Car loan can help you buy your dream car
Article by Ansh Kumar Sharma
Car loan or auto loan is provided by most of the banks and financial institutions operating in India. With the introduction of new luxury cars in the Indian market more and more people are lured towards purchasing one. However lack of ready finance available in order to purchase a vehicle forces individual to seek help in the form of car loan. Car loan is alternative way by which you ask bank or a financial institution to finance your vehicle and you give them an assurance of repaying the money along with the interest in a pre-defined duration of say three -five years through EMIs.
Applying for a car loanApplying for a car loan is a simple process. You can either apply directly from the car showroom from where you are making the purchase at, since now- a- days most of them have tie-ups with recognised banks for car loans, or you can personally visit the bank branch from which you wish to take a loan with. The increasing competition in the car loan sector has forced banks and financial institutions to avail car loans at extremely competitive interest rates. Thus it is advisable to check with several banks and financial institutions for car loans before finalising. You can also check online with different banks and financial institutions about their car loan offers. Now-a-days banks also offer online quotes for car loan. Comparing different quotes from several lenders stressing on factors like the total cost of the car loan, interest rate, tenure available and monthly payments can help you save time, energy and most importantly your hard earned money.
Car loan basicsCar loans are secured loans as the purchased vehicle is the collateral against the loan. Incase of defaulting in the payment of the loan the lender has a right to repossess the vehicle. Thus it is indispensable to calculate the amount of car loan that can be borrowed in order to make successful repayment. Amount of car loan taken also depends on other factors like the cost of the vehicle and the initial down payment available. More amount available as a down payment implies less amount of car loan. Thus even banks and financial institutions lays stress on factors like cost of the vehicle, down payment made, borrower’s profession, his earning before finalising the amount of the car loan that can be made available. These measures are taken by lenders in order to assure successful repayment of the car loan. Also from the borrower’s point of view it is important to read fine lines of the car loan document in order to avoid any unknown terms and hidden charges.
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About the Author
Ansh Kumar Sharma an expert financial analyst and has been offering his valuable advice on financial planning. He has provided comprehensive fee-based planning services to individuals, corporations and family offices.
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