Find out how you can take Car loan in Simple and easy Steps
Now that you have selected car for you the next step is financing. Although you can pay amount in cash but car financing has varied advantages
- It can immediately provide you car of your choice.
- Flexible repayment schedule
- Varied costs like registration cost, road cost, insurance cost can come under car financing agreement.
- Fixed payments allow for more accurate budgeting.
- Flexible, transparent and cost effective car loans can be availed by you.
- Competitive interest rates are available.
- Worry free procedure are available to avail this kind of loan.
- Streamlined car finance process ensures that your dream car is within your reach
- Regardless of your choice (hatch back, luxury sedan) they lend you loan.
- These loans can be taken by self employed, salaried, proprietorship and partnership firms.
- Car Loan tenure may vary from 1 year to 5 year
- You can calculate your monthly repayments using car loan calculator
- Banks provide transparent information about car loan
- Payments can be directly debited from nominated bank account.
- Even car dealership firms aid you in taking the loan
- A deposit may or may not be required and you may also receive certain benefits for both short term and long term.
Car loan can be taken by both salaried employees and self employed. Most banks offer loan that can be repaid within 5 years. The quantum of loan will depend upon your income, employment history and car make. Banks limit your EMI to 50 percent of monthly income.
Banks charge following fees from borrowers
Processing Fee– Generally 1 percent of loan amount is charged as processing fee.
Prepayment Charges– If you repay car loan earlier than prescribed time frame then lenders charge foreclosure fees of about 4 percent of foreclosure amount is charged.
Thus, these banks provide tailor made car loan products at attractive rate but it all depends upon your credibility.