A car loan is a loan that a person takes out in order to obtain a car. Car loans are structured as installment loans and are secured by the worth of the vehicle being purchased. Canara bank is one of the banks that provides car loans.
A luxury that one wants to afford after a home is a car. Having a car makes one's life pleasant. You can drive to work instead of using crowded public transportation or use it for a leisurely weekend getaway.
Earlier, buying a car was a breakthrough in one's life as one had to shell out an immense amount of money, but now one can easily take a car loan. The car loan EMI calculator helps you determine the equated monthly installments (EMIs) you have to give the lender each month until the loan is paid.
The EMI is based on the loan amount, tenure, and interest rate. The calculator will inform you how much EMI needs to be paid.
The online application process is faster, paperless, and hassle-free. The general documents required for a car loan are:
First and foremost you require identity proof such as Permanent Account Number (PAN) Card, passport, driving license, etc.
Then comes the Address proof such as Voter ID Card, passport, etc.
Of course, the Bank needs to know if you are of the legal age to drive the car and/or capable of paying back, so they need your age proof.
Then there are your Photographs that are required for any formal procedure as you must already be knowing.
And lastly, your income proof such as 3 months' salary slips, 6 months' salary bank account statement, latest income-tax return, etc.
Some lenders and banks also ask for a car insurance copy and driving license before accepting the loan application.
Fill out the loan documents yourself so you can guarantee everything is accurate. Pay attention to the total loan amount. Keep track of what the total loan amount is. Some lenders or banks may inspire you to spend more on the loan by simply increasing the term, which decreases your monthly payments. Once you get the loan proposal, don't assume the lender has given you the best package.
Let the lender know you are applying with other organizations. Avoid conditional financing, which in other words is, you might not be locked into your quoted loan. Utilize online tools to compare loans. Read your documents thoroughly. Remember, this is a binding agreement. Make sure the contract includes everything you have been promised.
Conclusion:
The application process for a car loan is simple. Once you have selected the make and model of the car you want to obtain, you can analyze the different car loans available at various banks and check your eligibility with each of the banks.
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