Factors to be

Considered While

Selecting a Car Loan

Selecting a Car Loan

CAR LOAN INTEREST RATE

PROCESSING FEES

TERMS AND CONDITIONS OF THE LOAN

CAR LOAN ELIGIBILITY

DOWN PAYMENT

THIRD PERSON GUARANTEE

Car Loan

PURCHASING A CAR IS A DREAM FOR MANY PEOPLE IN INDIA. THIS DREAM IS MADE POSSIBLE BY CAR LOANS OFFERED BY BANKS, WHICH IS AVAILABLE VERY EASILY TODAY.

Car Loan Interest rate

CAR LOAN INTEREST RATE IS A VERY IMPORTANT FACTOR, AS THIS DETERMINES YOUR MONTHLY OUTFLOW IN THE FORM OF EQUATED MONTHLY INSTALMENT (EMI) AND AS A RESULT, YOUR SAVINGS. (NEW CAR AND USED CAR)

Processing Fees

IN ADDITION TO THE INTEREST, YOU WILL ALSO BE REQUIRED TO PAY OTHER CHARGES LIKE PROCESSING FEES AT THE TIME OF AVAILING THE LOAN.

A LATE PAYMENT ENTAILS YOU TO PAY A PENALTY OF AROUND 2% EVERY MONTH. COMPARE THESE CHARGES BETWEEN DIFFERENT BANKS.

Terms and conditions of the Car loan

EVERY LOAN COMES WITH TERMS AND CONDITIONS. MANY A TIME, BORROWERS DO NOT READ THESE PROPERLY BEFORE SIGNING THE DOTTED LINE.

THIS CAUSES PROBLEMS LATER, AS THEY DISCOVER THAT THERE ARE HIDDEN CHARGES OR OTHER UNCLEAR TERMS.

Car Loan Eligibility

IF YOU APPLY FOR A LOAN AMOUNT WHICH IS MORE THAN WHAT YOU ARE ELIGIBLE FOR, THEN THE LOAN MAY BE REJECTED. THIS WILL AFFECT YOUR CREDIT SCORE.

Down payment

THE BANK WILL ONLY FINANCE 75%-80% OF THE COST OF THE CAR. THE REMAINING AMOUNT, WHICH IS THE MARGIN AMOUNT, WILL NEED TO BE CONTRIBUTED BY THE BUYER.

ANALYSE THIS AMOUNT AND OPT FOR A LESS EXPENSIVE CAR IF YOU THINK IT IS A STRETCH ON YOUR FINANCES

Third person guarantee

SOME BANKS MAY REQUIRE THE BORROWER TO PROVIDE A THIRD PARTY GUARANTOR FOR THE LOAN, WHILE SOME BANKS MAY WAIVE THIS REQUIREMENT IF YOU HAVE A GOOD CREDIT HISTORY.

A CAR LOAN IS A NECESSITY FOR MAJORITY OF CAR BUYERS IN INDIA. PROPER PLANNING AND ANALYSIS OF THE CAR LOAN AT THE TIME OF SELECTION HELPS IN IRONING OUT MANY PROBLEMS WHICH MAY COME UP AT A LATER STAGE.

BANKBAZAAR

THANK YOU FOR CHECKING THROUGH OUR SLIDE. FOR MORE INFORMATION ABOUT THE CAR LOANS FROM DIFFERENT BANKS ETC., THEN JUST BROWSE THROUGH BANK BAZAAR.

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