The thought of buying your desired four-wheeler is itself quite exciting. It is like taking the first big plunge towards a happy and prosperous life. A car cuts down your travelling hassles and extra expenses while improving your societal status. But what if you can’t afford the car that you desire to own? You can’t obviously spend all your savings on your car. In such a situation, it is a car loan that comes to your help. These are financial advances made by banks or financial institutions to help people buy the desired car for private or commercial use.
At present getting a car loan from banks has become very easy and convenient. An easy monthly instalment option is that you need to repay the car loan amount. So, this becomes a win-win scenario, where you can act smart by purchasing the ideal car for yourself and also avoid the unwanted debt. But when you are availing a car loan for the very first time, it is extremely important to know the car financing basics before you take the plunge.
Hence as a beginner, enlighten yourself with the below-mentioned facts about car loan:
The basic eligibility particulars to get a car loan are as follows:
If you are eligible to apply for a car loan, you should move to the next step of documentation. In order to make sure that the loan process is smoothly carried on by the banks or any other financial institution of your choice, it is necessary to provide the following mandatory documents:
A car loan can be applied both online and offline. Applying it online is the easiest way to reduce the hassles. Just visit the bank portal with which you want to place the application or you can place the application through a reliable third-party website. The steps that are involved in the filing of application and approval of car loan are as follows:
The applicant needs to decide the car model at first. Then the bank will provide a maximum of the funding based on the price of the car model. Once this is done, the applicant will have to insure and hypothecate the car for further safety. It is then that the interest rate is decided and the process of EMI is ascertained. EMI should be paid without any failure to ensure the car doesn’t get repossessed. Whatever problems you might face, you have to pay the loan within the tenure.
Here are a few factors that you need to consider while availing a car loan for the first-time:
Nowadays, the car loan process can be carried out completely online too. It is vital to first compare different banks, what they are offering and then decide what to do. You can also visit third party websites to have a clear idea of the whole process of the car loan. Considering important factors such as down payments, interest rates, the term of the loan and the length of the loan help you ascertain your choice clearly.
You shouldn’t hesitate to ask about the terms and conditions of the loan. Moreover, find a lender having a pre-qualification or a pre-approval process as it will make it easier for you to negotiate with the lenders. Check, recheck and double check to be sure of the car loan you are about to take. Make a wise and make a smart decision!