CRYPTO – WORLD FOR RISKTAKERS

FACTS ABOUT CAR LOANS......

If you are fed up with the pollution and heart breaking rush in public transport means, so give your life a comfortable turn and buy a vehicle (prefer a car over two wheeler)& don’t care whether you have enough money or not because there are lots of Banks are there to finance you.

If you are the first time borrower and you have not availed any loan earlier then there are some things you should know and keep in mind while applying for a vehicle loan:

• Be ready with some documents like, pan card, address profs, bank statements, income proofs (salary slips/ITR), vehicle quotation/estimate from dealer etc.
• You also have to fill some application and information forms in which you have to furnish your financial as well personal information, which give a glance of your standard of life and your capacity to repay the loan.
• Banks finance 85% of the vehicle price but now due to increased competition some banks are financing upto 100% of the vehicle.
• Don’t go for second hand car or two wheelers, because there is low finance available and high rate of interest is charged.
• Banks calculate the loan eligibility on the basis of the income of the applicants. Banks take the total gross income of the applicant and minus the tax payments, insurance premium payments and other statutory deductions which applicants have to pay every year. A certain percentage of remaining income is also deducted for the household expenditures & loan is assessed on the remaining income part.
• Usually bank charges processing fee from the borrowers, usually 0.50% of the loan amount. It is recommended to buy car during the festive season (around Diwali, new year, etc.) because banks gives concession in processing fee as well as in rate of interest, also you can get other festive offers from dealers at that time.
• In the case of vehicle loans, for security, banks registers its charge with transport authority on the financed vehicle in the form of HP(Hypothecation). So, because of the that you cannot sell the vehicle to anyone without removing the bank’s charge. And personal guaranty of the spouse is taken for the security of the loan amount.
• Maximum the repayment tenure of loan, maximum is the loan eligibility. Banks offers repayment tenure upto a period of 7 years nowadays.
• Car loan is sanctioned within 2-3 days.

We recommend you to approach a bank which offers interest rate on reducing balance method amount (when you pay surplus amount over and above the EMI, you get benefitted in interest payment), no hidden charges (some private banks charge hidden fees/charges which are not disclosed at the time of applying loan, offers no prepayment penalty and offers quick customer service.

Happy loaning and safe driving.