Cheapest Car Loan: After taking the loan, it is your responsibility to pay the EMI on time. This will not only improve your credit score but also your relationship as a customer with the bank.
Cheapest Car Loan: Many people plan to buy a car at the beginning of the new year because of attractive offers. Car loans play a vital role in helping us to fund a new vehicle. When you apply for a car loan, you make a down payment and the balance is paid by the banks. Thereafter, the borrower repays the car loan in installments along with interest. The loan amount can be decided based on your fund requirements, monthly income and credit score. The higher the downpayment you make at the time of buying a car, the lesser will be your EMI burden.
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It is important to keep these things in mind while taking a car loan
- Generally, banks try to keep the tenure of the car loan longer. Banks argue that this will reduce your EMI. But remember that even though the EMI is low, you end up paying more money to the bank by paying off the car loan for a longer period. The shorter the tenure of the loan, the lesser you will have to pay both the principal and the interest component on the loan.
- It is your responsibility to pay the EMI on time after taking the loan. This will not only improve your credit score but also your relationship as a customer with the bank. Experts believe that customers should adopt a disciplined approach in the matter of loans. The sooner the loan is cleared, the better.
- Presently, many banks are offering attractive interest rates on car loans. You can choose them according to your needs. Presently the interest rates are low and if your credit score is above 750, your chances of getting the best deal also increase.
- One suggestion is that you should pay your car loan EMIs on time to avoid late penalty charges and default. If you do not repay the loan, the bank can confiscate the car to recover the dues. Here we have shared a list of banks that are offering the lowest interest rates on car loans up to Rs 10 lakh for a tenure of 5 years.
,Input- bankbazaar.com,
(Disclaimer: All figures are taken from the respective bank’s website as on February 2, 2022. Here is the calculation of EMI on a loan of Rs 10 lakh for a tenure of five years at the lowest rate that banks are offering. Processing fees and other charges have not been included in the calculation.
(Article: Sanjeev Sinha)
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