A car has become a necessity rather than a luxury for the modern Indian upper-middle-class family. In some families, each member of the family has a car at their disposal. With this growing trend car loans (CL) has become very common in an Indian household.When we avail a car loan one should keep the following points in mind before and after taking the loan.<\/p>\n
Buy within your budget:<\/strong> Your dream car may be the may be an expensive one; however, think twice before you go for it. Can you afford this car? Take into consideration your monthly expenses, obligations, investments etc. before you go to the car. Take a car loan EMI calculator<\/strong> to know your monthly obligation towards it. Buy your budget to make sure that your dream car does not become a nightmare.<\/p>\n Pay the maximum amount of down payment:<\/strong> When you check your car loan eligibility you might be entitled to a higher amount of loan which you may not actually require. Do not completely exhaust your eligibility; utilize your free cash flow to pay the maximum down payment. This would tremendously reduce the burden of EMI burden bundled up over your head. A lower EMI would mean lesser interest cost paid by you over the tenure of the loan.<\/p>\n Shorter the tenure the better:<\/strong> You might be eligible for a slightly higher amount of loan if you opt for a longer tenure. However, do not be tempted by it, try to squeeze in your EMI in the shortest tenure possible. This might mean a higher monthly EMI obligation nonetheless it will reduce your annual interest cost.<\/p>\n Compare interest rate running in the market: <\/strong>Almost all banks and financial institutions offer car loan in India. A new car loan interest rate in India is presently hovering around 9.00%. It is advisable to compare car loan interest rates on any online portal before you pick up one. \u00a0Remember the lower the interest rate, lighter would be the interest burden.<\/p>\n Do not default on your EMI:<\/strong> Make a monthly\/annual budget and stick to it. Manage your expenses in such a way to make sure that you pay your EMI regularly. Do not miss on any one of them. If you slip on paying a couple of them your bank will declare you as a defaulter and may confiscate your car too. Further, your credit score will deplete and none of the financial institutions might not want to lend you for any purpose.<\/p>\n Consider Refinancing:<\/strong> If you\u2019re not been able to pay your EMI timely then you could negotiate with your or any other bank \/ financial institution for a more favorable interest rate and tenure which you can obligate timely. This is basically taking the same outstanding loan on better terms and conditions which you think you can fulfill.<\/p>\n Compare car loans online not only for the interest rates but also the other terms and conditions such as processing fees, pre-payment charges and foreclosure charges and they do too make a marked difference in the ultimate cost of the car loan.<\/p>\n","protected":false},"excerpt":{"rendered":" A car has become a necessity rather than a luxury for the modern Indian upper-middle-class family. In some families, each member of the family has a car at their disposal. With this growing trend car loans (CL) has become very common in an Indian household.When we avail a car loan one should keep the following […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[10,35,37,36,11,8,39,38],"class_list":["post-87","post","type-post","status-publish","format-standard","hentry","category-car-loans-india","tag-apply-car-loan-online","tag-best-car-loan","tag-car-loan-eligibility","tag-car-loan-emi-calculator","tag-car-loan-in-india","tag-car-loan-interest-rate","tag-car-loan-interest-rates-india","tag-car-loans-compare"],"_links":{"self":[{"href":"https:\/\/rupeemaster.com\/home\/wp-json\/wp\/v2\/posts\/87","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rupeemaster.com\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rupeemaster.com\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rupeemaster.com\/home\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/rupeemaster.com\/home\/wp-json\/wp\/v2\/comments?post=87"}],"version-history":[{"count":1,"href":"https:\/\/rupeemaster.com\/home\/wp-json\/wp\/v2\/posts\/87\/revisions"}],"predecessor-version":[{"id":88,"href":"https:\/\/rupeemaster.com\/home\/wp-json\/wp\/v2\/posts\/87\/revisions\/88"}],"wp:attachment":[{"href":"https:\/\/rupeemaster.com\/home\/wp-json\/wp\/v2\/media?parent=87"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rupeemaster.com\/home\/wp-json\/wp\/v2\/categories?post=87"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rupeemaster.com\/home\/wp-json\/wp\/v2\/tags?post=87"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}