Are you really want to get a loan for your car?. If you want to buy a new or used car using loans, you need to take care of few important things. Borrower must consider few things while applying for a car loan to get a best deal. Here are few things you should know before you choose a car loan.
Down payment : Down payment is the amount you will have to put forth through your own resources. Generally bank's offering 85% of on road cost of a car. The rest of money should be contributed from your personal resources. To reduce the burden of your car loan, pay the maximum possible down payment for your car.
Interest rates : Compare the interest rates of various banks or financial companies before applying for a car loan. It is the most important thing. Make sure to check the interest rate before applying for a car loan. To reduce the interest it is better to maximize down payment. Interest rate depends up on the type of car loan and the tenure.
Other Charges : Car loan charges other than interest charges can vary by bank or lender's company. Common car loan charges are-
Processing Fee
Preclosure charges
Stamp duty charges
Part-payment charges
Late Payment Fee
CIBIL Score : If you are planning to apply for a loan, make sure to
check your credit score. If you don't have previous history of loans or
credit cards, banks provide loans based on CIBIL score. For individuals
loans approved with a CIBIL score greater than 750.
Monthly installment : The monthly installment for your car loan will depend on total amount of your loan, total tenure and your interest rate. It also depends on your down payment. If you pay more down payment, automatically your loan interest rates and monthly installment will decrease.
Tenure : Generally it depends on your income and the loan amount. You must have sufficient funds throughout the tenure of your loan. To save money you need to decrease tenure.
Offers and Discounts : On festive sessions you will find many attractive offers and deals offered by various banks or financial companies on car loans.
Offers and Discounts : On festive sessions you will find many attractive offers and deals offered by various banks or financial companies on car loans.
These are some of the things you need to keep in mind before applying for a car loan.