In today's market, the buyer has an edge over the seller, having not only a variety of choices made available at his doorstep but also by having easy access to information. In this scenario, getting the best deal is a simple process. It is almost the responsibility of the buyer to do his homework and be aware of the benefits he is entitled to receive. The process of buying a car loan in India is no different. The prerequisite of applying for a car loan is creating a budget for yourself. The purchase value of a car does not indicate its future worth. It is useful to study the depreciation value of your car value by studying the prices of used cars. Other details like the fuel price, the mileage of the car along with the maintenance it will require, also need to be kept in mind.
Once you have set your limit, research online for the best car loan. There are readily available websites that compare car loans according to your needs. While interest rates are the main factor in picking a car loan, you should go with the one that allows you to best keep up with your preferred payment schedule. Interest rates could be fixed or floating, depending upon the specifics of your loan. The car you buy will be the security for the amount you borrow. Most car loans have criteria for eligibility, the most common being that the applicant should have been working for a minimum of two years and should have a base salary of Rs. 1,00,000 per annum. It is also essential that they be under the age of sixty when the loan reaches maturity.
The actual process of buying a car loan in India can be done online as well as in person. Essential documents include proof of identity, residence and income. Banks also require details about the car (number of years from the model year, the mileage, etc) you will buy along with details about the dealership you have purchased it from. Insurance is vital to this transaction. In a few cases, the loan amount may be changed after your papers have been substantiated and a credit appraisal has been performed. The draft of the final loan agreement is sent to the dealership as well. The bank in question is hypothecated before disbursal of the funds, so they can appropriate the car if the EMI isn't duly paid. While it is easy to avail a car loan, all these details must be considered before making a decision.
Once you have set your limit, research online for the best car loan. There are readily available websites that compare car loans according to your needs. While interest rates are the main factor in picking a car loan, you should go with the one that allows you to best keep up with your preferred payment schedule. Interest rates could be fixed or floating, depending upon the specifics of your loan. The car you buy will be the security for the amount you borrow. Most car loans have criteria for eligibility, the most common being that the applicant should have been working for a minimum of two years and should have a base salary of Rs. 1,00,000 per annum. It is also essential that they be under the age of sixty when the loan reaches maturity.
The actual process of buying a car loan in India can be done online as well as in person. Essential documents include proof of identity, residence and income. Banks also require details about the car (number of years from the model year, the mileage, etc) you will buy along with details about the dealership you have purchased it from. Insurance is vital to this transaction. In a few cases, the loan amount may be changed after your papers have been substantiated and a credit appraisal has been performed. The draft of the final loan agreement is sent to the dealership as well. The bank in question is hypothecated before disbursal of the funds, so they can appropriate the car if the EMI isn't duly paid. While it is easy to avail a car loan, all these details must be considered before making a decision.
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