Festival season has kick started with the first Navratra and major companies has offered heavy discount and offers to consumers to get the maximum sales. Big sales are running on e-commerce site as well as in brick and mortar stores. This festive season car companies are not too behind and also offering big discounts and freebies to the consumers, so it is the best time to own a car and live your dream.
Nowadays buying a car does not have a significant impact on cash flow as you can avail Car Loan for almost 100% of your road price from Banks or financial institutions. Car loans interest rate is also very attractive and ranges between 9-11% per annum. You may precheck/calculate online EMI(equal monthly instalment) through easy to use online EMI calculator car loan. So, it will be easy for you to estimated cash outflow and manage your finance accordingly. Further car companies also have arrangements with financial institutions under which special interest subvention scheme are given to the consumers. You can choose from range of options to select one best suited to you.
After zeroing down at your car, then question comes in your mind from where you should avail the loan for it. While selecting the lender for car loan you should keep in mind these major factors like Interest rate, maximum period of EMI, Processing fees, Flexible Emi and tenure option, penalty on prepayment of loan vs zero foreclosure charges , transparency in all charges, arrangement of lender with the car companies, value of freebies for you not the notional value shown by lenders, minimal documentation, maximum amount of loan offered road price vs ex showroom prices, faster processing of loan, hassles free disbursements, special incentives and offers by your current bankers etc. You should evaluate the offers of the lender from each and every angle and aspects so that your cost is minimum and services are best.
You can avail the car loan if you have a steady income source which can be either from salary or from business/ profession. Lenders provides loan maximum 2.5 to 3 times of your annual income and minimum income criteria though vary from bank to bank but settles near 2 lakhs per annum. You must not have defaulted you earlier loan payments which also includes your credit card payments. So, your overall credit scores play an important role to make you eligible for a handsome amount of loan at a lowest rate. Few banks have also linked the Interest rates with credit scores. If you have salary account in a bank and/or you have a good credit scores then your bank may offer you a pre-approved car loan up to certain amount as per their internal assessment and these loans are disbursed generally in one two days with minimal documentations.
To avail the Car loan or any type of loans, there type of documents are required which are Income proof, identity proof and residence proof. Identity proof can be any one from ration card, PAN, Aadhaar, driving license, passport etc. For income proof you have to submit your form -16 /salary certificate, Income tax return for last years and for residence proof any one of ration card, Aadhaar, voter id, Bill of landline telephone or electricity bill etc may be submitted.
Conclusion is that you should not go for a loan only on the basis of interest rates alone but also check other ancillary terms and charges like processing fees, prepayment and foreclosure charges and other as discussed above so that no problem arises during the tenure of the loan