Buying a new car is an
up-hill task few years back. But the time has changed now. A borrower has too
many choices among cars and dealers as competition is very much high. Buying a
car means you should be pleased and comfortable knowing that you have chosen a
right car. It should not be a burden upon your pocket as everything is so much
expensive so as fuel prices. Going to have a car doesn’t mean getting a loan
and driving away. Consumer should know about the products available in the
market about car loan.
In the market, several banks and financing companies like HDFC
Car Loan, Axis Bank Car Loan, etc are hunting for the customers, but it
is up to customer that where they want to go for a car loan. Borrower either
can visit financing firms or can use the best way of online surfing to collect
the knowledge about Car Finance products. Borrower should realize that the
decision of picking Car Loan lender is the biggest financial decision because
purchasing a car will require a percentage of your income over the next few
years.
The main thing on which a selection of lender depends is the Car
Loan Interest Rate. It varies among the various factors like borrower
wants a brand new Car Loan or Used Car Loan, income of borrower, etc. One
should choose fixed interest rate which will be the same throughout the tenure,
and if the borrower chooses floating rate of interest, then he or she have to
pay an interest rate decided by the respected RBI (Reserve Bank of India).
There are some rules and regulations of every company by which they analyze the
client, for sanctioning loan or not like if a consumer has poor CIBIL score and
then he or she might get interrupted while availing Car Loan.
Car Loans are of two types Secured Loans and
Unsecured Loans. In Secured Loans, one should pledge his or her a valuable
asset to the financing institution. In Unsecured Loans, customer don’t have to
pledge anything to lender, but will pay a higher interest rate than a secured
loan. After finalizing the lending firm, borrower has to do some paper work to
avail loan. He or She has to satisfy the authorities with the required papers
like Income Proof, bank statements, residence proof, etc.
