Things to understand before you choose a car loan

The bank and other NBFC’s have made so much advancement. You can fully rely on it. Taking a loan has become very much easier. But it is not always considered an intelligent thing as to avail, what is available. This might decrease the chance when you are actually in the need. So you must understand and consider a few things before applying for a car loan:-

1) Flat Interest Rate or Reducing Balance Interest Rate: 

Not always search for the lowest car loan interest rate because the word “flat” is very hideous and very dangerous to those who make such mistakes.

2) Access the all-in cost:

There are a lot of hidden charges in some banks which a person should know before taking the car loan and then keep it in mind after the fact that if the person can fulfill the loan amount including these charges. Some of them are -

• a. Processing Fee
• b. Prepayment Fee
• c. Late Payment Fee

3) Consider your needs not you Eligibility while Borrowing:

Now a smart loanee won’t fall in the sweet sugar-coated talks of the lender as he would know that more Principle amount means more rate of interest amount and more EMI.

4) Shop for Better Rates:

Looking for your suitable rate of interest is like finding a good vegetable in the Supermarket. You need to roam here and there to choose your desired loan. Don’t settle for the first option always as you might find a better deal somewhere else that might actually suit you and is economically the best option for you. IndusInd Bank Car Loan has very good interest rates.

5) Make Sure You can Service Your EMI:

6) Check Your Cibil Score Before Applying:

Now the Cibil Score always plays an important role in applying for a car loan. credit score is inversely proportional to the Rate of interest. The more your credit score, the lesser your rate of interest. So if you know your
the rights you are given.

7) Avoid Add-On Offers:

Not always having something extra is good. So a person should avoid taking on any add ons while applying for the car loan as it is unknown that what might comes with it in the future.

8) Talk to Your Family or Friends:

A friendly second option provides you with no harm and taking a car loan is always a big decision. Talk to the members of your family or any of your friends or well-wisher who are educated in the banking industry and is aware of the dos and don’ts of car loan so that they could show you the perfect obstruction less road to lead on.