Retail Car Loan
Many of us want to own a car but lack the required money to fulfill our dream. However, with the proliferation of banking services and easy availability of car loans, one can easily buy the car on EMIs. The service of car finance is available for both new cars and pre-owned cars with many different banks and financial institutions in market offering the vehicle finance facility to prospective buyers at attractive interest rates.
You can easily avail a loan of up to 80-100% of the car’s ex-showroom price though has to arrange for the down payment, registration charges, road tax, and insurance cost. That said many commercial banks today offer up to 100% on-road finance to customers having good CIBIL score and credible loan repayment record. You can apply for the car loan EMI Calculator online or alternatively can visit the branch for completing the necessary formalities for availing the loan facility.
It is always advisable that you take quotations from different dealers while deciding to avail loan facility for your desired car. Different dealerships have different tie-ups with banks and hence the quotations offered by them will be different in terms of interest rates. Therefore, in order to clinch the best deal, one should visit at least two or three different dealerships and take quotations from them regarding financing the car and interest rates.
It is also important to keep all the documentation handy with you why you raise the application for a car loan. Some of the important documents that the bank or financial institution will ask for include a bank statement, income proof, photo identification card, residential proof, and income tax returns filing for the previous three years. Providing all these documents to the banks swiftly will considerably reduce the time bank will take to process your loan application.
EMI Calculator
If you want to avail finance facility for your next car purchase, the interest rate is one of the most critical parameters of consideration. Along with the interest rate, pay close attention to the processing fee, term of repayment, and loan to value ratio. In order to make loan repayment easy for customers, banks offer the facility of equated monthly installment (EMI).
Before financing the car, it is recommended that you work out how much EMI you have to pay for availing the facility. Depending upon the loan amount and repayment term, the EMI will tend to change. Higher the interest rate, higher you have to pay in terms of EMI while opting for the longer repayment term will mandate you to pay less EMI. You can use car loan EMI Calculator which is easily available online to find out how much EMI for particular loan amount.
While availing loan facility, make sure you consider the less talked about facts like processing fee and service tax. Many loan organizations offer low-interest rates to the customers but charge the huge amount of money while processing the loan. Therefore, it becomes important for you to ask the bank about the processing fee and then make a considerate decision. Similarly, the issue of service tax also needs to be considered as it adds to the overall expenses borne by you in the future. Of course, charging service tax one time on the lump sum is not an issue but then many companies charge service tax on a yearly basis which will unnecessarily add to the cost. Also, ask the bank about the foreclosure penalty as most of the loan seekers are not aware about it. Different banks have different rules for foreclosure penalty so you need choose the bank wisely.
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