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10 Key Things To Know Before Finalizing A Car Loan...

22 August 2015, 10:05 AM

Whether you are going for used car loan or a new car loan, each one comes with its own terms and conditions. The best way to cope up with these is to make a sharp comparison between the offered options and apply for the best one without wasting any time. As soon as you will apply for the auto loan, the bank will contact you or send someone who will help you in taking the process further. Apart from answering their questions, it is also necessary to get answer to your questions or at least get to know everything that you wish to know. Here are some questions that you must ask the agent before finalizing the car loan in India.

  1. How To Get Car Loan? Ask the agent to clarify the complete process step by step before beginning the paper work. Check for the number of people that will involved and ensure you are aware of the complete process right from getting a loan to paying back the complete amount and closure of files. It is better to know beforehand what you are getting into than to regret halfway.

  2. Can The Application For Car Loan Be Made Over Phone or Online?: Know that application for the loans can be made only manually. There is no process to apply for anything over phone or through internet.

  3. Pertinent Question About The Down Payment? The down payment might not necessarily always be a huge amount. Therefore, have no fear, you may negotiate the amount of down payment with the lending organization. There are financial institutes that offer multitude of options with respect to down payment and you may choose any as per your comfort zone.  In case, you have nothing to pay the initial amount there are options available to help you out of such situation.

  4. The Inevitable Question Of Eligibility: What makes you eligible for car loan in India? The question makes a greater sound when you are applying for used car loan. There are several rules regarding auto loan eligibility in India. For used cars loan, you are eligible only when the age of your vehicles doesn’t exceed 4-5 years. For the new car, the institute may offer 90per cent of car’s value considering your credit history and income. But the final value would still depend over the lender and their criteria.

  5. How the first time buyer gets benefited?: It is no hidden fact that first time buyers get some special preferences over the used car loan applicants. You will get an array of schemes and offers to pique your interest in an organization and get-in more customers. One of the most impressive offering from these is the down payment options that can really help in acquiring the best deal.

  6. What Is The Interest Rate And Its Type? Mostly people want to know more about the EMIs than the total amount. Nevertheless, it is recommended to check the auto loan interest rates which will mainly depend over your credit worthiness and the lender. Each lending organization has its own way of deciding that, so the loan interest rates may vary for the same amount of loan from one financer to other.

  7. What Is The Loan Term Or Tenure? Never ever forget to enquire about the loan terms or tenure. It is the length of time for which you will be required to pay back the loan. In case of car loans in India, the terms usually fall between 24-36 months. The most important point to remember here is that the interest rate will be directly proportional with the tenure.

  8. The Procedure To Payback EMIs? There are mainly two options presented to car loan applicants in India in this respect: either via post-dated cheques or the bank debits the amount per month from your account using the Electronic Clearing System. With respect to car loan you can only pre-pay a 6-month or annual amount, no part payments are allowed.

  9. What Documents You Need To Offer? Like any other loan, here too, you will be required to submit your proof of identity, residence proof, and current insurance and loan application.

  10. What Are The Late Charges On Loan? Read the terms and conditions carefully, it will give you a clear idea about the late charges. Apart from that, make sure to clarify all your doubts with the agent. 

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