Gone are the days when a car was a thing for the rich and wealthy. Evolving financial services has made the most premium of the luxuries affordable to common man. Welcome to the world where even a middle-class individual can now own a BMW, Audi, or any other high-end luxury car. It obviously would depend on your income, but loans today has reached an unimaginable level of customization. Bigger loan amounts are spread across more term periods, keeping the EMI intact.
Today, many financial institutions and banks are offering loan on new and used cars, customizable according to clients will. You don’t need to go to even visit an institution, instead you can just apply for a car loan online. Here are few points you need to consider before applying for a car loan online:
1. Covers a wide range: Car Loan should cover a wide range of cars, starting from affordable to luxury.
2. Attractive Interest Rates: Interest Rates should be attractive or at least below your credit card rates
3. Customizability of Schemes: Institution should be ready to tailor schemes to match your requirements.
4. Loan processing time: Institution should be quick in processing the loan. That’s why we recommend a private organization. Normally, when you apply for the car loan online, a representative should attend you in 2-4 business working days.
5. Loan Tenure: Tenure of loan should be from 6 months to 7 years. Anything less than 6 months should make you consider other institution.
6. Location: Loan should be available at the location of your convenience. Though banks have higher reach in rural areas, but they then have a longer loan processing time.
7. Eligibility: Mostly financial institution prefers a minimum income of Rs 15000 with 1 year of job and residence stability. Choose an institution that can offer such level of eligibility or look for better options.
8. Documentation: Most institution has separate requirements for documentation depending on whether a person is a working professional or self-employed. However, most prefer address proof, identity proof and income proof for individuals.
9. Charges & Fees: Many institutions dupe by hiding essential pre and post loan sanction charges. E.g. Charges levied for cancellation of the contract, PDC swap, statement of account, LPG/CNG NOC, pre-payment fees etc. Check the website of the vendor before applying for a car loan online.
10. Guarantor: Generally, most companies offer car loan without the guarantor because the car itself is the mortgaged property. Choose an institution which offers guarantor-free loans.
Apart from checking the vendor’s website before applying for a car loan online, visit the vendor’s social media pages, reviews and various other forums which can confirm your decision.