The most important criteria to avail a car loan is that the applicant should be a salaried or a self-employed professional. Anybody with a job or a business can avail a car loan. Looking for the perfect car loan is a doable task. Listed below are a few key things which you should keep in mind while searching for a car loan.
1. Car List
First things first, you need to decide which car you want to buy. Make a list based on your choices and then zero down on one car you like. You can do some internet research or go through some auto magazines. If you plan to buy a used car, then you also get suggestions for registered used cars online. You can avail a used car loan to purchase it.
2. Price
The car that you choose should fit your budget. Make an informed decision based on your needs. There are many cars which would look appealing, but choose the one which suits your needs. You can use a car loan EMI calculator to see how much monthly EMI you will have to pay for the loan amount based on the price of the car.
3. Credit Score
If you want to avail a new car loan or a used car loan, a lender will first want to know about your credit score. If you have a credit score of 700 and above, then there are high chances of loan approval. Maintain an impressive credit score if you plan to take any type of loans in the future.
4. Additional expenses
As is the case with any purchase, there are additional charges with it. With a car come the expenses of petrol/diesel, servicing, accessories, security measures etc. You need to take these expenses into consideration and do the research accordingly.
5. Compare Offers by Multiple Lenders
Comparing the offers from as many lenders as possible give you clarity on who is offering what and whose offer is a better one. You can come down to the best rate for the car loan and choose a trustworthy lender.
How to Apply for A Car Loan?
You can now avail a car loan from the comforts of your house. To apply for a car loan online you need to follow the steps below:
- Visit the lender’s website or download their mobile app
- Fill in the required details such as identity proof, address proof etc.
- Enter your loan amount and tenure
- Get approval and disbursal on the spot.
The above-mentioned points are what you should consider while buying your first car and take the right decision backed by good research.