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You have been making a lot of effort in researching the car you want to buy.
Different brands, models, performance, there are so many factors to consider before buying a new car. But do you know, what all things you need to know before availing a loan for your new car?
As important as it is to look in detail the performance of the car you are going to buy, it is equally important that you understand the basics of availing a car loan. Read below to understand different factors that affect your car loan Emi and how can cut out on unnecessary expenses.
Down payment is the amount that you will pay in lump sum at the time of purchasing a car. The higher the down payment, the better car loan interest rate you will receive on your loan.
Some institutions provide car loan at fixed interest rate while some offer variable interest rate. Fixed interest rate will be slightly higher than the variable but it will save you from the risk fluctuations in the interest rate.
Tenure of your car loan will determine the final cost of the car loan. If the loan tenure is of shorter period of time then your Emi will be higher and vice versa.
This is one of the most important things that you need to keep in mind before availing a car loan. Be it the eligibility criteria or the documentation, it is vital that you choose the lender that offers convenient process. There are several lenders that have online portals, enabling you to apply for car loan application online.
Keeping your CIBIL score high will help you avail car loan at better interest rates. CIBIL score is nothing but representation of your credit history. The better the credit history, the better car loan interest rate you avail.