Car Loan, an Easy Step for Your Dream Car

admin — Fri, 27 May 2011 10:31:21 +0000

Are you planning to buy a new car? Don’t you have enough money? Just think about car loans.

Vehicle has become sign of prestige now. It discloses the living standard. Some times you have to spend a huge amount for your vehicle. Car loans help you to make your ambitions a reality. Record sales are happening in the automobile industry. It is not by any full cash payment. People are approaching car loans as an easy way to get their dream vehicle a reality. There are different steps before taking a car loan.

Calculate your income and fund

A good car may cost above Rs 500,000/. You may not able to make that money as single cash payment. If you are a salaried man and you can save Rs 10,000/ in each month, it is very easy to get the car in your home. You need to find the down payment money. Rest of the money can be paid in each month in the form of EMI. So you should calculate your fund and whether it is efficient for your car.

Select your car

It is the next step. You have to approach the car dealer and select your car. The amount of the car must be affordable. Interest rates must be studied carefully. Please fix the loan period and EMI.

Kinds of car loans in India

Margin Money Scheme

Customer should pay the 10% loan amount with the first installment in this scheme. Rest of amount should be paid as Equated Monthly Installments (EMI) within the loan period. Amount must be paid in the form of post dated cheques.

Security Deposit Scheme

Customer should pay a security amount against the loan granted. After the repayment of the loan, the security amount will be refunded. Customer can earn an interest on security deposit. Comparatively higher EMI is paid in this scheme.

Advanced EMI Scheme

On road price of car is allowed as loan by this scheme. Amount of five EMI should be paid in the initial stage and the rest of the amount should be paid in the form of post dated cheques. The demerit of this scheme is that the customer must pay five EMI as a single installment in the initial stage.

Example

Loan for Rs 300,000 and the interest rate is 12.5% p.a.

Loan Period	EMI
1 Year	Rs 26,449
2 year	Rs 14,046
3 year	Rs 9,933
4 year	Rs 7,892
5 year	Rs 6,680
6 year	Rs 5,582
7 year	Rs 5,321

Car Loans

admin — Mon, 05 Oct 2009 11:10:02 +0000

CAR LOAN

The main thing you have to do before applying for a car loan is to decide which car to buy. You have to first decide your budget for the car. Then choose a car according to your needs. You have to decide whether you need a hatch back, sedan, SUV or MUV. All these will differ depending on the needs and budget of you and your family.

Once you select a car, you have to find out the offers each bank provides. Some automobile companies might have some tie-ups with certain banks which will give more of financial profit. It also will make things easier to sanction the loan. The automobile company will have some executives to help you out in this regard.

The third thing is to find the best loan policy that you will be able to repay back. A loan should never be an overburden to meet the other needs of yours. It will be solved if you select the best loan available for you.

Once the recession gives way to a secure financial condition to the world, the banks will increase their rates of interests of the loans. This is the time of the lowest rate of interest. So, it is the best time to own a car of your own and shine. Why do you have to loose your beauty in the hot sun of the day if you own a car?

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Car Loan, an Easy Step for Your Dream Car

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