Car Loan During The Pandemic

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No doubt, the coronavirus pandemic has caused immense problems and has resulted in a tremendous financial strain in the country. Due to the pandemic, many people have lost their jobs and are still in debt of loans. Also, the whole process of getting a car loan is present online on the internet, and a person can easily apply for a car loan while sitting in his room by filling out a form and completing the formalities. Once the verification is done, a person can avail of the car loan and get the car that he wishes for.

Banks are making it much easier for the people as this pandemic has affected each and every section of society. Availing of a loan in such times is made convenient for all through the online loan application. 

WHAT TO DO IF YOU ARE NOT ABLE TO PAY FOR YOUR CAR LOAN DURING THE COVID-19 PANDEMIC: - 

A variety of options available for you if you are facing any problem in paying for your car loan. 

  • Talking to the moneylender: - The Consumer Financial Protection Bureau (CFPB) recommends that if you are facing any problem in paying for your car loan, you should talk to your auto lender as soon as possible. You have to prove that you are getting affected by the pandemic, whether in unemployment or paying the medical bills.

  • Defer a car payment: - It means that you push costs and complete them after the last date. This will not affect the credit score, but it gets noted in the credit history. It is also known as a car payment extension.

  • Change the due date of the car payment: - You can change the date on which you were making the payment of your car so that you will get more time in collecting the money. 

  • Request a penalty fee waiver: - In this case, you can ask your money lender to waive a late fee and other penalties for late payment of the loan.

  • Make a payment plan: -  A payment plan is a plan made when you have missed your scheduled payments. Therefore, a new payment calendar will help to catch up with the old payments and manage everything.

A lender’s Car Loan characteristics: - 

The SBI Car Loan offers one of the best car loans and helps to compare and research to find the perfect car for him at the best interest rates. 

ELIGIBILITY: - 

  • Income: - Rs. 2.5 lakhs per year.

  • Age: - 23 to 60 years.

  • Stability: - minimum three years of employment stability and at least one year in the current employment.

  • Residence stability: - 2 years in the home city and one year in the current residence.

DOCUMENTS: - for the income proof

  • Latest - Form 16\ Income tax returns

  • Last three months’ salary slips

  • Bank statement - 3 months

Pandemic impact on car loan refinancing: - 

Before refinancing a car loan during the pandemic, the following five factors have to be kept in mind: - 

  • Car loan interest rate: - if the car loan interest rate is higher than you would think on your current car loan, you can compare the different interest rates and choose the one scheme that you believe is more beneficial for you.

  • The state of credit scores: - the ability of a person to secure a lower interest rate depends on a person’s credit score and credit history.

  • The term of your loan: - refinancing a new loan could save your money if the term on your original loan is in the range of five to eight years. 

  • The value of your car: - it is always good to consider the worth of your car when you are evaluating whether refinancing is right for you or not.

Getting the best car loan interest rate: - after considering the above points, you finally decide to refinance; you can follow the steps by which you can increase your chances of getting the best car rate. You can research online and compare different car loans and their interest rates.

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