Things to keep in mind while applying for a luxury car loan.
Cars are the second most important asset after one’s house and most of us have had a dream of purchasing our luxurious dream car. To fulfill their dreams and to cater to this there are options for car loans that meet your high-priced car brands. Further under the scheme of a car loan one can purchase cars that are of national brands and cars that are of international brands as well.There are many financial institutions (like banks and non-banking financial companies) available that offer a car loan scheme for luxury cars under suitable interest rates. In India, any salaried or self-employed individual eligible under the scheme of a car loan can apply for the offers of a car loan. Banks and NBFCs offer various car loan schemes to purchases new vehicles as well as owned vehicles. Further, the loan credited to an individual for the purpose of buying a car should be repaid within a tenure of 1 to 7 years, which might be extended to a time of 8 years in some cases.
We have jotted down a few points that an individual should consider before applying for a luxury car loan:
Interest rates- One should compare interest rates of the top reputed banks, NBFCs, and then choose the institution from where they want to avail a loan. It is suggested to every car loan borrower to opt for a floating interest rate car loan for a short loan tenure and a fixed interest rate on car loans that have a longer tenure period.
Loan tenure- Choosing a shorter tenure period instead of a longer one is always advised as one ends up paying fewer interests to the bank. In the case of shorter tenures, one has to pay greater EMI installation, but it saves up the interest amount that he/ she would have to pay if they availed a longer tenure period.
Processing fees- A percentage of the total loan amount is charged as a processing fee for availing of the car loan. If one does enough research on the current market of car loans, then he or she might be able to avail of a deal that offers somewhat less percentage of processing fees. It saves you from paying a lump sum amount before availing of a loan.
Prepayment charges- After depositing 12 EMI payments a borrower availing the facility of a car loan can choose the option of prepaying the rest of the loan amount. But for doing so some banks might charge added fees just to cover up the loss of interest they will be facing on prepayment of the loan. However, after searching a while you might be able to find institutions that let you avail of the prepayment option with minimum prepayment fees charged.
Down payment- Some banks might offer you zero down payment options whereas some banks pay for 90% of the car price. In such cases, a borrower should always avail the option of paying a higher margin from their pocket. This should be followed otherwise on lesser down payments banks tend to extract money from a borrower in the name of interests.
Moreover, owning a luxury car is not just a symbol of one’s status but it also measures the success an individual has achieved. Owning a sleek BMW, Mercedes, or maybe a Ferrari is bound to gather a lot of attention, but at the same point of times leaves you with a boosted confidence. Nowadays, owning a luxury car is not a great deal, an individual with a steady income and a suitable repayment capability can opt for a car loan, in order to get the car of his/ her dreams. But one should also consider the cost of maintaining such a car and other costs that are going to tag along with its arrival. Further, if the roads of India are to be considered these luxury cars are not suitable to be taken out on a whim.
Author’s bio:
Gaurav S. Khurana is the Founder and CEO of Dialabank and has had a great career in the Banking and Financial Services Sector. He has an experience of 18 years in the sector and has worked at Senior Roles including National Sales Head at ING Investment Management India and as the Vice President Citibank. A post-graduate from IMT, Ghaziabad. Gaurav started his career as a Named Account Manager in Xerox.
Being a part of this field for a long time now, he has written many informative articles and blogs benefiting and assisting many in making decisions regarding the policies provided by various banks and non-banking financial companies such as the ICICI car loan policy. 2020-12-22 20:01 Best Desert Safari in Dubai Invigorex Capsules Review - An Honest Review Of Invigorex As Male Enhancement Newcomer Best Quality Online Writing Services at 51% discount Coverage For Wrongful Death Claim 7 Tips For Better Online Banking SoulShare Cross Promoting Your Videos Assignment Help Ukraine Is Now One Click Away from You Historical Replica Chronograph Daytona's Timelessness research paper help Dissertation Editing Services Objective Nursing Essay Writing Tips Best Hotel Management Software
