Car Loan: In India, buying a car is considered as a big investment meant for atleast 3-5 years, its because in our country, even the most affordable new car costs around 4-5 lakhs, in this case, it is very important to have atleast this much amount of money to buy a car, when people don’t have finances, they prefer to take loans. In the Indian automobile market, a big proportion of people take car loan to buy a new car, but if won’t important takeaways into consideration when taking car loans, it eventually gets a hectic and burdensome process for you. Here, in this article, we will talk about the takeaways that you should keep in mind when you take loans for buying a car. Check full story to get into more details.
At the first step, you need to analyse how much amount you will be able to pay as the monthly EMIof your vehicle. A constant availability of this fixed amount is very important for you to withhold every month, otherwise your EMI will bounce, and it will eventually lead to penalty from the lender.
Credit Score
Check your credit score, also known as CIBIL Score affects the interest rate charges on your car loan, if you have a good credit score, the bank will provide you with the car loan on the low interest rates.
Low Interest Rates
Apply for the car loans which is available at lowest interest rates, these low interest rates will ease your EMIs, eventually you will not be needed to pay high interest rates which is considered as an extra charge that lender charges for its profit.
Tenure Of The Loan
You are advised to take loans for a short tenure, you will be not paying high interest if you opt for relatively a short tenure for your car loan, along with paying back the loan earlier, you will save a considerable amount of money by keeping your loan tenure less.
Check Out Other Benefits
Checkout for other benefits that comes with car loan by some of the lender banks. Some extra benefits such as Car Insurance policies, ask your lender about these extra benefits before you take car loan.
Read Terms And Conditions Thoroughly
You must read all the terms and condition stated in the loan documents thoroughly and appply for loan only if you are satisfied with the policies of the lender, and if any doubt arises about a specific condition of the lender, you should ask and make it clear as soon as possible.
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