A car is no more a status symbol. Whether you wish to escape the atmospheric heat or the ever-increasing air-pollution, upgrading from a two-wheeler to a car has become a no-brainer. However, you may not have the ready cash to buy a new, or even an old, car outright. You may have to take a car loan, which is easily obtained these days from all banks and financial institutions. Car loan interest rates in India vary from bank to bank, depending upon the amount of finance required to the tenure of repayment. You can use the numerous car loan calculators online to decide the amount and tenure of the car loan you need to take. Car loan interest rates in India generally range between 10% to 13%. You may be able to get an even cheaper car loan interest rate, as the competition is so intense that banks try to undercut each other, and you can negotiate if your credentials are strong.
Here We Outline A Step-By-Step Guide on Taking Out A Car Loan.
- First of all, select a car that you wish to buy, because there are a myriad number of models in every price range, from 4 lakhs to upwards of a crore. Do your online research thoroughly to select the car you wish to buy.
- Once you have identified the car you wish to buy, you will need to check your eligibility for a car loan. The advantage of taking a car loan is that you need not settle for the cheapest car, but can go for a mid-ranger, or even a top-tier machine, provided you can afford to pay the EMIs. The best way to check your eligibility to take a loan is to use an online car loan calculator.
- When you know your eligibility, you can easily decide on the amount of loan you need to take and fix the tenure of your loan as per the quantum of the EMIs you can afford to pay. Car loan tenures range around 7 to 8 years in India. While some banks insist that you make a down payment, if you do your research thoroughly you might come across a bank or an institution which will give you a loan amounting to 100% value of the car.
- Get all the documents required by the bank to take a car loan, and apply for the loan. Most banks have online application forms that you can fill out in minutes.
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