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How to choose New Car Loan?
Posted on Friday, April 23rd, 2021 | By IndusInd Bank
Most car buyers invest a lot of time to analyse which car theyneed to buy and how much money they can invest in buying a car? And, mostimportant is how to arrange funds for it?
An individual can arrange funds either by using their own money, i.e. savings or borrowing funds from a financial institution or non-financial lenders.
However, using your savings for a new car can block your funds for other purposes. Whereas, borrowing from some unorganized non-financial lenders can be a costly affair. But, borrowing a loan from Banks or any other financial institution can be a quick and low-cost process.
Moreover, while choosing a new car loan, some factors need to betaken care of. Does the lender provide low processing fees? What is the bestinterest rate for new car loan offered by the various financers? Is there anyinstant disbursal for new car loan available or not? Etc.
So, let us have a glance at the important factors for choosing a new car loan. Looking to apply for a new car loan? Click here to get started!
Compare and get the best interest rate for new car loan
Interest on a car loan varies depending on the selection of car model, lender, credit score, repayment potential, etc. Even most of the banks scale down their interest rates for their existing customers.
So, for getting the best interest rate for new car loan, the borrower needs to check the various bank proposals for the car loan and analyse which will be the best one.
Evaluation of credit score beforemaking application
A good credit score is one of the essential criteria that needs to be fulfilled for getting a car loan. The backbone of a loan is the credit score report which will work as a barometer for various lenders to check the borrower’s repayment capacity.
For instance, if the borrower has a relatively low credit score than expected, the borrower will get a lesser amount of loan, high-interest rates, etc. Or, it may be possible the loan application gets rejected by the lender. So, it is a mandate to check the credit score before applying for a car loan.
Low processing fees
Many banks and lenders launch special offers during the festiveseason, new year, etc. In these offers either they waive off or reduces theirprocessing fees for the applicants.
Still, you must verify that you are not charged with any additional charge or high rate of interest rates for compensating the waived or reduced processing fees. Click here to apply for your IndusInd Bank car loan now!
Foreclosure and instant disbursalfor new car loan
Many lenders have their policies for foreclosure penalties and instant disbursal for new car loan. Therefore, while selecting the banker, you should ask them about the foreclosure process, penalties and policy for instant disbursal for new car loan.
Takeaway
Before applying for the new car loan, you need to be preparedwith all important documents like your ID, ITR, Bank Statements, etc. Moreover,you have to arm yourself with the proper knowledge on the factors about a carloan.
So, consider the above-listed factors and get the best deal which suits your budget and checklist. If you are in need of a car loan, IndusInd Bank has some lucrative car loan options for you. The vehicle loans come with attractive interest rates and flexible repayable tenures. Enquire now at IndusInd Bank to know more about the car loans.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
