Car Loan: With the lifting of the lockdown, the car market is now gaining momentum. People are avoiding traveling by public transport. Therefore, after the epidemic, car sales have started increasing. Car loan portfolios of banks have also started improving.
If you are also planning to take a loan to buy a car, then you should keep some important things in mind. If you want to take a loan easily or avoid losses, then keep some important things in mind. Let us explain in detail how to get an easy and cheap car loan.
1. Make a budget before taking a loan
Before buying a car, decide its budget. Decide which car you are going to get. Industry experts say that before buying a car, people do not calculate secondary expenses, such as car insurance, petrol-diesel expenses, repair expenses, depreciation etc. Because of this their expenses increase. Do keep this cost in mind.
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2. It is important to maintain a good credit score
Not only a car loan, but a good credit score is required to take any kind of loan. Good credit score can provide you cheap and easy loan. Timely repayment of credit card dues and other loans adds to your credit score. Hence it is important to maintain a strong credit score.
3. Decide which car to buy first
Cars are not bought very often. So before buying, decide where the best deal is available for you. Experts believe that the customer should choose the car according to his need. Not the very expensive and most popular car, you should choose your option keeping in mind. If someone is getting a car of the same feature in a cheap offer of a company, then it should be selected. With this you will be able to buy a car even in less loan. This will definitely reduce your EMI burden.
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4. The bigger the downpayment, the better
The higher the downpayment while buying a car, the lesser will be your EMI burden. Large downpayment will reduce both the principal and interest component of the loan. The lower the principal amount, the lesser the monthly installment you will have to pay on the car loan.
5. Keep the loan tenure short
Generally, banks try to keep the tenure of the car loan longer. Banks argue that this will reduce your EMI. But remember that even if 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.
6. Pay EMI on time
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 with the bank as a customer. Experts believe that customers should adopt a disciplined approach in the matter of loans. The sooner the loan is cleared, the better.
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