Car Loan Apply
When Applying for a Car Loan
Buying your dream car can become a lot easier with a car loan.
Here are the top 3 factors to keep in mind before applying for a car loan
1) Get your own credit report Apply online at https://www.cibil.com/creditscore/ and follow the instruction
given there to get a copy of your own credit report. Check your credit report thoroughly
to spot errors. If need be, use our advisory services on CIBIL Report to get any
errors corrected. Remember any errors in your credit report can reduce your chances
of getting a good car loan offer.
2) Negotiate smartly to get the best car loan rates
Here are suggestions by Harsh Roongta, Former CEO, ApnaPaisa on how even a layman
can negotiate a good car loan rate.
3) Opt for fixed rates of interest : Car loans are available at
completely fixed rates of interest for the entire tenure as well as floating rates
of loan. Make sure that the car loan that you are taking is also fixed for the entire
tenure of the loan.
4) Be aware about the Processing fees and Pre-payment Charges :
Most car loans have processing fees ranging from 0.50% to 1% of the loan amount
. Most car loans will also charge you a fee if you wish to pre-pay the loan of between
3-5% of the loan amount repaid. Some lenders will not allow pre-payment for the
first 6 months and some lenders do not allow partial pre-payment.
5) You do not have to necessarily buy car insurance from the Car
dealer : If this is your second car and you are selling off the first one and have
had a history of no claim bonuses on the last car then you can transfer the no claim
bonus to your new car. Use our car insurance section to compare the deals available
on new car insurance with no claim bonuses.
Do not sign blank application forms or documents and keep a copy of all documents
submitted to the lender for your future reference. Any promise made by the DSA or
even an official of the lender has no value unless it is in writing or at least
on email.
So if you are basing your decision on any such promise make sure you get it in record
in some form.