Buying a car is neither easy nor cheap. Cars are expensive, and they should be as well, when you think about the fact that they are a luxury item. However, you can always avail a car loan to make sure that the expense of the car does not see as heavy. But, before signing a car loan, you should know about the following aspects to make sure that you enjoy maximum benefits.
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Things to Remember before Signing Car Loan
Just like with every other loan, pay particular attention to the car loan interest rate. But, remember that it is not the only thing that you need to remember. So, don’t sign a car loan just because the interest rate is low.
Tenure of the loan
The duration of the loan or tenure is very important as you have to pay not just the total interest but also the principal amount in that duration. So, you should know that if you select a smaller tenure then you may end paying more with a higher interest rate.
Car Loan Tax Exemption
You should know that not every car loan is eligible for tax exemption. Car loan tax exemption is only available to cars purchased for commercial purpose. Under Section 80E of the Indian Income Tax Act, car loan tax exemption will not be granted on any other car loan.
Do not just apply for the loan without checking the eligibility criteria. It lets you know whether you are eligible for the loan or not. Therefore, you may be able to save time as there might be a criteria that you may not fulfill.
Just like every other loan, EMIs are a crucial aspect of car loan. So, you should know that if you select a higher value of EMI and lesser number of EMIs then you will end up paying more as the total loan amount will be more.
You should always use the loan calculator to determine whether a loan is affordable. In addition to providing you the EMIs, tenure and car loan interest rate, it will also let you know whether you can manage the repayments.
Used Car Loan
If you are thinking of buying a used car, then you need to know that not all lenders allow loans for used cars. So, ensure whether you will be able to avail loan for a used cars.
Instant Car Loan even For Used Cars
As mentioned above, there are a lot of lenders that do not allow loans for used car. However, PaySense allows you to borrow for buying a second hand car. Additionally, if some amount from the loan remains after the purchase, you can use it to repair the used car.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs