Car Loans

Few years back, owning a car was a lifestyle choice, but as the economy progressed, the earning capacity of the youngsters grew along with it. Economy growth brought with it multiple auto companies which helped in easing the supply as well as brought down the prices to common man’s reach. Nowadays, in the fast-paced world, owning a car is more of a necessity. The pathetic state of public transport or the sheer absence of it also makes the ownership of the car more of a need than status symbol.

Even though the cost of cars have come down, shelling out a big amount upfront is still daunting. Though Indian Banking system offers great loan products specifically tailored for the masses. The auto loans offered by various Bank/ Financial Institutions are very affordable and simple to understand. The auto loan markets is highly competitive which has helped the Indian consumer to make the car ownership more affordable. The process of availing a car loan remains very simple and is approved against the income, identity and credit check.

Why it makes sense to avail a Car Loan?

Taking an auto loan and sticking to the repayment schedule is also a great way to built your credit history and built a strong credit profile. This comes in very useful when one is looking for another loan or a bigger loan to buy a house.

Features and Benefits

Usually each lender has very customized offering and special offers for various customer segments, the list below gives an overview on what to expect.

  • Taking a car loan helps one to stretch the budget and take a higher version or a bigger car.
  • Car Loans are quickly and easily available and speeds up the stage in life where one can own a car. The days when one needed to “save for it” are way behind in the past.
  • One can adjust the tenure to manage the EMI amount thus reducing the burden of loan repayment.
  • Car Loans are secured loans as the vehicle serves as the security, and in case of a loan default the Bank can seize the vehicle to recover the due amount. Though a default on the loan is very bad for the credit profile and make it extremely difficult for the borrower to avail any other loan in the future.
  • Auto Loans are mostly calculated based on Fixed Rate of Interest. This results in better financial management as one knows the exact repayment schedule and can plan expenditure accordingly.
  • The Loan Amount which can be availed varies for each bank and it is usually mentioned as a percentage of the On-Road price of the Car. Most lenders fund upto 100% of the on-Road price which makes it a great case for the consumer to avail the benefit