New Delhi: Compare Cheapest Car Loans: Many new cars with high-end features are constantly being launched in the Indian market. The time of festivals is also near, so many of you must be planning to buy a new car. Here we will be telling what you should keep in mind before making a purchase.
Selection of the vehicle is the initial step in your car buying journey. At the same time, it is also necessary to compare different vehicles and their prices before buying. Apart from this, it is also important to keep in mind the budget and requirement while selecting the car.
After the car is selected, the next step is to arrange the money. If you want to buy a car through loan then you can buy vehicle through self financing or can take car loan from bank. While taking a car loan, you need to arrange around 10-15% of the amount as down payment. The rest of the money can be financed from the bank.
Know important things
If you make a large down payment, it can reduce the amount that you have to borrow from the bank as a loan. With this, you will be able to repay your car loan quickly. Car loans often offer low monthly EMIs. However, an amount larger than your repayment capacity can damage your credit score and affect your financial health.
Financial institutions have the legal right to confiscate your vehicle in case you default on your loan. The criteria for availing a car loan may be different for all banks. However, some things are almost common in most of the banks-
- The age of the loan applicant should be 18-75 years.
- Monthly income should be at least 20 thousand rupees.
- Be associated with the current employer for at least 1 year.
- Should be salaried or self-employed in any government or private company.
- Must have been working in the current company for at least one year.
Cheap car loan available in these banks
The table below provides the interest rates and EMIs of different banks for a loan amount of Rs 10 lakh for a tenure of 5 years. This will help you to compare them.
You can check them and choose the right option as per your need and convenience.