Car Loans India Know Its Basics: Planning to buy a car? Things you should know before buying a car loan from any bank in India. Rate of interest and other details.
Today, car is no more a status symbol, but is a daily commodity. It has become an integral part of the high paced modern living. Ranging from a high class rich people to middle car person, these days, everyone wants to own a car. However, owing to the steep car prices, it is not possible for everyone to buy a car with one-time payment. Hence, getting a car loan becomes a feasible option.
Applying for a car loan is very easy. There are a lot of financial firms and banks like HDFC Bank, ICICI Bank, SBI Bank and more that offer car loan at convenient interest rates. You can also find many web portals that provide tailor-made services like assessing your eligibility, calculating EMIs, documents required, assistance in application process and more. You can simply login to the sites, and can get all the information related to car loans.
Car loans are available in both online and offline mode. These days, people are opting for online mode, as it an easy and convenient method. If you are looking for a faster loan approval, you can opt for online mode. Furthermore, you get a loan in the comfort of your home or office. Besides, online mode gives you an option of comparing prices and interest rates, so that you can get the best deal.
When you are applying for a car loan, it is very important to have a complete understanding of the loan, and also the type which will suit you the best. For start with, there are two types of loans, secured car loan, unsecured car loan.
Secured Car Loan: this is loan in which the borrowers are supposed to keep their newly purchased car or any valuable asset as the security to the lender. In this case, if you fail to pay the regular EMIs, the lender can auction the collateral asset to recover the loan amount.
Unsecured Car Loan: In this loan, the borrower needs not to deposit anything as security to the lender. The basic difference between secured and unsecured loans is the rate of interest. If you are choosing unsecured car loan, you need to pay more interest rate. However, it is always advised that one should choose secured loans, as these loans are subjected to lesser interest rates and lend you big amount of money.
You are required to deposit some documentation to get the loans; either you do it online or online. If we talk about the documents, the required ones are your ID proof, residential proof, income proof and more. If one fails to satisfy the required income criteria, one involves his/her family member who is eligible for the loan.
With all the necessary information, you can get a hassle-free loan, and enjoy your new car.