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Is Taking out a Loan for a Car a Good idea?
Posted on Wednesday, June 22nd, 2022 | By IndusInd Bank
When you have finally made that decision of going ahead and purchasing a new car, the next thing that you need to figure out is how to finance it. You can either pay for it entirely upfront, or take a car loan. For most people, paying upfront is not a viable option as purchasing your dream car can be a pretty expensive affair. In addition, you may find it difficult to buy the car of your choice because of budget constraints if you opt for upfront payment. This is why almost everyone prefers to opt for a car loan.
Let’s dig deeper and understand the reasons why it makes proper financial sense to finance your car purchase using a car loan.
Get Financial Assistance
Buying a car is big-ticket purchase and most of us don’t have that kind of cash lying around in our bank accounts. Even if you do, what if you need that money later for an emergency? Using a car loan to purchase your car is just so much more convenient. You can pay for it in equal monthly installments and can feel secured that you still have your savings intact.
Flexible payment schedules and low interest rates
Today with so many banks offering car loans, there is some pretty hefty competition out there, which benefits you at the end of the day. You can get car loans at pretty decent interest rates with flexible tenures. With IndusInd Bank, you can get a car loan with tenures going up to 60 months leaving you with comfortable monthly payments.
With IndusInd Bank, you also get some of the most attractive interest rates you will ever get on a car loan. For more details, click here.
Increase your credit score
This one may not be that obvious but getting a car loan can help you improve your credit score. As a car loan is fairly easy to pay off, it can greatly increase you credit score. With a higher credit score, you build credibility in the eyes of lenders, which will help you greatly with any of your future loan applications.
Final words
So to sum it all up, getting a car loan is a great idea. It doesn’t put a dent to your savings and you don’t have to compromise on the features and the model of the car that you desire. So, if you are in the market for a new car, do apply for a car loan right here.
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.
