Common mistakes while availing a Car Loan

While obtaining a Car Loan, one must acknowledge all its aspects, compare to avail the best deal. There are certain factors that the borrowers neglect which cost them later. Interest rates, Tenure period, Banks credibility should always be considered while applying for a loan.

It’s every person to dream of owning a car of his/her desire, but it is not possible for a middle-class person due to low finances. Nowadays, with bank loans or NBFCS, the dream of owning a car can be fulfilled by taking sufficient funds from them. Before selecting this option, you must know all the related things about it. To get the best deal, the crucial factor is the lending institution or banks credibility and comparison of the incurring rates. Most people avail a car loan before analysing the repayment options and additional rates and might lose more than expected. All the expenditure costs must be estimated beforehand before opting for this finance option. The Car loan comes with the interest rates, processing fee and more but also with car insurance, its sanctioning fees, maintenance charges, fuel charges etc.

There are many mistakes that a borrower makes during the loan process, and in the end, he regrets his/her decision. Not inquiring about the lender’s full deal or scheme is not the lender’s fault. Still, a borrower must take every information about the car loan because, in the end, this four-wheel asset will stay with a borrower for a long time and have a fraud in the purchase can degrade or satisfy the borrower at the end. So this is why rights are involved for every user to ask the lender about every inch of information, and if they are not informing about the scheme, then the borrower has full-fledged rights to skip that lender or can make a complaint as well. Remember, once the deal is made, then complaints or case both will charge you extra, so it means paying off EMIs and paying for complaints, and other charges will eventually increase the cost of your car.

Eligibility for Car Loan-

There are specific parameters fixed by the lending institutions and banks which one has to abide by. The borrower must be an Indian citizen while availing of this loan. These parameters differ from banks to banks. The borrower can check his/her eligibility for the loan using the Eligibility Calculator. These rules can be checked on the official website or in the respective bank’s branch.

Don’t opt for the significantly high or low tenure period-

One must always consider using an EMI Calculator to devise a specific repayment period per one’s repayment capacity. This calculator helps estimate the sum of the amount payable with incurred interest rates over the loan term. If you choose a more extended tenure period, you might pay more interest than estimated, whereas selecting a short term period may cause a financial burden on the borrower. So the repayment has to be done precisely as a sum of money has to spend monthly over the rest of the loan term. Opting for an EMI is a beneficial option as it is highly affordable, and a specified amount that would not vary has to be repaid over the loan term. Plenty of Repayment options are available, which one can choose as per convenience.

Evaluate the market response about the Car-

The Car you wish to purchase must be not only affordable but also completely efficient. Spending money on a car that doesn’t have a good market value or efficiency might cost you. So for a safer side, one should always evaluate the car’s track record and its other related cost. Fuel charges are of utmost importance while considering for getting a good idea about your purchase. Comparison and research have to perform by the borrower to get an idea about the various deals on Cars. One must also evaluate sanctioning charges, dealer charges, RC passing of Car and license cost.

It is wise if one doesn’t hurry in this process as adequate knowledge will help you get the best deal.

ICICI car loan is approved chiefly based on one’s income proof and credit score. The bank authorities evaluate these things, and the loan amount is decided accordingly.