Which Car Loan is Preferable ?

Our country is growing at a rapid pace, and the aspirations of people are in tandem with it. You may be among those aspirants who live in the busy metros, and want to own a vehicle of your own. However, the price tag of the cars is always a concern, and nothing solves it better than borrowing a car loan. So, when you are done choosing the right car to match your requirements, caliber and style, you will definitely move on towards the financials. Usually, the salesman is wise enough to pitch you a financing option, but he will surely draw out his commission. So, why not save those extra bucks and search for a loan yourself?

In India, there are several banks and private financial organizations, which offer various types of car loans. Depending on the budget of your car, and the tenure of the applied loan, different banks have different offerings. If you have decided to buy a brand new car in pristine condition, then take a look at the 'new car loans'.  This type of loan will offer you the greatest borrowing amount as compared to other loans.

Some other popular car loan trends include loan against deposit, and loan against the car itself.  In the latter, the lender has the right to impound your car, if your loan installments are due. The Loan against Car scheme is highly popular among the first time buyers. For applying for this loan, the buyer needs to make a down payment, which is 20 to 30% of the total car value and the remaining amount is borrowed as loan. In this loan, the ownership of the car is leased, and can be changed after repaying the loan fully. This loan is readily provided by the car dealers, with or without commission.

In the recent years, the demand for cars in India has grown significantly as several industries have flourished. So, many banks are now opting for 'fixed rate' lending. The paperwork is simplified, and you can avail the loan within a week. However, financial institutions are known to charge processing fees, and an additional 5% prepayment charge for car loan.

You can avoid a long drawn process by simply applying for a loan online. This process is easy to follow and extremely convenient. Thus, in a few simple steps your dream car will become a reality. So go on and make that purchase.