Many people in India require financing for their new car. However, they find the process too difficult to understand. They do not know where to head. This article helps such people. It helps those in need of a new car loan find the best deal.
These days, there are plenty of financing options. That may also be the reason why you find the car loan process too complicated. Search the right places and it is going to be easy. You need to be aware of the market conditions. Do not borrow a loan from the car dealer unless he is offering it with zero car finance. Still, beware! The dealer may not give you the discount that you may have got otherwise. Also, the zero per cent interest car loans usually come with the 3-year repayment condition. You need to be in a condition to repay the amount within the specified time. Look for the lender offering you the lowest interest rate car loan.
There is another drawback in opting for a loan from the car dealership. Dealers usually charge mighty rates of interest. The car itself, without the loan, is unaffordable. Further, dealers make the loan unaffordable. You may look for other lenders or banks that offer loans at lower rates. Banks usually offer car finance at prime rates which helps in reducing your interest amount.
The best place to search for the best deals on new car loans would be the Internet. Using the loan and EMI calculator tools, you can calculate the exact amount you will be paying as interest. Look for as many such web sites as possible. Do not stick to just one lender. Compare as many lenders as possible and go for the one offering the lowest interest rate.
Certain lenders offer low interest rates. However, they have very high processing and service fees. When calculated properly, these fees nullify the effect of the low interest rate. The amount you would save on the low interest rate loan goes for paying off the processing charges. Your bank, on the other hand, may just waive off these fees. Since you’ve already been a customer there, they may ignore the extra fees. For them, finding a loyal customer who will diligently pay off the loan is more important than the processing fees. You need to check with your bank and convince them about this though.
Always choose a reputed bank or car loan lender. This will avoid messy situations in future. Read the loan papers carefully before signing them and keep an eye for hidden terms and conditions. Read through the fine print carefully and understand each and every word before offering your signature on the car loan agreement.
There are lenders that allow you to make prepayments in case you wish to pay off the entire loan amount. However, they may charge high prepayment penalties. Clarify this in the beginning lest you may find it difficult to pre-close your car loan.
Going online is the best way to apply for a car loan. It will save you the hassle of running from a lender to the other. You can apply online at your ease; no working-hour restrictions. The approval too comes in quick. Initially, if you wish to discontinue the process when you realize the rates are too high, you can do it right away. Mostly, the web sites offer free no-obligation quotes. You just need to proceed with the lender offering you your new car loan with the lowest interest rate.