Car loans have made it easier for people to zoom around in their favorite cars. People no longer have to wait for years to save money to buy their favorite car. If you are eligible for a car loan, you can buy your dream car within a week. You can buy any car you want, as car loans are available for both new cars and pre-owned cars. If you already own a car, it can also work as an asset, as you can get a loan against car. This can be useful in cases where you may need funds on an urgent basis. Let’s take a look at how car loans can help you get more from life.
New Car Loan: This type of car loan is for buying a new car. If you are buying your first car, it could be a true delight for you and your family members. Think about spending time in the cool comforts of your car, going for shopping, going on a long drive with your partner, or having fun with friends over the weekends. If you are eligible, you can get up to 100% on road price funding for your new car. This would be quite advantageous, as you will not have to pay even a single penny from your savings to buy your new car. You will also benefit if you are a salaried person, as interest rates are the most affordable for salaried individuals. Another good thing about a new car loan is that you are eligible for loan tenure of up to 8 years. This will automatically reduce the monthly EMIs, which in turn will ensure that you have more cash with you every month.
Pre-owned Car Loan: You can apply for pre-owned car loan if you want to buy a second-hand car. Many people prefer pre-owned cars, as these cost a lot less than brand new cars. If you buy a pre-owned car from a trusted source, it can be a very profitable deal. If you choose the right bank or loan provider, you can get up to 90% funding of the valuation amount of the pre-owned car. The tenure for a pre-owned car loan will be up to 5 years, depending on your income profile and credit score.
Loan against car: Sometimes, life can take unexpected turns that may require you to procure funds on an urgent basis. If you own a car, you can apply for a loan against car to get the funds you need. A loan against car can be very useful, as it will help protect your savings such as your fixed deposits, family jewelry, equity investments, etc. The tenure for loan against car can be up to 15 years. This means that your EMIs will be smaller and you will have plenty of time to repay the loan.
When in the process of applying for a car loan, choose a bank or lender that offers 100% on road price funding, longest loan tenure, affordable interest rates, and minimal processing fees. These factors are vital to deriving maximum gains from your car loan. Also, make sure to read the fine print to check for hidden costs or charges, or unfavorable terms and conditions.