Four Wheeler Auto Financing

Four Wheeler Auto Financing

Car loans are the simple means to a glorious life milestone- owning your dream car. Almost all of us want to own that shiny set of wheels and drive it triumphantly, into the sunset. However, owning a car (vehicle in general) in India is a costly proposition, one that usually demands the impetus of a sizable financial assistance from banks/ financial institutions that have dedicated loan products in this regard. Almost all private/public sector lenders in India offer car loan options with terms and conditions that are highly customer friendly, affordable and scalable. By qualifying against a very simple list of identity, income and credit history qualifications, you can be the proud owner of your own brand new car.

Why Choose a Car Loan?

Choosing a car loan in India has two distinct reasons and advantages. Firstly, cars are expensive. This is a costly investment that is usually not completely affordable in the case of a typical middle class Indian. While his/her savings may account for a sizable portion of the purchase amount of the vehicle, a significant portion of the aforementioned purchase must be covered by the amount as provided by the car loan. Secondly, massive purchases (such as buying a car) with liquid cash could get you on the IT department’s radar, plus, you lose the chance to build up crucial credit history by subscribing to a car loan and religiously adhering to the repayment cycle. The credit history thus built, will help you procure more loans in the future. Hence, car loan in India are the surest and safest way to purchase your ideal vehicle.

Car Loan EMI

We offer new and used car loans at attractive interest rates for most makes and models of cars in the market. Car loans are repaid in Equated Monthly Installments (EMIs). Car loan EMI calculation can help you find out how much your car loan will cost you monthly. You can use the free online EMI calculator available on the bank website or a reliable third-party website to calculate the monthly cost of your car loan. The online tool can be used any number of times free of cost. It is advisable to use an online Car Loan EMI Calculator rather than calculating the EMI payments manually because of the probability of a human error.

It is not only simple and easy to use but also gives instant and accurate results. The steps involved are as follows:

• Enter the car loan amount, loan tenure, interest rate, and processing fee into the tool.
• Click on the ‘Calculate’ button and you will get instant results in the form of an amortisation table which represents your car loan repayment schedule.
• The table will consist of monthly EMI payments, overall interest payment, the outstanding balance after each EMI payment, etc. With the help of a bar graph and pictogram, you can easily interpret your car loan repayment schedule.
• Depending on the results, you can choose your car loan tenure and decide whether you want to opt for prepayment or pre-closure of your car loan. A short loan tenure means a higher EMI payment but you can pay off your car loan early. A long loan tenure means a smaller EMI payment but your overall interest payment will be higher. Therefore, use the car loan EMI calculator to choose the right loan tenure.

Car Loans - Features and Benefits

When it comes to car loans in India, in general, the following features and benefits are offered. Note that, the following is a generalized look at the advantages offered by car loans. Individually, car loan lenders may have highly customized and specialized offerings for their customer base.

• A car loan helps you purchase a better car than the one available in your budget.
• It allows you to procure a vehicle quickly- without spending too much time arranging for the money through the time-tested concept of ‘saving for it’.
• It helps you manage the cost of purchase of the new car by spreading it across a longer duration of time. Thereby, this keeps you in control of your spending and makes the car much easier to pay for.
• Most car loan offerings in India are secured loans. This implies that the car serves as the security/collateral for the loan. If you default on the repayments, you stand to lose the car, plus your credit score is damaged. However, you do have a measure of control over the proceedings - just be careful of not defaulting on your car loan EMIs.
• Procuring a car loan is usually simple when compared to other loan products. Individuals with slightly unsavory credit scores can also hope to procure one. However, this option differs from bank to bank.
• Car loans in India often utilize the fixed interest rate option when it comes to repayment via EMIs. This means, you are always assured of a fixed amount that needs to be repaid on a monthly basis.
• The actual maximum loan amount depends on the vehicle to be purchased and varies from bank to bank. However, this is mostly 100% of the vehicle’s on-road price. The repayment tenure usually stretches from 5-10 years and offers different interest scales for different tenure slabs.
• Most importantly, a car loan helps you buy your dream car. Aside from being a purely transport option, the car serves as a confidence booster and your means to assert the hard-earned financial freedom.