Car Loans- The loan facilities which are provided in the form of money or banking draft which is transferred to the loan account of the borrower which can further be efficiently utilized and therefore it can further be used for purchasing the cars specifically. The cars purchased by using the loan amount can effectively be utilized for commercial business purposes which helps in generating revenue for the borrower where the borrower can utilize the revenue generated for paying off the installment amount monthly. Yes Bank car loan eligibility is more refined and minimum in the process. The second facet of the definition of a car loan is that the car loan process does not necessarily emphasize the deposit of collateral security where the banking institutions would require the customers to deposit collateral security in the form of gold jewelry and ornaments which would not be essential to generate the loan amount. Following are some of the important features associated with the functioning of car loans-
Extra Repayments Facility- The first facility that is available as a feature associated with the functioning of car loans is the extra repayments facility. In this facility, the borrowers would have the option of paying the extra amount of money while paying off the monthly installments along with the Car Loan Interest Rate amount that is generated from the loan amount to reduce the burden of the loan on the shoulders of the borrower. The flexibility of the loan process is assured by the fact that the borrower can pay an extra amount of money when the installment amounts are paid and therefore the overall loan amount will decrease as time passes by. This facility is very useful when the consumers are willing to pay off a bulk amount of the loan which would subsequently help the borrower in the future to clear off the remaining loan amount with relative ease. Thus when we come to the part which deals with analyzing and designing the car loans, we can start the explanation by defining the features associated with the functioning of the car loans.
Long Term of the Loan- The second feature that plays an important role in the functioning of the loan process is to understand how the tenure of the loan impacts the functioning of the car loan provided by the private or public commercial banking institution. When the tenure of the loan is from 1-15 years, the loan is called a secured loan and it is considered stable as the borrower has a considerable period under him to pay off the required loan amount. On the other hand, in the case of unsecured car loans, the loan amount is disbursed for 1-7 years. In such loan facilities, the borrower would have the added burden of paying off the loan punt quickly as the period offered is not as long as the one offered for secured loans.
Redrawing Facility- Another basic feature associated with the functioning of car loan facilities is to draw up and withdraw the existing amount of the loan whenever the borrower finds it necessary to withdraw the monetary amount from the banking institutions whenever they find it necessary to generate funds and utilize it effectively to develop and generate productivity through the efficient usage of financial variables.
Conclusion
Therefore it is extremely important to understand the functioning of car loan facilities that would help in bringing about growth and development in the liquidity variable of the country's economic scenario.
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