A car is a great asset but owning it needs financing and middle-class people with monthly salaries always prefer to get car loans. But before rushing into getting a car loan, there are many factors to consider and to keep in mind before choosing a car loan. You need to assess your finances and decide how much you can spend on the down payment and EMI. Apart from that, there are several other factors as well. Below listed are those with top priority for any type of a car loan.
 |
| Car Loan |
Consider it as a check list and cross each out before signing the dotted line:
- Manage your credits: Your credit with respect to your income determines your chances of getting a loan. Your credit history is what determines your capabilities of repaying the loan. With a good credit score, you’ll get a lower interest rate. You have to ensure that you have no pending credits. Only then you will be able to land the best interest rates.
- What are the documents needed? There are several documents required for getting a car loan and for that you need to keep all the documents ready. Documents like address proof, age proof, photographs, car documents, income proof like 3 months' salary slips, 6 months' salary bank account statement, latest income-tax return, etc. need to be submitted for the approval of a car loan.
- Know your limits: Don’t push your limits and get a car with EMI that is beyond your capabilities. This may land you in trouble. Take a wise decision.
- Be a little far sighted: Plan a little into future. The saying “live in the present” is never applicable in the case of car loans. You need to plan beforehand the source of your EMI instalments and ensure that there can be no glitches.
- Your cibil score: Cibil score is like your scorecard for getting a loan. Clear out all your old debts to get a better cibil report. Get your cibil report reviewed carefully.
- EMI and loan tenure: This is one of the most prominently important factors to consider before getting a car loan. Get an assessment of the amount of funds you have at hand and how much down payment you can afford. Also you need to determine the amount you can afford every month as EMI instalments. The smaller the EMI instalment amount, the longer is the tenure of the loan.
- Foreclosure charges: There are many banks that charge you for foreclosure of the car loan. Before deciding the loan, check about those applicable charges and ensure there are none. Most of the public sector banks have banned foreclosure penalties on car loans.
- Research cars first: Research about the type of car you want to buy and get a clear budget. Start looking for loans only after you are clear on the range of the car cost.
 |
| Car Loan |
- Get quotations: Before finalising a car loan from a particular bank, get quotations from several banks and compare the benefits and interest rates and then make a well informed decision. Don’t just pick a car loan at random. Do your research and study the varying interest rates.
- Decide the down payments wisely: Each lender has different criteria of down payments and that is what you need to look into beforehand. Firstly, you need to have an idea of how much down payment you can pay and then choose a car accordingly. Most lenders keep the down payment in the range of 10% of the price of the car while there are some lenders as well who provide car loans with zero down payments.
After you have analysed the above points, you are good to get a car loan. All the above factors are the core governing factors of getting a car loan.
0 comments:
Post a Comment