Sep 30, 2016 08:15 PM
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In the past, owing a Car was the status symbol for everyone in India. Now a day Car is the basic requirement for everybody. A Family with four persons like a couple with two children should have the Car. Four members cannot be travelled on Bike. So for safety and security owing a car is essential in today’s life. Now a days car loans are easy to take. Before taking a car loan the following points should be kept in mind.
1) Don’t tell to the Dealer that you are taking the car on loan. First finalizing the Car price and after that tell him that you need a car loan.
2) Take the loan only 60% on the total price of the Car. The remaining 40% you pay as down payment, because taking too much loan is not suggestible.
3) Prefer the bank which is giving lowest rate of interest.
4) Enquire about what is the processing fees, any pre closure charges, mortgage charges, go with the lowest one.
5) Go for only the diminishing rate of interest. If it is flat, don’t prefer that.
6) As my opinion always prefer Public sector banks, because there will not be any hidden charges.
7) Take the loan term as long period. Because the installments will be easy to pay and when you get any lamp sum money like bonus, repay/close the loan.
8) If you have the sufficient money also, take the Auto loan only. Because at the time of missing the car also, the finance/bank will take care about the finding of the missed one.
