Buying a car has become very easy nowadays and too many financing options are also available. Easyloansindia helps you in deciding which finance option suits you the best. A car loan is a loan in which funds are given to purchase a car and the car so purchased is kept as security. Subject car is hypothecated in favor of the financial institution. It is given to new as well as used cars. Buyer can repay the loan in the form of equated monthly instalments for a maximum tenure of five to seven years.
The car loan market is very competitive. Someone can get too many offers but you need to understand the hidden costs involved in it. Offers keep changing with the car you opt for, festive seasons, the city in which you reside, etc. Buyer should be cautious and should know that it is not compulsory for him to purchase car insurance from the car dealer or the lender. He should negotiate smartly on processing fee (varies from car to car as well as a financial institution).
1. Can I get an auto loan with submitting income documents?
Ans- There are certain no income proof schemes offered by some banks. You can opt for them.
2. How long does it take to process the loan ?
Ans- It may take around 2-7 days.
3. How much finance can I get on a new car?
Ans- It depends on the cost of the vehicle and type of vehicle.In case of new car it may go up to 90% of price of the car.
4. What about insurance and registration?
Ans- Cost of insurance and registration is not covered in the loan. The only ex showroom price is considered.
5. Can I get car accessories financed?
Ans- Most of the banks don't do so. However, some banks finance AC, music system and other expensive accessories.
6. Can I sell the car before complete repayment of the loan?
Ans- No you can not do so, because NOC is required from the bank before selling the car.
7. Whether I should opt for a fixed rate of interest or floating rate of interest?
Ans- When interest rates are falling, you should opt for a floating rate of interest. When interest rates are rising, you should opt for a fixed rate of interest.
8. Can I club income of my wife to increase my eligibility?
Ans- Yes, you can club income of your wife by making her a co -applicant.
9. How is the interest calculated?
Ans- The interest is usually calculated on a flat rate or on a reducing balance which can be either daily, monthly, quarterly or annually.
10. What can be the repayment period?
Ans- It may vary from 1-7 years .