Hidden Ways To Handle a Car Loan

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Hidden Ways To Handle a Car Loan: - 

  1. SELECTING A SHORTER TERM- The first and foremost way that most of the people do not know is selecting a shorter term for the repayment of the loan. Though if you select a longer tenure for repayment of loan, no doubt, you will get a lower interest rate on your EMIs, but you will end up just paying much more than the actual amount. The car loan interest rate and the tenure of loan repayment are inversely proportional, but selecting a shorter tenure will still be good. Most of the people fall in the trap of paying lower interest rates for a longer period of time, but you should go for a shorter tenure. HDFC Car Loan offers lower interest rates.

  2. SHOPPING AROUND- The second most important thing that one needs to keep in mind while availing a car loan or any other loan is good research. A good research will help you a long way and you should also compare the policies and the other features of the loans offered by different banks, and then select the one which you feel is suitable for you. A person should check all the options available and then check, what are the benefits and how you can select the best loan.

  3. NOT ONLY FOCUSING ON EMIs- Some of the loans offer longer tenures for the repayment of loans with lower amounts of EMIs. Just because the value of the EMIs sounds affordable and also reasonable, that does not mean it is the best deal for you. You have to make sure that you are checking each and every aspect of the loan that you are availing. 

  4. SELECTING THE 'DOWN PAYMENT' OPTION- Some of the banks offer car loans which have the ' no down payment option' but it's just like  a 'less now, more later' deal. If you select an option with 'zero down payment', you will be paying more in the future. There are also hidden charges and feeds that one generally forgets to factor into this equation.

  5. CHOOSE BETWEEN NEW AND PRE-OWNED CAR: - Firstly, you need to fix your budget and then, the second important thing is to decide that you want to buy a new car or a second hand car. All the pros and cons of both the cases can be checked online and then, you can decide whether you want to buy a car or a pre-owned car. After all this, you can assess if the type you have chosen fits your budget, by calculating everything.HDFC Car Loan offers lower interest rates.

  6. SECURE YOUR FINANCES BEFOREHAND: - This is one of the most important ways to look for all the financing options that are available. Most of the dealerships also provide financing options to their customers to help them purchase the car that they want. A person can also check all the offers given by the different banks and select the one which you want.

DOCUMENTS REQUIRED FOR AVAILING OF A CAR LOAN: - 

If you want to be eligible for a car loan, you should carry all the mandatory documents which are mentioned below: - 

  • Identity Proof- The applicant needs to have valid identity proof. It can be a Driving License, Aadhaar Card, PAN Card, passport or any other document that the government issues.

  • Age Proof- The age of the applicant has to be a minimum of 18 years. He needs to have a document that states his age clearly. It can be a Birth Certificate, Driving License, Ration Card, Passport, School leaving, College Leaving Certificate or any other document that the government issues.

  • Address Proof-  It can be an Aadhaar Card, PAN Card, etc. 

Income Proof- There are mainly two types of employment - Salaried and Self-Employment. The salaried individuals have to submit the salary slips of the last six months, bank statements of the last three months, Form-16, etc.

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