Explore different car loan options to live your dream.
A car is not merely a four-wheeled machine; it's an embodiment of your personality. A car speaks more than just what lies below the hood. It shows the type of person you are and something that can help you enjoy life to the fullest with your near and dear ones. Whether we talk about a brand new car or a used car, a lot of factors come into play before you drive the keys home. One such factor is a car loan and its affordability on your pocket.
Car loans are part of the bigger picture of considering all options that come with buying a new vehicle. Before you go and apply for a loan for your car purchase, you must put together a budget plan that includes all set-offs like income, recurring expenses, and savings.
The price tag may deter many people from exploring new options, especially if they are unsure about the vehicle's value. This is where car loans come in as a solution to the financing problem. Countless companies provide online car loan services, and being able to choose from such a wide array is something that we can help you with. The interest rate on a car loan is usually between 8-15%, and the repayment period is generally between one and eight years.
Have you set your eye on buying used cars? If yes, there are few things you need to know about a used car loan. You can use a loan to purchase a used car with an established history of low maintenance and fewer frequent breakdowns. This means that since the vehicle has been on the road for several years, no major unexpected repair work will cost you so much. Loans for used cars come in different terms and conditions are issued on merit and repayment capacity of the borrower. The rate of interest charged on the purchase of used cars is slightly higher than the interest rate charged on the purchase of new vehicles. Used car loans have an interest rate of anywhere from 8 to 16 percent and can be repaid in as little as eight years.
When you need to make an unexpected purchase and don't have enough cash, a loan against your car can be helpful. You can quickly obtain money to purchase a new car or an emergency by using your current car as collateral. The loan amount is transferred to your account almost instantly if you are eligible for such a loan. For getting a loan against your car, you'll have to pay an interest of 14 to 15 percent per annum.
When choosing your car loan, the amount of money you need depends on how much you need to borrow to buy your car and what your monthly payment will be. Auto loans are usually between 80 and 100% of the car's value, but this varies.
This is how much your EMI (monthly payment) will be for the loan you have taken. This is inclusive of your processing fee, balance amount, and interest charged. Most financial institutions offer free EMI calculators that you can use to estimate your EMI if you take a loan.
Every bank will ask for an application processing fee. This is a small percentage of the amount you're borrowing. Banks may waive this fee for customers with good credit.
With so many banks and financial institutions offering car loans, you have to investigate each institution's eligibility criteria prior to applying carefully. Most financial institutions require that you be at least 18 years old to apply for a car loan.
Banks also have maximum age-limit criteria. You can get a car loan until you are 60 as a salaried employee. Self-employed individuals can avail of a car loan up to 65 years of age, provided they have Rs. 10000 income per month.
Banks want to make sure you've been consistent in your living arrangements and aren't going just to ditch a car they loan. They also want to be sure that the person has a history of paying bills and maintaining a stable life. If you have lived in one place for several years, paid your bills on time, and kept your credit card balances low, you are a safe bet to take out a car loan.
1. Can I get a loan for all makes of cars?
We finance most of the multi-utility and passenger vehicles available in the market today. Our long-term financial stability, experience in business practice, and connection to the best finance houses enable us to sway through the rough waters in the industry and come out on top.
2. What is the maximum car loan I can avail of?
The auto finance amount is based on the vehicle bought and the profile of the customer. You can finance up to 100% of your car if you have decent credit. This means more savings for you!
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