The key points you should check before going for the car loan will help you out to get the best car loan interest rate; also, the points are:
Fix the budget: first of all, fix the budget before choosing the car; it will help you, in the long run, to spend the money according to your limit. After selecting the vehicle, always make sure that can you invest two times the car value because it is not only the one car; it includes the price of the fuel, maintenance fee, insurance fee etc. after calculating these things, then only go for the loan.
New car or used car: after fixing the budget, make clarity in your thought, why do you need this car and which car suits your budget. According to your need, grab your vehicle.
Tenure of the loan: when you are applying for the loan, always discuss the tenure with the lender. It is very crucial for the loan.
Foreclosure: Always ask the lender for the loan foreclosure penalty and charges.
Your car is your dream investment, so before shaping your dream, always ensure the limit and possibilities to achieve the vision.
Arranging money is the first criteria to dreaming about the car cause it helps you out to submit the funds as your downpayment. Downpayment is the first key to your car loan. With this process, you can enter at the first step of the car loan. Downpayment is dependent on the car; at a decent amount of money, you should invest as a downpayment. But it is advisable that you should submit a good amount of money as a downpayment; it will help you in your future when you pay the instalments for the car loan.
After that, check for your CIBIL score. It plays a vital role in any loan. From the PAN card, any lender can know about the cibil score. CIBIL score actually represents your previous
Loan details will affect the impact of your loan history and your reliability towards the lender.
More than 750 scores act as a good cibil score; it will help you to get a good amount interest rate, you get a good discount on the car loan interest rate and gives a positive impact on you. Simultaneously a bad score like less than 650 scores provides a negative impact on you. Sometimes low cibil score causes application rejection also. So it is better always check for the score before applying for it.
Now check the documents which type of document you required for your car loan. These are the regular documents which everyone has, they are:
Identity proof
Residential proof
Age proof
Payslip
Bank statement
PAN card
Driving license
Passport size photo
16A form
Car bill
Make sure that all papers are authentic, and any illegal documents will affect your future. If you are in any ongoing loan process, mentioned it to your lender.
Now you can take the help of the internet to search about the lenders/banks, and it is the main task you have to do before purchasing the car. Always try to compare the lenders with their interest rates, processing fee, downpayments, special offers regarding the car loan etc.
After comparing these things, choose your lender very wisely. Then go to the site of this lender and read all the terms and conditions that they have mentioned. Then follow the instruction to fill up the car loan application form, and fill it up very consciously. If you have any doubts regarding this or facing any challenges, direct contact with them by their contact number.
When you are applying or submitting the application form and documents( don’t submit the original documents, after verified the documents submit the photocopy of the papers, no one needs the original papers, if anyone asks for it, they are frauds) always ask for the receipt, it is your one of the proof document.
Comments