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Can’t Finance a New Car? Try Out a Low-Interest New Car Loan
Posted on Saturday, April 2nd, 2022 | By IndusInd Bank
Buying a car can be a necessity and, at times, even an aspiration. Either way, it is a significant financial decision that can use up all your savings.
For many, even savings don’t suffice for purchasing a car. That’s when you need to apply for a car loan. The good thing is that a car loan comes at a lower interest than a personal loan. Besides, you can easily apply for car loan online.
The Correct Approach
When you’re out in the market, you’ll encounter many car loans that different financial institutions offer. So, how would you know which car loan to apply for?
The first step is to compare the various offerings based on the benefits. For instance, some banks have tie-ups with specific vehicle dealers and offer discounted rates with quicker processing times. Some lenders provide preferential rates to regular customers or existing home loan borrowers in other cases.
IndusInd Bank’s new car loan offering comes with a flexible repayment tenure along with quick documentation right at your doorstep.
Things to Keep in Mind
To avail of a new car loan online, you should have a good credit score. Most lenders prefer borrowers who can show a high credit score of 750 or more.
This could also help you negotiate a better deal, meaning lower interest rates. On the other hand, a poor credit score might compel you to settle for a car loan with heavy interest. Some lenders might even reject your application based on your credit reports.
So, it’s always a plus if you can maintain a high credit score. This helps lenders verify whether you’re capable of repaying the loan on time.
Extra Charges
Another point to remember is that a car loan entails additional charges such as repayment, processing fees, valuation, etc. Most banks or lenders typically fund up to 80% – 90% of the car’s on-road price. Then there are others that finance 100% of the car’s valuation cost, but it’s subject to terms and conditions. If you apply for a loan at IndusInd Bank, you will get funding that you repay through pocket-friendly EMI options.
Documentation Details
As with all other types of loans, a car loan also requires the submission of a few key documents. Besides the primary KYC documents and bank statements, the eligibility criteria are different for different applicants.
If you’re a salaried individual, you must show proof of income by producing 3 months’ salary slips and tax returns. The filing of IT returns applies to self-employed individuals too. If an applicant does not have income proof, they are usually asked to produce property documents or business proof.
Conclusion
Interest rates on car loans depend on your job profile, credit score, loan amount, and the terms & conditions of the chosen lender. So, when applying for a car loan online, make sure you read the terms and conditions properly or consult bank personnel for specific details to get the best deal.
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.
