A car loan is a specific lending scheme by a bank or financier to help people buy a car, be it a necessity or the fulfilment of a dream, without the need to cough up the complete on-road price up front. We look at everything you should know before you take the decision on taking a loan and specifically look at how CarWale is the best platform to do so hassle-free.
Basic components of a car loan
1. Loan amount - Also known as the principal amount, this is the money a bank/financier is willing to pay.
2. Interest rate - The percentage of loan/principal amount charged by the bank/financier.
3. Down payment – Unless offered a zero down payment option by the bank/financier, you can be asked to pay anywhere between five to 15 per cent of the total on-road cost of a car upfront to the dealer.
4. Other charges - Processing fees - While most banks/financiers have a fixed percentage of the loan amount set as the processing fee for the loan, some may not.
5. Other charges - Prepayment penalties - The bank/financier may levy a penalty for prepayment to cover up for loss in interest payment.
Shop smart for your car loan
1. Set your budget - Your budget should be limited by your monthly savings, your monthly expenditure and a contingency fund for emergencies.
2. Know your credit score - Your credit score is calculated on your ability to pay back a loan and your current credit situation. The better the score, the lower the interest levied.
3. Pre-qualified loan - Online tools including the one on the CarWale can help you get an Insta Pre-Qualified Loan in the comfort of wherever you are. This saves you from the hassle of visiting multiple banks/financiers and choosing a loan offer best suited to your needs.
4. Visit dealership and buy the car - Visit your nearest dealership with the pre-qualified loan document and buy your car with no hassles!
Why CarWale Car Loan?
1. Custom-fit instant loans - Enter the required information and the CarWale Car Loan site will give you various loan options, depending on the loan amount, loan duration, your credit score and other factors. With the option to tweak your requirements, you can get the perfect loan offer.
2. Compare and select - With four major banks to choose from for now, the CarWale Car Loan facility offers a wide range of loan options.
3. Flexibility - Flexible repayment tenures, pocket-friendly EMIs and even an option of availing 100 per cent financing are the flexible advantages of choosing the CarWale Car Loan facility.
4. Car buying expertise backup - Have a budget but confused about which car to buy? CarWale has the best team of experts who can help you choose the right car matching your needs/dreams.
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