New Delhi. Car loan is becoming a fashion in India since last many years. Big banks and finance companies give car loans to middle class families and then people fall into the trap of those companies. Sometimes people get so stuck that their whole life, their entire earning goes towards paying that car loan. In view of this problem, today in this article we are going to tell you about some such important things related to car loan, after which you will be able to easily take a car loan. Let us tell you some important things that you need to keep in mind.
Give priority to the loan with the lowest interest rate
Before taking a loan from any bank, you should check the interest rate of all the banks that which bank can give you the loan at the lowest interest rate. After this, you should take a car loan with the lowest interest rate. For this, you can give preference to banks like Punjab National Bank, Bank of Maharashtra and Bank of India, from where you can get a car loan at less than 7% interest rate. This loan is not going to burden you much with interest.
Check what will be the loan time period
If you are thinking of taking a car loan, then it is very important for you to keep in mind the time period of the loan, lest you end up worrying about the time period later and you may end up regretting the loan. This must be kept in mind. Many times people get their EMI tied for a long time in the guise of cheap EMI and start getting worried while paying off the car loan. This causes you a lot of loss, because you are giving more money to the bank in the form of interest. Always keep the car loan tenure as short as possible, so that you have to pay less interest.
When you take any loan, it is very important to remember the due date because paying EMI before the due date saves you the fine. So that your hard earned money does not sink in the fine. There are many benefits of paying EMI before the due date. Whereas, your credit score gets spoiled due to EMI suspension.
Take care of your credit and civil score
If you are also planning to buy an expensive car on a bank loan, then you need to keep your CIBIL score right from now on. If your civil score is above 750 then you can get a big car loan offer otherwise the company will refund you.