Car Loan market is catching up in India with more than 80% car buyers opting for auto loan. With too many people opting for car loan there are equal number of banks and finance companies offering auto loan.
Hence, it becomes confusing as to which car loan company you should approach in order to get your car financed?
In order to choose the best offer from a car loan financer, you should take these factors into account -
1) Interest Rate
2) Your Budget
3) Down Payment
4) Third person Gurantor in few cases
8) Good car loan agent
In car loan, interest rate plays major role as this determines how mush money would be outflowin from your pocket every month. There is a cut-throat competition among the auto loan lenders when it comes to interest
rates. With big players such as - SBI and HDFC Bank ruling the car loan market. They have the least car loan rate of interest in the market. However, it is advised that you look for cheapest car loan interest rates yourself.
It is very necessary that you determine a budget that you would be willing to spend on your car. It is strictly advisable that you fix your budet before applying with the car loan agent or bank. Unless you determine your budget you would not be able to figure out if you would be able to pay the EMI that would be applicable once your car loan is approved.
Your budget may vary as per your needs and profile. Need, here, means your choice of car and profile means the auto loan amount that your bank would agree to sanction you depending up on your net or gross income, your age, your work experience, etc.
Down payment means the margin money that you are requireed to pay in order to take your dream car home after your car loan is sanctioned. This varies as per the choice of car you go for. This also imples that you must be ready to pay that amount of ash to the car dealer.
Third Party Guarantor for auto loan
This may happen sometimes that your bank may require a 3rd party guarantor for car loan approval. This usually happens if you have a bad credit history or you are too young with a few months of work experience or your income is too less. In such cases you need to arrange a third party guarantor to get your car loan approved.
Processing fee for car loan varies as per the auto loan providers - the banks and the finance companies. Some of the small banks charge high processing fee. So you need to conduct a survey of the auto loan market to find if your bank provides the auto loan for the least processing fee or not?
Forclosure of auto loan means closing your car loan before the fixed time period - that you pay back all the amount due to the auto finance company or bank. Some of the banks charge exorbitant rates for forclosure. You should therefore be sure that you survey well before you go ahead and file for a forclosure.
Good car loan agent
Many people do not pay attention to this, however, a good car loan agent can make your work very easy. An efficient auto loan agent can get quick car loan without any difficulty. Sometimes, your bnk may require you to visit branch or car showroom more than once. In such cases a good car loan agent comes handy.
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