A car is the ideal family vehicle. It can fit in 4 to 8 people at any time, depending on the type and size of the car. A standard hatchback or sedan costs several lakhs today, while MUVs and SUVs are even more expensive. As such, you may be unable to buy a car through your savings. Thankfully, you can take out a car loan. Car loan providers, like banks and Non-Banking Finance Companies (NBFCs), have started disbursing instant loans, if one is eligible for it. However, there are three things you should do to ensure you get the lowest EMI car loan. They are as under:
Thoroughly research about the loan before applying for one
Most people make the mistake of taking on the loan suggested by their auto dealership representative. However, this may not be in your best interest. For one, auto dealerships try to sweeten the deal by offering things like freebies and waivers. They may claim that you have to pay a low and affordable car loan EMI, which may, not be accurate. In any case, you cannot analyses the cost of the loan until you check it yourself, through research and analysis. Instead of letting the expert auto salesman sell you the loan too, you must first compare the car loans rates online. Get a quote from your preferred loan provider and then visit the dealership and book your car. You’ll find that when you do this, your loan will be must cheaper than you expect it to be.
Use a car loan eligibility calculator
There are two kinds of calculators you must use before applying for a car loan – the car loan eligibility calculator and the car loan EMI calculator. The former helps you understand whether or not you are eligible for the loan whereas the latter enables you to understand the total cost of the loan. You can find the eligibility calculator on the internet and the websites of car loan providers. All you need to do is enter details such as your age, your employment status (salaried professional or a self-employed individual), your monthly income and your expenses. In just a few seconds, the eligibility calculator will compute the exact loan amount you can get upon approaching a car loan provider.
Use a car loan EMI calculator
After the eligibility calculator shows you the loan amount you are eligible for, you should use the car loan EMI calculator. While you can find this calculator on the internet easily, it is better to use the one available on your preferred lenders’ websites. Using the calculator on your lender’s website helps you accurately compute the EMI payable since you can see the minimum and maximum amount available on loan and repayment tenures, as well as the minimum interest rate levied by the lender. The EMI calculator for car loan in India also helps you prepare and modify your budget so that you can accommodate the loan EMI before your loan is sanctioned. If you can show the lender that you can repay the loan, there is no reason for the lender to reject it.
Final word: Car loans last for tenures of 7 years or more. As such, you must exercise prudence before you take on a loan. Research your options, check your eligibility and use the car loan EMI calculator to get the best deal for yourself. It is crucial to know the cost of the loan in advance than to regret it later.
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