How To Get The Best Car Loan Deal In India
As compared to earlier times, buying a car of your choice is relatively easy these days, all thanks to the various financing schemes offered by banks and financial institutions.
Getting a bank loan for financing your vehicle purchase is hassle free as you would find bank representatives inside the car showroom. If you fulfill the eligibility criteria, you are furnished up to 85 -100 per cent of the cost of vehicle as loan. Apart from that, there are some online services available that provide you with car loan, you just have to access them via internet.
How Much Loan Should You Opt For?
Though buying a car on a bank loan does not disturb your budget, your equated monthly installments (EMI) should not exceed more than 15- 20 per cent of your net monthly income. You need to remember that the vehicle loan is a secure loan given against the ownership of the vehicle. The car is the security for the loan, in case one fails to repay this loan, the bank can take possession of the car and sell it to recover their money. Hence, be careful in choosing how much loan you opt for. Sit with you family and calmly discuss it based on your overall expenses.
Tenure Of The Vehicle Loan
A bank furnishes a vehicle loan from anywhere between 1 and 7 years. Depending on your repayment capacity, you can opt for the tenure accordingly.
With a lower tenure, pay less interest on the overall loan amount. Since the tenure is low, the outstanding loan amount reduces faster due to the high EMI and, hence, you end up paying lesser interest. Also, if you want to re-sell the car early and upgrade to a bigger car, a vehicle with no loan.
However, for a higher tenure, the EMI you pay is easy on your wallet but, the interest on the overall loan amount is more. Also, suppose there is reduction of lending rates by the regulator. Then, the chances of you getting the benefit of reduced interest outflow is higher for a higher term. This is because most loans are linked to base lending rate. This is decided by bank which is dependent on the lending rate from RBI.
Documentation Needed For The Loan
A person who opts for the bank loan would need documents such as PAN Card, passport, driving license as the proof of his identity. For his proof of address, he would document such as voter ID card, passport or the aadhaar card. He would also need to submit his proof of age and his recent pictures. For the proof of income, he would need to submit documents like 3 months’ salary slip.
How OVX India Can Help You Get A Car Loan
OVX India is one of India’s Largest upcoming Online Marketplace which you can access from anywhere in India. Just Log on to OVX India, and search for Car Loans, under category and provide a location. Now, based on your location, the page takes you to list where different agencies providing Car Loan is shown. Choose the option that best suits you. It’s that Simple!
Car Loans Made Easy!
If you liked this article, check out another cool article on How To Buy Your Dream Car.
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