Types Of Car Loans In India

August 18, 2014 14:25 IST by in Car-Finance.

Buying something expensive and huge is always a big deal for Indian people as they do not save or enough to shelve out INR 5 lakh or INR 8 lakh at one go, which is the reason why financial institutions are so popular throughout the country. For instance, taking a car loan in India is something that is oft-prevalent and a method adopted by most people. There are different types of car loans, which a person can take through various car financing avenues including banks or independent institutions.

Car loan
Car loan

Car financing is a profitable business in a country like India where almost everyone goes for a loan. There are various factors that influence the decision of a buyer while taking a loan, such as car loan interest rates, bank and their budget. For those who want, companies also provide used car loans in India because of the huge second hand market in the country.

There are various types of car loans available for customers, depending upon their choices and budget. For instance, the most popular way of car financing is to make a down payment initially and pay off the rest as loan in equated monthly instalments or EMIs. The other method for taking a car loan in India is to get the entire amount financed from a bank or an institution.

Car loan interest rates are really important and must suit the budget of a particular consumer who wants to purchase a car. It is no hidden fact that the bigger your car is, the higher would be the interest rate. In addition, banking institutions are really strict in their rules and regulations, meaning they do not give car loan in India so easily. A person applying for a loan needs to have an impeccable record that does not include any faults along with having proper documentation for future references.

To put things in a nutshell, it is given that most people in the country go for a loan when it comes to purchasing a car. However, they do not mostly have the proper information about the types of loans they can take in India. For this reason, before going for a loan, one should do a thorough market research along with figuring out options and the suitable one. Not only do car loan interest rates matter, the institution you are taking it from also matters quite a lot.

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