What Should You Know Before Availing Car Loan

Most of us aspire to own a personal vehicle which can be used for short and long travels. However, buying a car is not an easy task, you require sufficient amount of funds before you book an automobile. For those individuals who aspire to purchase a car, but do not have sufficient amount of cash at hand, a car loan is recommended.

Acar loan is a perfect way to finance your automobile. You only require to approach a particular automobile vendor, finalize the deal, get hold of the financer, settle upon the down payment, and finally agree upon the terms and conditions of loan, and the EMIs of repayment.

Before you plan to avail such a loan, take care that you know these following things.

1> Age Criteria

Any person who applies for a car loan should be more than 25 years of age at the time of applying for the loan. Moreover, he/she should be less than 58 years of age at the time of loan maturity.

2> Income Criteria

The minimum income of a person should be more than 2.5 lacs per annum for salaried individuals. For non-salaried, self-employed individuals, the income limit is set at 2 lacs per annum. Moreover, the salaried applicant should be working with the employer for more than a year, and should be in the profession for more than 2 years.

3> Check the Help

Always check the identity and credentials of the people who assist you with the loan. At times, such help may be extended to avail commission from the bank or other financing institution. Ensure that you do not fall for such scheme.

4> Bargain for the Interest Rate

Interest rate offered on any kind of loan can be bargained. You should either take help of mediator/ loan agent or approach various financial institutions to avail a better deal.

5> Plan the Repayment

Plan your EMI repayment wisely. If you do not plan it wisely, then you will end up paying extra interest through extended EMIs.

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