We all cherish the dream of buying a new car someday. However, is buying a new car as easy as dreaming itself? Surprisingly, the answer is a big YES. With a flexible auto loan, you don’t need to wait for years, saving penny after penny, to buy a new car.
Basically, a car loan lets you buy a car through monthly installments rather than paying the whole amount upfront. You will have to pay some amount as a downpayment and get the rest of the amount financed by a lender.
How Can I get A Car loan?
A number of factors can affect your chances of getting a car loan. Basically, your eligibility to get a car loan depends on your income and credit score. If you have a good credit score, then you can negotiate for a lower interest rate with the lender. Sounds cool right?
Some factors determining the interest rate of a car loan are car model and age. You will require the following documents to get an auto loan.
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Application form
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Photographs
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KYC documents
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Income proof
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Some lenders may ask for employment stability proof as well.
What are the Benefits of A Car Loan?
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Easy way to get a new car
Taking an auto loan is the best way to finance your dreams of owning a new car. Many lenders now offer 100 percent loan of the ex-showroom value. Hence, you can bring your new car home easily with flexible loans.
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Your savings are safe
You don’t have to exhaust your hard-earned savings over buying a car.
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Different repayment options
Car loans offer flexible repayment options. EMI is just an umbrella term for different types of repayment options that are offered by banks. Some of the EMI types include Balloon EMI, special-tie-up EMI, step-down EMI, step-up EMI, regular EMI, etc.
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Prepayment facility
Imagine that you got lucky and found yourself with some extra cash. Well, you can just prepay the pending dues before the end of your car loan tenure. While the terms and conditions may vary between the banks, the prepayment option helps you to clear the liability before the agreed period.
However, some lenders will only allow using the prepayment facility after a specific period of time.
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Customized payment mode
These days banks let you choose the repayment mode. You can either avail auto-debit repayment mode where an agreed amount will be debited automatically from your bank account every month or the post-dated cheque mode.
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No additional collateral needed
There is no need for additional collateral while taking a car loan. Technically, your car is the collateral and if you fail to make the agreed payments, then the bank has the right to seize the vehicle.
Read Also: Major Banks Under One Roof for New Car Loans
Check Out Our EMI Calculator
Are you looking for a trustworthy place to compare auto loan options for your dream car? Well, you have come to the right place. You can compare different loan options and choose the right one that fits your budget.
Our online EMI calculator lets you prudently calculate the number of installments and EMI payments to be made monthly. Check out the coolest EMI Calculator online here.
Read Also: Tips and Tricks to Manage a Car Loan
