How to Choose the Best Car Loan in

India?

Car Loans in INDIA There are a number of financial institutions and banks in India that provide

varied banking solutions, loans, investment options and many more services according to an individual’s requirement.

All banks are competitive in terms of offers, discounts and the interest rates; hence, it becomes worrisome to select the best amongst the hundreds of alternatives.

There are more than a hundred banks in India which provide Car loans to all classes of people on the basis of affordability.

The main and foremost feature to look in the Car loan is the “Car loan interest rates” along with the repayment methods. It should be competitive enough with no hidden charges, quick processing time and the transparency throughout the procedure.

Types of Car Loan Interest Rates

Secured Car loan Unsecured Car loan Variable Interest Rates Fixed Interest Rate Split Loan

Secured Car loan: These are loans provided

against some kind of security or guarantee, such as a loan against property, any valuable asset, or jewellery or some legal documents.

If any default situation arises, then the pledged thing becomes the lending institution’s property. In this case, the interest rates are comparatively less.

Unsecured Car loan:

Loans are issued without any security, but the Car Loan interest rates are higher as the loan is disbursed under the lender’s risk.

Variable Interest Rates: The interest rate may increase or decrease depending on the

market fluidity.

Fixed Interest Rate:

Here, the Car Loan rate of interest is fixed throughout the loan tenure.

Split Loan:

Some lending institutions or banks also provide split loans in which half of the loan amount is of variable type and the rest would be of fixed type.