car loan

How To Get Car Loan In India- 2019

Buying a new car is exciting but and buying a new car is even more exciting. Owning a car is a dream for many as it is one of the major milestones in ones’ personal as well as professional life. But not many have the capability to pay the entire amount of the new car all at once. To bridge this gap, banks and NBFCs provide car loans so that you can fulfil your dream of owning a dream car.

But if you are applying for the car loan for the first time then the entire process might seem like a herculean task. But worry not as here are the steps to apply for a car loan.

Step 1: Check Your Credit Score

Your credit score will play a vital role in deciding whether you can get a car loan or not. While it may sound obvious for those who have applied for a loan before, but first-timers might not realize the importance of the credit score.

A high credit score can get you a low- car loan rate which would save you a lot of money.

On the other hand, a low credit score will fetch you a car loan with a high rate of interest.  So, it is a good idea to check your credit score, in fact, you can check your credit score online at free of cost.

Step 2: Check Car Loan Eligibility Condition

Different lenders have different eligibility conditions for a car loan. For instance, some banks have a minimum annual salary of 2.5 lacs while other lenders might have a minimum salary of 3lacs per annum. You can check car loan eligibility conditions for any lender on their online portals. Also, you can use a car loan eligibility calculator online at free of cost.

Step 3:  Pick Your Payment

Next thing you should do is to calculate how much you can afford to spend on EMI’s every month. Once you have figured out the amount, you can use a car loan calculator to find out the tenure of the loan period. Car loans typically come in 3, 4, 5 and 6-year terms. The longer the term of the loan is the lower the EMI would be. But a longer loan tenure means you will owe the lender more than the actual cost of the vehicle. Also, do not forget to leave the insurance and maintenance cost behind.

Step 4: Look for Car Loan Approval Online

Nowadays, there are many lenders who provide car loan online. So, you can look up for instant approval online as they are easy to check and can be done with just a couple of clicks. By looking for car loans online you can know the market rates for a car loan which would help you with negotiating on car loan interest rates. Usually the car loan rates in India start at 10% per annum on an average.

 Also, you can get car loans at attractive offers as there are many online lenders who offer an attractive rate of interest as compared to offline dealers. By pre-approval of your loans, you will have a lot of options to choose from.  But makes sure you do all your car loan shopping within the 14-day period as some credit models will penalize you for asking too many in inquiries

Step 5: Finalize Your Paperwork

Once you are done with selecting your car model and price negotiation, it is time to coordinate with the lender and finalize the deal. You should ensure that before you sign on the documents, you read all the terms and conditions very carefully.

Author Bio:

Sneha Sharma is a writer currently associated with Droom Technology. She writes about various topics such as auto news,trends in automobile industry, auto finance and so on. She has a prominent existence and well participation on different social media platforms.

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