Apply for Car loan Online: In India, most cars are bought through car loans. Car Loans are the best option when you do not have enough money available. In this scenario, people apply for car loan online and that can be repaid through EMI (Equated Monthly Installments) at fixed duration. Nevertheless, before applying for car loans, we need to know and understand the whole process to initiate the method quicker and avail the loan without any nuisances.
Steps to getting car loans faster:
1) Shortlist your car:
The main step is to select your car that you want to buy. Based on the selection, your car loan will be sanctioned. For new cars, moneylenders in India usually give up to 85% of the car’s ex-showroom price as the loan amount. In some cases, you can also get up to 100% of the ex-showroom price as a loan. Typically this percentage is much lower for pre-owned cars. Once you shortlist your car, you can proceed to the car loan eligibility check.
2) Know your eligibility:
Your eligibility for getting a car loan highly depends on the following factors:
a) Selected car and expense of the car.
b) Age of the candidate.
c) Proof of earnings.
d) Total experience of work.
e) Those that are self-employed, then the total duration of the business will need to be provided.
3) Decide on the loan amount, tenure, and EMIs:
Once you have known that you are eligible, then decide the amount of money you need for a car. You can check this by the car loan calculator. In some cases where you have already provided a fixed down payment, you will need a lower amount. You will also have to decide on the tenure of the loan based on the monthly installments, in which you will pay comfortably. You should carefully consider the loan amount, loan term and interest rate of the car loan as these aspects will affect the overall cost of the car and the loan for you.
4) Negotiation for interest rate and other extra fees:
In most utmost cases, car loan interest rates are settled. However, you can adjust the same based on your credit score, buy a car from a trustworthy dealer, and provide all the necessary documents in full. You can wait for some time if you think interest rates will go down. The interest rate is the price that the lender spends on you to reap the benefits of financing your car. Apart from this, you also have to see if there are any other costs. Most lenders also charge processing fees.
The interest that you pay to the lender during the loan period may be considered as an additional cost to the car. So, you should keep this in mind and add this aspect to the overall cost of the car to come up with the actual cost, which you will have to bear over time. Further costs include early closure or foreclosure, as well as payment of a debt. If you are planning to pay the loan before the due period then you should check these costs. Also, note that no tax benefit can be availed on car loans in India.
5) Give relevant and correct documents:
You need to keep the important documents including ID, address proof, income proof, etc. available. Once you provide the required documents that the bank has asked for, your process is almost finished.
6) Book your car:
Once you receive the loan sanctioned, the bank will transfer the funds to your account. You can now revisit the dealer to finish the payment and book your car. Apply for car loan online with these easy steps to book your dream car.