Once a person is satisfied with all the basic needs in life then he will look out for a luxurious life. A person always tends to seek for the betterment of living standards. Having a car is one such instance. During the olden days, only the rich and privileged people could afford a car. Whereas, for the poor and middle-class people, owning a car is something they could only dream of. Nowadays anyone from a sustainable financial background can afford a car, thanks to the several schemes and car loans being offered by the banks. You just need to visit your nearest car showroom where you’ll come across bank representatives. Every bank has different criteria for car loan finance which you can choose according to requirements and if you can meet up with certain criteria you’ll be furnished with the cost of the vehicle as a loan.
How Much Loan Will You Be Offered?
Buying a car loan is not associated with your budget; however, EMI should not exceed 20% of your monthly income. You need to keep in mind that the furnished loan is given to you against the ownership of your car. If you fail to reimburse the loan, the bank has all the right to seize your car and sell it to recover the loan. Some banks first confirm your credit rating then proceed to loan because if your bad credit rating you can face some difficulties in getting a car loan but if you still able to take the loan then you can pay installments in time and improve your credit ratings.
Tenure of the Loan:
A bank furnished the loan from anywhere between 1-7 years. It depends on your repayment capacity. According to your capacity, you can opt for the suitable tenure. The lower the tenure, the lower is the interest. Since the tenure is less you must pay higher EMI, and hence you’ll have to pay less interest. If you are willing to re-sell the car and opt for a bigger car vehicle with no loan amount is much easier to sell due to less paperwork. If you are going for a higher tenure the EMI is less and easy on your pocket.
A person living in India needs to provide certain documents before applying for a car loan such a Permanent Account Number (PAN) Card, Driving License, Aadhar Card, Voter Id Card or Passport as identity proof. The person is also required to submit proof of age and recent passport size picture. For the proof of income, the person is required to submit three-month salary slips, at least 6 months of salary bank statement and income tax return. These documents should be self-attested along with the document of the car.
Important Points to Consider:
When buying a car it is very important to consider all the buying options. You should also think about which car you should opt for. You need to have a proper idea about how you are going to pay for it and several different options. Each option has their pros and cons. While you are on a bad credit getting a car loan can seem a hell of a struggle. There are still some options available to get a car loan even if your credit is not clean. Keeping an eye on several schemes offered by different banks is the key here. Nowadays there are several different mobile applications also available for you to compare EMIs offered by different banks and choose one best one that suits you.
On a different note, the market is filled with frauds. When you are going to spend so much money on a car, it is always better to buy from the trusted suppliers and contact directly to the bank to avoid any fraud and miscommunications. Check the documents carefully before signing them and handing over to your bank agent. After all when you are driving away your new car, you’ll enjoy a swift ride, isn’t it?