How to avail the Best Car Loan?

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.