Imagine, you are watching cricket on your TV and there is an ad break between he over. In between those commercials, you see a commercial of a fancy family car. You know in your heart that buying a car is always on the cards and you have been planning for a very long time to buy one. The commercial triggers your desire and start exploring options on how many car models are available in the market and which one suits you the best. You talk to your friends and family and get a clear idea on which car you should buy. Considering your family size, you think of buying an SUV so that you can accommodate all of your family during short as well as long trips. It is an obvious thing that, SUVs are expensive and can shake your decided budget. So what would you do in such a case? Do you drop the plan? Do you settle for a smaller car? You know that would be a bad decision.
The straight answer to this problem is, you take a car loan! A car loan can act as a bridge between your dreams to reality. There are a lot of car loan options available in the market with attractive car loan interest rate but many of us lack information on what is the procedure of taking a car loan and what are the terms and conditions associated with the same. If you are that person, standing at the car showroom door and thinking how I proceed further then you are at the right place reading this article.
Today we will give you some insights on how a car loan works in our country,
Customer is King
With a lot of vehicle models to choose from and a lot of loan options available from different banks and non-banking financial companies, a customer is the king. You just have to decide on which car would you like to buy and everything later will be a smooth ride home. In India various banks and lenders provide up to 90% funding on the on road price of the vehicle.
After deciding on a vehicle, the next step will be to apply for a vehicle loan. After the application is submitted to the bank, the bank conducts an eligibility check if you are credit worthy of a loan. The eligibility check includes your age, residential place, your employment status, your salary and if you have any existing line of credit like other loans.
Your credit score check
After checking your eligibility, the bank then conducts a cibil score calculation to check if you have any previous defaults on your payments. Make no mistake thinking, your default was a long time ago and the bank won’t mind it. Do understand, the financial transactions stay on your report for a very long time and the lender can take those transactions into consideration to decide on the interest rates to offer.
Understand the loan terms and conditions
There are many types of loans available with the same lender with different terms and conditions. Read the terms and conditions of the loan before signing any document, this can lead to a nasty loan surprise in future. Understand your pre-payment charges, penalties, etc. so that you have a clear idea on what you need to pay as penalty when you default the monthly installment.
Take delivery of the vehicle
After the loan docket is signed the money gets disbursed within 48 hours and you get a call from the dealer that your car is ready for delivery. Before taking car out of the showroom, check the car thoroughly, check the manufactured date on chassis and if everything is in order, take delivery of your car and enjoy!
Buying a car in today’s time is not a big deal; if you have knowledge of the process you can own a car with some great hidden benefits. So get your research done before making any buying decisions.
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