Why you should take car loan? Are there any benefits of taking a loan? What is the eligibility criterion? Let us find answers to these questions.
Benefits of Car Loan
Makes buying a car easy: Availing a car loan makes it easy to purchase a car. As per CS Sudheer Bangalore, there are lenders who finance up to 100% of the ex-showroom price of the car.
Flexibility in choosing loan tenure: Lenders offer tenure of up to 7 years for a car loan. You can choose the tenure as per your wish and convenience.
Loans for second hand or owned car: According to C. S. Sudheer Indian Money, most lenders offer loans on used cars. But, the interest rate on loans for used cars will be higher and the loan to value (LTV) ratio will be lower when compared to a new car loan.
Negotiation on interest rates: Car loan interest rates can be negotiated. Lenders are open to negotiation on car loans unlike home loans. This is possible if you have a good credit score.
Collateral is not required: There is no need of furnishing collateral for car loan as the car purchased through the loan itself is pledged as the security for the loan. The lender would seize your car to liquidate and recover the loan in case you fail to repay.
Flexibility in choosing the mode of payment: You can choose your own mode of payment to repay the car loan. However, the repayment shall be made through EMIs. You can pay EMIs by cash or postdated cheques or ECS, as per your convenience and have no Complaints.
Flexibility to choose either fixed or floating interest rate: As per C. S. Sudheer review Bangalore, you can choose between fixed and floating interest rates.
Eligibility Criteria to Apply Car Loan
Eligibility criteria to apply for a car loan vary across lenders. Below mentioned are the general eligibility criteria to apply for car loans:
The applicant must be an Indian citizen.
The applicant must be at least 21 years old.
The applicant must possess PAN card.
The applicant must be employed for at least one year, in case of self-employed; the applicant’s business must be at least a year old.
The applicant must have a constant source of income either by way of salary or business.