Car Loan – Come Alive Dream Car
Car loan or auto loan in India has greatly been popularized because of getting immediate financial help out of it. From the last few years, purchasing power of Indians has increased considerably. Hence people start weaving a dream of owning a new swanky car in order to kill transportation hassle. Car loan has played a pivotal role to enable such people buy dream cars without experiencing financial hassle at all. However it is quite necessary of you to take some vital things into consideration before you make a decision to avail the loan.
First of all, you should understand that the auto finance in India is given three times more than the actual annual salary of the borrower. For instance if your annual salary amounts to Rs 150000, you will get the loan amount of up to Rs 450000. remember this loan amount is for those borrowers who are salaried individuals, for self-employed professionals, the loan amount is 6 times more than their actual annual income in order to buy a new car. More so, virtually, 100% financial assistance is available, if the car is to be bought on the basis of ex-showroom price. Almost 90% of the loan is financed for buying a used car. In this regard, if you don't have sufficient income, you can also club income of your spouse to improve your repayment capacity.
The new car for which you need finance will be held as collateral by the concerned bank. Though you will be using the car personally, but the right of ownership will be transferred to you when you finally disburse the loan of the bank. If you think about car loan interest rate, it is determined on the basis of your past credit history as well as your current income and on the basis of your past repayment of the credit card bills etc. ostensibly, if the credit history is gloomy, there is no future for receiving auto finance at low interest rate. The borrowed loan should be repaid within 5-7 years of repayment duration or else you will be charged for non-repayment of the loan. Make sure you repay the loan timely to fend off any penalty for non-repayment.
Some banks also charge interest rate on prepayment of the car loan. That means, if you wish to make prepayment of the loan borrowed, there is certain interest rate that will be applied on the prepayment. Hence make sure whether or not the bank charges on prepayment. With such consideration, you will be able to choose your loan well.
First of all, you should understand that the auto finance in India is given three times more than the actual annual salary of the borrower. For instance if your annual salary amounts to Rs 150000, you will get the loan amount of up to Rs 450000. remember this loan amount is for those borrowers who are salaried individuals, for self-employed professionals, the loan amount is 6 times more than their actual annual income in order to buy a new car. More so, virtually, 100% financial assistance is available, if the car is to be bought on the basis of ex-showroom price. Almost 90% of the loan is financed for buying a used car. In this regard, if you don't have sufficient income, you can also club income of your spouse to improve your repayment capacity.
The new car for which you need finance will be held as collateral by the concerned bank. Though you will be using the car personally, but the right of ownership will be transferred to you when you finally disburse the loan of the bank. If you think about car loan interest rate, it is determined on the basis of your past credit history as well as your current income and on the basis of your past repayment of the credit card bills etc. ostensibly, if the credit history is gloomy, there is no future for receiving auto finance at low interest rate. The borrowed loan should be repaid within 5-7 years of repayment duration or else you will be charged for non-repayment of the loan. Make sure you repay the loan timely to fend off any penalty for non-repayment.
Some banks also charge interest rate on prepayment of the car loan. That means, if you wish to make prepayment of the loan borrowed, there is certain interest rate that will be applied on the prepayment. Hence make sure whether or not the bank charges on prepayment. With such consideration, you will be able to choose your loan well.
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