Take a Look at the Key Essentials of a Car Loan Here

car loan

Gone are the days when buying a car is just a dream. Today, anyone can become a proud owner of his/her favourite car with the help of the plenty of options available in the marketplace. Yes, when we say options, it would not be wrong to say that car loan is undoubtedly one of the smartest options available for those who are falling short of cash so as to get closer to their dream wish. In order to help you in fulfilling your dream, there are numerous leading lenders that offer a car loan deal to you. But, you need to be careful here as finding the best lender amongst many is something which is not everyone’s cup of tea. It needs thorough research, time and a lot of hard work to locate the best lender.

Moreover, lenders these days offer various kinds of lucrative deals and offers to the borrowers, but you need to keep your eyes and ears open in order to stay away from being trapped. Instead of being lured by appealing and attractive emails or newsletters you need to watch out and trust only reliable lenders to get the best deal. Well, one thing that needs to be mentioned here is the fact that apart from looking at the image of the lender, there are other parameters as well that you need to look before saying yes to a lender. So, the big question is what are those factors? And, how you can grab the best deal? To know the answers of the questions mentioned above, just read the article below…

Interest Rate: It is the first and foremost factor you need to consider while going for a deal. Yes, it is undoubtedly the basic foundation that can either make or break the situation for you. At present, most of the lenders offer you this credit facility at an interest rate of  8.9%-13% per annum for new as well as used car. Now you must be wondering why artes are important? So, here’s the answer-If the rates are lower, your EMIs and interest outgo also reduces. And, if the rates are higher, the more burden will be on your shoulders to repay the loan with higher EMIs and interest outgo.

Tenure: When it comes to tenure, it is a matter of fact for 5-7 years. So, you not only need to mentally prepare yourself for the same, but you should be financially strong as well. You need to repay the loan till that period, so it would be better if you know the same earlier. However, you also need to check whether the lender offers you the same tenure or not so that you can get enough time to repay the loan.

Fees & Charges: It is also important for you to know about the fees and charges related to your loan. Usually, while availing the same credit facility, lenders do charge various kinds of charges from the borrowers. And, processing fee is one such thing that a borrower needs to pay to the lender. This one-time processing fee usually ranges between 0.50%-1% of the loan amount. So, you also need to be prepared to pay the same.  

Eligibility Criteria: Banks before offering the loan amount to the lender, do check the eligibility first. Until and unless a borrower does not match up with the eligibility norms set by a bank, he/she won’t be able to avail the loan. An individual needs to fit into the age, income, job stability,total experience, etc parameters so as to grab the best deal.

Documentation: It is no doubt another influential factor that can impact your loan journey. In order to enjoy a smooth and a hassle-free process, all you need to do is just check whether you have complete list of documents ready with you or not. Until and less you don’t have the documents ready with you, the lenders won’t be able to give you the loan as you have not meeting one of the basic eligibility norms.

Now that you are familiar with the key essentials of a car loan, hope you have an enjoyable journey while buying your favourite car in the future!   

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