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Should You Take a Car Loan?
Posted on Monday, June 6th, 2022 | By IndusInd Bank
Purchasing a new car can be very exciting. Many of us look forward to this decision of purchasing a car that is right for us and our families. However, how you go about financing that car is something that you will need to and should give some thought.
You could either use your savings to purchase your car by paying the entire amount upfront or use a car loan to finance your purchase. There are many good reasons as to why even if you have the entire amount saved up; you should consider opting for a car loan. Here are some of them:
Pay over the life of your car
Purchasing a car is a long-term decision since you will be using your vehicle over many years. So it makes financial sense to not pay for it in one go, but pay for it over the years in monthly installments. That is exactly what a car loan will allow you to do. Your instant outgo of cash will reduce considerably since most car loans require only a small percentage of the car’s total price to be paid upfront as a down payment. Rest can be financed in easy and flexible installments.
Preserve your savings
This one is a no-brainer. Accumulating savings and that too which allow you to pay for a car takes considerable time and effort and if there’s anything that the pandemic has taught us, it is that you should never take your finances for granted. Financing this big purchase with a loan will enable you to preserve your savings for any immediate or future needs that you might have and plan your finances better.
Improve credit score
Your credit score is a major factor that lenders consider whenever you apply for your financing requirements. Availing a car loan could be a great way to boost your credit score. Choose the repayment plan of your car loan wisely such that you are able to repay it on time. As you make your monthly payments on time, your credit score will boost enhancing your credit worthiness for future financing requirements.
Flexible repayment tenures to match your finances
The tenure of your car loan can be customized to your financial capability ensuring that monthly EMIs don’t become a burden on you. Many lenders provide a wide range of flexible tenures that you can choose from. IndusInd Bank provides car loans with easy and flexible repayment tenures. Click here to know more.
Fully online application
Today, you can apply for a car loan completely online without ever having to visit your bank’s branch. Just have the documents ready, check for eligibility criteria, fill in your details, and apply.
Last words
To conclude, if you are looking to purchase a new, then you should definitely consider availing a car loan as that reduces your financial burden and lets you make that purchase without burning through all of your savings.
With IndusInd Bank, you can get a car loan at some of the most competitive interest rates in the market totally. You can choose from flexible tenures with an easy and streamlined online application process. So, what are you waiting for? Click here to apply today.
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.
