Check out the given key points to easily process your car loan application and get a good deal on car finance.
Car loans have helped millions afford their dream cars. It has drastically changed the scenario of the automobile domain. All you need to pay now is a fraction of money as down payment. The rest can be financed through various loan schemes and companies at justified interest rates. This remaining amount can be conveniently paid back as EMIs over a tenure of 2-7 years.
If you too are planning on availing the facility of car loan, this article will tell you all the bullet points you should consider beforehand.
Look for the right deal
‘Samajhdar Bano, Sahi Chuno!’ tagline of a popular commercial fits here. Don’t be in a hurry while selecting the right loan scheme for you. Rather, be patient and look for all the details, special offers and special schemes.
Details include pre-payment charges, interest rates, processing fees, etc. Sometimes, the processing fee alone can go up to 10,000 Rs. Also, Interest rates on car loans can be anywhere between 8.80% and 16%, depending on factors like the lender, car model, employer, repayment capacity, credit score, etc. Therefore, while selecting your lender, choose the one that imposes the least restrictions and charges the least prepayment & processing charges.
Another important thing is to look out for special schemes and offers during festivals seasons. Those are the times when the loan companies offer the best deals. You can also log into www.carjasoos.com and be the first one to get a dig at the best offers.
Know your wheels
In case you are planning to buy a pre-owned car, make sure that your bank will provide you financial aid. Different banks have different policies and T&Cs when it comes to sanctioning loan for used cars. A used car’s eligibility is judged on parameters like age, make, model and condition.
Be loyal to your bank
Consider your own bank first while considering a car loan. Every bank works on loyalty points. They provide special offers and rates to their existing customers. They can impact your overall cost.
However, it is extremely important for you to get a quotation from various banks and agencies before applying for a car loan from one specific lender. On the basis of their individual rules and criteria, every bank quotes different rates. This way you will come to know their rates along with other associated financial charges.
Check your CIBIL Score
Before you apply for a car loan, first check your CIBIL score. This is the pivotal aspect of a car loan as on the basis of your score, the bank/lender will decide your eligibility as well as the interest rate of the loan.
While a high CIBIL rating will make you eligible to avail a low-interest rate loan, a poor score can result in a higher interest rate and might even lead to rejection in certain cases. The minimum credit score preferred by banks is 750 or more.
Secure the lowest down-payment
You should be aware of the exact price list of all the cars you are considering for purchase. Price variations like on-road prices and ex-showroom prices can make a big impact on your loan amount and rate.
Make sure to have a detailed Q&A session with your banker or lender to get a complete round-up on the loan process and details. Always try to secure the deal with the lowest down-payment as it will inflict the least financial strain.
Assess your EMI repayment capability
When plunging for a car loan, you should always self-assess your affordable EMI. An affordable EMI amount will be one that will fit your monthly budget without overshooting it. This includes checking all the existing EMIs for education, home, or personal loans (if any) and then deciding if you would be able to pay your car loan EMI efficiently.
Not assessing your EMI capability beforehand can be detrimental. It can result in default, debts, and finally repossession of the car. To plan the monthly EMI properly, you can make use of the EMI calculators offered by ‘The reliable third-party financial website’- www.carjasoos.com. Using the online tools present here, you can calculate the EMI on the basis of the interest rate and get to know the affordability of the loan. Easy!
Work on the above-mentioned bullet points and you will be all ready to decode the enigma of the car loan process.