expenses of accessories, insurance and registration.
• The car can be treated as collateral in case of such a loan and eliminates the requirement of providing other property as additional security for getting a loan. Furthermore, the car loan lets the borrower be the complete owner of the vehicle and enables him to do whatever he/she pleases with the vehicle.
• The financiers allow the borrower to choose the repayment plan according to his/her capacity. If a borrower pays a higher margin amount, he can reduce the amount of the EMI that he needs to repay over the stipulated period of time.
• Finally, dealers of cars are ready to provide you with more benefits and thereby reduce their commission margin. This is because they are under pressure from their higher authorities to increase the sales volume and this actually benefits the customer.
The festive season in India is a period of time when many people all over the country buy houses, apartments, cars and other luxury items. Banks and financial institutions provide all sorts of perks to attract customers. And these are not always false promise. Lower interest rates sometimes enable a customer to buy a car at a price lower than what he would have paid had he bought the car during some other time of the year. A good credit standing and sufficient savings in your account place you in good stead to get a loan to buy a car.
Some of the benefits of availing a car loan are as follows:
• Wider eligibility – Due to the presence of numerous financial institutions which are offering loans at competitive rates, more and more people are getting their loan applications approved. Anyone with a basic minimum source of income is getting eligible to get a loan to buy a car.
• The procedure to apply for a car loan has been simplified by banks to attract more customers. The documentation and approval processes may require less than a day.
• It is becoming more and more convenient for people to avail a car loan as banks are providing up to 95 % of the on road price of the car. This saves a customer the trouble of bearing the expenses of accessories, insurance and registration.
• The car can be treated as collateral in case of such a loan and eliminates the requirement of providing other property as additional security for getting a loan. Furthermore, the car loan lets the borrower be the complete owner of the vehicle and enables him to do whatever he/she pleases with the vehicle.
• The financiers allow the borrower to choose the repayment plan according to his/her capacity. If a borrower pays a higher margin amount, he can reduce the amount of the EMI that he needs to repay over the stipulated period of time.
• Finally, dealers of cars are ready to provide you with more benefits and thereby reduce their commission margin. This is because they are under pressure from their higher authorities to increase the sales volume and this actually benefits the customer.
The festive season in India is a period of time when many people all over the country buy houses, apartments, cars and other luxury items. Banks and financial institutions provide all sorts of perks to attract customers. And these are not always false promise. Lower interest rates sometimes enable a customer to buy a car at a price lower than what he would have paid had he bought the car during some other time of the year. A good credit standing and sufficient savings in your account place you in good stead to get a loan to buy a car.
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