Car Loan Tips

Car loan Tips

Looking for Best Car Loans??

If it is what you are finding / searching for, then you are at the right place. Because at loanserve, getting a loan is a very simple.

We give you access to various leading banks within the country. To avail our services, all you need to do is just fill the on-line form (will take just a few second / minutes). After once you submit your details, we let the banks (with whom we’ve partnered), evaluate your details in order to provide you with an appropriate deal.

If you just go to a showroom & pick out a car and do the financing, you could get the car, but in all probability would also end-up paying some thousands of rupees more than you should have.

Today the Internet has revolutionized the way we buy / obtain cars. So it’s necessary to educate yourself before hand, about a way to to get the good deal when you obtain / buy a car.

Buying a car, now, has become easier than ordering a home delivered food. Banks today provide easy finance schemes where you can drive away with a car. But deciding / selecting on the right car finance is very difficult. You may be confused on which one is beneficial for you and might end-up with 1 that has varied “invisible” strings attached to it.

So here are a few things, we at loanserve think might help / assist you in choosing / selecting the right car financing option:

The 1st thing you need to know, before availing for car loan, is that the type of car you want and see if it suits your estimated budget. Narrow your choice of cars, to 2 or 3. Compare rates of all banks and get their best rates. Also ask for recommended dealers for the cars of your choice to see that dealer is giving you the best deal.

You apply for a loan & you buy a car. You go to a bank and fill out some forms and that they disburse your check. Sounds easy enough, doesn’t it?

However, your application could be denied or cancelled, otherwise you may get an offer at a high interest rate if you have bad money history. All banks go through your financial history when you apply for a loan. Different banks have different standards of judging a credit history. So it’s informed to clear up all old debts, if you have any, before you apply for Car Loan. This will help you get your loan approved at lower rate of interest.

You re-pay the loan in equated monthly installments (EMIs), comprising of principal amount and the Interest Rate. The (EMI) depends upon the loan amount, the interest rate and the tenure of the loan.

Also don’t just evaluate the deal based on monthly (EMIs). Calculate how much you will be paying over the tenure of the loan at (EMI) Calculator. This in turn is a function of Interest rates.

The interest rate depends on the Flat Rate and Reducing Balance method. In the Flat Rate of interest, the principal amount (on which interest calculations are made) remains same for the entire tenure of the loan. The total interest rate is divided over the number of installments to derive the (EMI).

Reducing Balance, means reducing the paid-up principal amount (on which interest calculations are made) from the outstanding loan amount. The interest rate you pay is calculated on outstanding principal balance.

Car loans typically don’t require a patron but if your income does not meet the credit criteria, then you will be required to have a guarantor for your loan. patron can be your spouse, if employed, or a 3rd party guarantee will do.

Processing fees is a one-time charge taken for processing and legal paperwork. At the beginning of the period, the bank requires you to pay 2 to 4 percent of the loan amount as process fees. For i.e, if you take Rs.5 lac at 15% for 5 yrs. (60 EMIS) and charges you 2 % as processing fees, you are in effect paying Rs.10 thousand.

If you chose to pay up your entire money before the tenure, a Pre-payment punishment is charged. So know about such forfeits before hand to avoid future misunderstanding b/w you and the bank.

Also keep in mind that most banks provide / offer you the option of pre-payment, but they do not give the flexibility of part-payment.

You “have-to” insure your car. It is against the law to drive an uninsured car. You must get an insurance policy for a yrs. duration, after which you have to renew / reintroduce it. The amount of insurance is equal to the market value of the vehicle and not the book value of the vehicle.

The premium is added to the (EMI) paid for the loan tenure and you are insured for the amount you have taken, in-case something unexpected happens Assured amount will be given to the bank without burdening the members of the family.

So keep these few things in mind while financing your next car loan. You have reached the best spot to get the best car loan, from the best banks. Go, fill the application form right now.

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