We used to live in a time where affording a car was a luxury that not everyone could afford. Purchasing a 4 wheeler was a dream that almost everyone had but due to the high prices not everyone could afford this luxury. A car is an essential part of the society in these times, they are the most convenient and comfortable ways of commuting from one place to another. But now times have changed and now there are ways the common man can purchase the car of their dreams without hesitation. Financial institutions are willing to offer car loans to individuals who wish to buy a car but do not have the financial support to pursue their dream. The individual has to just qualify for some basic aspects to be qualified for a car loan.
The price of a 4 wheeler may be quite expensive and will leave the customer in a situation where they do not have enough financial support to handle their daily life expenses. Thus opting for a car loan will help the customer in buying the car they deserve at a lower interest rate. In a car loan, the individual will get a lump sum amount as loan to purchase the vehicle and the individual has to repay the loan at an interest rate through monthly instalments. The repayment of the loan should be done through Equated Monthly Instalments.
Features of a car loan:
- A car loan will help you purchase a better car than the one that was available through the individual’s budget.
- The car can be procured very quickly through the process of the car loan without spending too much time gathering all the funds.
- A car loan will help you purchase the new car by spreading the cost over a long tenure. This payment process helps the customer in buying the vehicle without any damages to their daily expenses.
- The actual amount that a customer can avail varies at different financial institutions. However, mostly 100% of the vehicles on-road price is provided by the financial institution. The repayment for the loan usually stretches from 5 – 10 years and the interest rates differ between financial institutions.
- Car loans in India generally have a fixed interest rate option when it comes to repayment of the loan through EMIs, Which means, the customer has to pay a fixed amount every month throughout the tenure of the loan.
There is a list of documents that are required for the approval of a car loan. Providing these documents at the time of applying for a loan will make the process hassle free for the customer.
The list of documents required for availing a car loan are:
- Age proof
- Identity proof
- Application form
- Passport size photo
- Address proof
- Income proof
- Bank statement