Auto loans get counted among the most popular and always-in-demand products in car industry. Statistically, more than80 per cent of people who purchase new car go for car financing and loan options. But there are very less individuals who pay attention to the procedure and important considerations that need to be kept in mind while applying for the same. It is important to know and understand how to apply for car loans; however, it is also mandatory to know a few other things that can make a huge difference in your deal.
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Documents That Need To Be Kept Ready – One of the most common reasons why most loan applications get rejected at primary stage is absence of important documents. Since, there is a long list we have summarized the most common ones here:
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Pro-forma Invoice
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Signature Verification And Proof
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Residence Proof
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Income Proof
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Age Proof
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Picture ID Proof
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Bank Statement
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Significance Of Rate Of Interest On Car Loan – It is important to keep an eye over latest car loan interest rates. Better do your homework before applying for loan. See which bank is offering the most reasonable deal, paying higher EMIs might have adverse effect over your savings. There are a number of factors that affect auto loan rates such as duration of loan, car model, type of loan, and so forth.
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Credit Score And History – It doesn’t matter what type of loan you are applying for, your credit score and history will always get considered by lending organizations. For people with good credit score, acquiring car loan is a slightly easier process. For others, it might prove to be a herculean task. So, before enquiring for any kind of financing options for cars in India it is mandatory to get your credit score straight and clean.
