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Car Loan

Buying a car is a dream that almost everybody cherishes. However, you might not always have the money to fulfill your dream. In this kind of a situation, you can go for a car loan to make your dream come true. Owning a car not only raises your social status, but also fulfills your transportation requirements. If you are making plan for a vacation, then reaching there using your own car will really be a thrilling experience.

What is a car loan?

A car loan is a form of personal loan that you can use to buy a car. Car loans are also called as automobile loans. Car loans are becoming popular financing options all over the world and more and more people are going for car financing to buy different types of cars.

How can you choose a good car loan in India?

When you have made a decision to buy a car, then you should select a good car loan in India - one which offers you a lot of financial independence and flexible repayment terms. As soon as you have chosen a model, it is advisable that you receive a quote from the car dealer. Normally, auto dealers have association with car financers and this might help you strike a good deal.

You can also visit 2-3 car loan companies and compare the interest rates and other terms and conditions offered by them. They will review your income details and decide whether you are a trustworthy borrower or not. You should be frank and disclose every detail that they want to know about you. If they find your details satisfactory, they can approve you for a car loan.

The next thing that you should do is to decide the repayment term or the number of years for which you are taking out the loan. If you go for a long repayment term, the EMIs (equated monthly installments) will be low but the interest rate will be high. In contrast, a small repayment term will ask for higher EMIs but lower interest rate. If you want to pay off the loan quickly, you should choose a short repayment term. However, at the same time, you should be confident about your capacity to pay higher installments. If your financial capacity doesn’t permit you to make bigger installment payments, then you should go for a longer loan term.

You can receive a loan amount of up to 85% of the car value. Some finance companies might deal with other expenses. Therefore, you have the task of finding out the best financer for your automobile. You should go for a loan that comes with the most affordable rate since this lowers your EMIs.

Advantages of car loans

Given below are the key benefits offered by car loans to the customers:

  1. Flexible repayment terms
  2. Fast loan processing
  3. Simple monthly installments
  4. Cheap interest rates
  5. Minimum documentation requirements

Car loan providers in India

Given below are the names of the prestigious car loan providers in India:

  1. SBI Car Loans
  2. HDFC Bank
  3. Citibank
  4. ICICI Bank
  5. Axis Bank
  6. Bank of Baroda
  7. Sundaram Finance
  8. Maruti Finance
  9. Allahabad Bank
  10. United Bank of India
  11. Andhra Bank
  12. Union Bank of India
  13. Bank of Maharashtra
  14. Canara Bank
  15. Punjab National Bank
  16. Oriental Bank of Commerce
  17. Dena Bank
  18. UCO Bank
  19. Federal Bank
  20. Karnataka Bank Limited

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