Car is no more a luxury but a necessity these days if one is living in a metropolitan city in India. With travel distance and increased complexities in terms of availability of public transport, cars have become an important asset one should own if they desire to save intra-city travel time. Getting a car has nowadays become super easy with car finance options being offered by almost every bank known.
The approval of a car loan to a great extent depends on the manner of its application. If one is thinking of opting for a car loan to purchase a car there are certain things he may keep in mind to get an attractive deal on the car loan application. This is how one can look for the best deals-
• Conduct a detailed research on the car price- It is often seen that different dealers quote different prices for the very same model. One can choose and zero down on the best offer made. By choosing the dealer who quotes the best price one indirectly also reduces the principal amount for the car loan.
• Check various options available in car loans- Car finance is a dynamic sector as far as loans are concerned. Different banks offer different rates depending on criteria such as the loan amount, duration, credit history of the customer and so on. Often the bank with whom the dealer has tied-up with does not provide the best offers. So, before buying the car the customer must check the various loan options given by different banks to assure that het gets the best loan deal.
• Credit profile of the person who is opting for the loan- The interest rate and monthly EMI of a car loan to a certain extent depends on the credit profile of the person who opts for it. If one has certain credit discrepancies such as pending EMIs of other loans and unpaid debts, the bank is more likely to charge relatively higher interest rates for the car loan.
• Opt for an optimum duration for the car loan- When a buyer is thinking of purchasing a new car by taking a loan he must choose the shortest possible duration. This ensures that the loan is productive. Higher the loan tenure, a borrower will have to pay more interest on the loan. The ideal duration for a car loan is 2.5 to 5 years.
Lastly, before finally signing the papers one must read the fine print to assure that all terms and conditions are known and agreed upon.
The approval of a car loan to a great extent depends on the manner of its application. If one is thinking of opting for a car loan to purchase a car there are certain things he may keep in mind to get an attractive deal on the car loan application. This is how one can look for the best deals-
• Conduct a detailed research on the car price- It is often seen that different dealers quote different prices for the very same model. One can choose and zero down on the best offer made. By choosing the dealer who quotes the best price one indirectly also reduces the principal amount for the car loan.
• Check various options available in car loans- Car finance is a dynamic sector as far as loans are concerned. Different banks offer different rates depending on criteria such as the loan amount, duration, credit history of the customer and so on. Often the bank with whom the dealer has tied-up with does not provide the best offers. So, before buying the car the customer must check the various loan options given by different banks to assure that het gets the best loan deal.
• Credit profile of the person who is opting for the loan- The interest rate and monthly EMI of a car loan to a certain extent depends on the credit profile of the person who opts for it. If one has certain credit discrepancies such as pending EMIs of other loans and unpaid debts, the bank is more likely to charge relatively higher interest rates for the car loan.
• Opt for an optimum duration for the car loan- When a buyer is thinking of purchasing a new car by taking a loan he must choose the shortest possible duration. This ensures that the loan is productive. Higher the loan tenure, a borrower will have to pay more interest on the loan. The ideal duration for a car loan is 2.5 to 5 years.
Lastly, before finally signing the papers one must read the fine print to assure that all terms and conditions are known and agreed upon.
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