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When India confronted the spread of the covid-19 pandemic, the economic distress also enhanced. Currently, loans have become a crucial part of individuals’ lives that aid them in sailing through the tough times and fulfilling the needs of their family and maintaining the standard of living. Many people use credit cards and have not taken up any loan beforehand. Nowadays, a car has become a must-buy commodity for any family, and people who do not want to spend the entire amount in one go generally take a car loan. So, most people face whether to choose an online car loan or an offline one. 

If a person chooses an offline car loan will have to visit the bank branch or the lender’s office eventually and submit an application form with other required documents. The same procedure is followed even after a person conducts initial research online. In an online car loan, the entire loan process from applying the loan to the disbursal process; everything is done online through the internet. First, the required documents for verification of the borrower's credentials are submitted digitally. Then the scrutinisation is done by the Bank or NBFC accordingly, and then the loan amount is also credited to the savings bank account of the borrower via online transfer. This further provides multiple options to the borrower, which are just a click away.

Generally, the documentation process of any loan, including a Bank of Baroda Car Loan or car loan from any other bank, is quite lengthy, and no one is willing to take the stress of the long-drawn process. So when a person chooses to get a car loan online, there is a basic set of predetermined and specifically mentioned documents on the website that the borrower needs to provide. These documents are required to be scanned and uploaded in the online portal along with the online application. Therefore, the offline car loan documentation process is mostly tiresome and lengthy, and mainly they required multiple copies of it.

An offline, personal loan procedure furnishes a personal touch in proper interaction with the financial institution like bank or NBFC, or the company officials. Therefore, people who are good at using Technologies like computers or online portals may feel comfortable and save a lot of time in the application procedures online. But some people are not even able to operate online car loans, so visiting physically the bank branch is preferred. There is no requirement to find time to meet someone on an online car loan. The application can be done even at midnight. Therefore, online car loans are a quick solution when people are in need as no personal interaction is not required in it. 

There are chances of getting inadequate information or risk of misinformation and buyers when any loan seeker gets the help of an external agent for offline car loans. Agents mostly try to push the products that benefit them but are not that good for the customers. But in online car loans, people can conduct research themselves and not have to rely on another person to compare loans or calculate EMI on the official website of all the lenders. The monthly instalments of a car loan can also be calculated with the help of a Car Loan EMI calculator provided on the official websites of most Banks or NBFCs. 

It takes a few days to process a  car loan offline,  as documents must be verified personally. If the documents are inadequate, the applicant is called and is instructed to furnish the additional required documents, and this way, the process gets delayed. So people who want a car loan instantly should choose to apply for it online as the entire process from application to disbursal could be over within an hour. To fill up all the details on the online site, it hardly takes a few minutes. But the offline car loan application can benefit the borrower with some additional benefits and value-added services such as reports, discounts and deals, which can save a reasonable sum of money.           

Read More:-  WHAT SHOULD YOU KNOW ABOUT CAR LOAN

These are a few things you must know before taking a car loan. 

1. The importance of credit score :- The credit score is of huge importance in the case of car loans. A credit score lets the lending company know what type of credit behaviour you have shown in the past. This helps them to assess how big or small a risk you are for them. If you had been a borrower in the past who had paid all her monthly dues on time, you are likely to get a very good discount rate. On the contrary, bad credit history can land you up in a high-interest offer.A good credit score can help ignore the bad records in your credit history therefore try building it.Hence, be very careful about your credit history and credit score.
   
   

2. You will get only 80 percent of your car's value :- People have this misconception that car loan providers provide 100 per cent of the car's value as a loan, but that's not true. The maximum Car loan that is usually given is 80 percent of the value of your car. This is to safeguard their profits in case the borrower of the loan defaults.Hence, you would only be able to get 80 percent of the value of your car as a loan and the rest you would have to arrange somehow. People usually take personal loans to finance the 20 per cent.Check the hdfc bank car loan interest rate here.
   
   

3. Lenders Who have tied up with car dealers might charge extra :- Lenders and dealers tie up to the benefit of both. Dealers get the benefit of retaining a customer by presenting a ready finance option (the car loan company they've tied up with) and the car loan lenders get the benefit by having a new customer. The car loan companies give a percentage of the profit they get by helping you finance your car to the car dealer. This might make the lending company charge that extra amount from you by including it in interest cost or other charges. They might also charge you higher rates of interest with the thought that they are convinced of not going to a lender to ask for loans.Hence, it's advisable to do a proper comparison and then go for a car loan from a lender.
   
   

4. Car loans are better than Personal loans for financing :- People also go for personal loans to finance cars when they either don't qualify for a car loan or their lender doesn't provide a used car loan in case they've bought a used car. It's important to note that since car loans are secured loans, they have lower interest rates than personal loans. Moreover, with so many options available these days it's barely possible that you don't qualify the eligibility of any lender. Maybe you still need more research. This will also help you find lenders for financing used cars. Used car loans often have higher interest rates. In this case, you might opt for a personal loan if the interest rate is exorbitantly high. Otherwise, you must only choose car loans.However, you can choose a personal loan to finance the leftover 20 percent of your car's value that your car loan provider would not provide you.
   
   

5. Longer repayment tenure must be avoided :- Car loans can be repaid in the medium-term as well as the long term. In case you decide to pay it in 3-4 years, you'll be paying lower interest and your car would still be as valuable as it was before. In case you decide to repay it in a longer duration, you will end up paying a lot of interest on it. The total amount you would then pay for the 80 percent loan you took for your car might even exceed the actual worth of your car. Moreover, at the time when you will complete your payments, your car's value might have decreased.

Also Read:- What Is Meant By A Flexible Car Loan? 

The need for money is universal. We can't survive even a single day without money. We all have urgent needs that arise at some unexpected time. And at that time, you may not be in possession of a credit card or asset to collateral. But still, don't panic. If you own a PAN card and Aadhar Card, you can easily apply for a personal loan facility.

What is a personal loan?

It is an unsecured loan that can be availed at any bank, financial institution or NBFCs across the nation.  You are not asked to pledge any asset as collateral to get funds from this loan. Banks will only ask you to fill an application form and attach some essential KYC documents for verification purposes. The sbi personal loan interest rates charged are very affordable and low. Customers get the flexibility to use the funds for various purposes. So you can freely use it for multiple purposes like debt consolidation, wedding, vacation, house renovation, miscellaneous expenses, etc. Documents required for a personal loan Banks will require some KYC documents along with the application form. These documents will be used in the verification stage. 

The documents requested for a personal loan:- 

1. A copy of Pan Card.
   
   
2. A photocopy or xerox of Aadhar Card/ Driving License/ Passport.
   
   
3. Salary slip of last three months.
   
   
4. Bank statement.
   
   
5. A copy of the electricity bill, water bill and other utility bills.
   
   
6. A copy of the offer letter.
   
   

Importance of PAN and Aadhaar Card? 

Your pan card and Aadhar Card plays an essential role in getting your loan application approved as they both are identity proof used in India. PAN card is used to track all your financial transactions. Individuals/citizens above or exceeding 18 years old can apply for a PAN card. Your PAN card will be used to pay all your taxes. At the same time, your Aadhaar card will serve as proof of identity and residential address. Every individual from 12 months can apply for an Aadhar Card. It's crucial to have a PAN card and Aadhar card when you start earning.

 Without them, you won't be able to apply for a lot of documents like:- 

• Demat Account
• Bank Account
• You can't apply for any loan facility
• Get an insurance policy
• Credit Card
• Can't perform high-value transactions

You will have to submit your Aadhaar Card and PAN card to get your personal loan application verified. Banks will ask for four primary documents that are identity proof, address proof, employment proof and income proof. Aadhar Card and PAN card will be the requirement of address proof and identity proof. Advantages of personal loanA personal loan is an ideal loan option to meet your current fund requirement. You can avail a number of benefits by applying for this loan facility. 

Some of the expected benefits you can avail from a personal loan are :-

1. Hassle-free processing :- The entire documentation process of a personal loan is speedy, easy, effortless and hassle-free. You can quickly get your loan application approved within 2 to 7 business days. A lot of banks will approve your application instantly if you have a decent credit score.
   
   
2. Unsecured :- As it is an unsecured loan, so customers don't have to pledge their assets to get funds from this loan.
   
   
3. Flexibility :- There are multiple banks that provide the facility of personal loans. So customers get the flexibility of comparing various loan options and then choosing their ideal one.
   
   
4. Documentation :- The entire application process of a personal loan is speedy and easy. So customers have to fill the application form and attach some required KYC documents like Aadhar Card, Pan Card, Utility Bill, etc. You don't have to submit a bundle of paperwork to get your application approved. You'll have to submit documents to meet your personal loan eligibility calculator.
   
   

Conclusion:-

 Life is full of uncertainty. We can never be fully prepared for what has to come. If you are ever in need of fund assistance, you'll have to grab your PAN card and Aadhar card to find a temporary solution.

Also Read:- Which Is A Better Alternative: A Gold Loan Or A Personal Loan? 

A car loan is the type of loan which is generally availed for purchasing a car without paying the full amount of cash at the time of purchase. In this type of loan, the whole amount of the car is transferred to the customer's bank account and from there it is being paid but the customer is entitled to repay the loan amount in the form of installments of the interest and principal to the way of the bullet repayment system or EMI system in which the interest will be paid first in the form of EMI and then the principal at the expiry of the term. There are different types of repayment options available there and it depends on the customers and the loan providers which option is allowed and which option is availed.

Nowadays it has become very easy to buy a car through the way of the car loan as most of the loan providers are allowing 100% finance where you will not have to pay and the whole amount will be financed or will be given by the loan provided based on good comparison to find a good loan provider from the market. The availability of an EMI Calculator for a car loan on the official website has made it easier to understand and decide the estimations. One of the biggest advantages of a car loan is the hundred percent of the loan is that there will be the availability of paying the same amount which is not availed from the loan providers like that of 20% of 30% of the cost of the car then it would have been gone from the self pocket and as it is already being provided by the bank the same amount can be used in another kind of productive things.

Car loans are very much easy to apply for because most of the things that are being done online nowadays to the way of the internet and the official website of the loan providers have made it possible without going stepping outside to any kind of place especially during the time of the pandemic. The advantage of the car loan is that the flexibility of choosing the tenure period is very much higher in the case of the car loan because all the people are not having the same income level some might have a lower level of income where he will need a long period as compared to that of a person who is having a proper business or having highest salary than will be able to pay as soon as possible and will need a shorter time. For example, Hdfc car Loan Interest Rate is very much lower for the shorter period of time as there will be less risk.

Based on this, there is the availability of the chance of doing a bargain with the loan provider if there is a good credit score. A credit score is the type of score which is allowed and issued by the credit rating agencies and this is of which the loan providers judge to provide any kind of loan or not. On the proper working, there is a possibility of getting a good deal of loan at a very low rate of interest. There are other possible ways in which a person can get the same loan from the bank where the person already has the bank account. Actually what happens in this type of situation is there might be some kind of relationship or bonding with the bank a person would have made for some time and that will only help the customers to avail the loan at a cheaper rate.

Conclusion

To conclude, we can surely say that there is the availability of car loans at a very cheap rate of interest along with the flexibility of choosing the interest rate options which are having in the form of floating rate of interest or fixed rate of interest as per the choice of the customers.

Read More:- How To Get Concession While Financing A Car Through Car Loan 

People who need some monetary assistance generally search for loan options that can cater for their needs. Among so many loans available in the Indian loan market, the borrower may find difficulty deciding the suitable borrowing option. Primarily, the debtors utilise gold loans and personal loans for emergency fund requirements. These loans provide quick disbursal of the loan amount and have manageable official documentation works to do. 

Gold loans do not require the credit score of the borrower to be strong. Still, personal loans require a good credit score of 700 or more mandatorily, as creditworthiness is an excellent factor for the personal loan to get approved. So, now people mostly get confused about which loan is a better option for them. So, an informed, comprehensive study is given below for people in a dilemma of which is the better loan option to choose.

A loan against gold is, or gold loan, where a borrower keeps gold assets with the creditor as a guarantee and gets the loan amount. The value of the gold pledged against a secured gold loan determines the loan amount provided to the borrower. The borrower needs to pay a monthly instalment until the entire loan amount is paid off, and after that, the lender returns the gold deposited with him back to the borrower. 

A personal loan is almost similar to a gold loan but is an unsecured loan where the creditor gets no collateral benefit for security purposes. If a person wants to loan an amount generated without keeping something as a guarantee, it is much harder for the loan applicant to get loan approval. But a personal loan can rescue people who are in immediate need of funds who do not have collateral to pledge.

The Gold loans tend to have a significant difference, compared amount of payout compared to the unsecured personal loan, so the interest percentage of these two loans differs from each other. Further, the gold loan per gram also differs from one gold loan scheme to another gold loan scheme. For example, where interest amounts vary from 7.5% to 29%, personal loans range from 9 % to 24%. This is because gold loans attract a low interest rate as the borrower puts collateral to reduce the risk of non-payment. At the same time, the personal loan has a higher rate of interest for its unsecured nature.

Another factor for a loan is the loan repayment period when the borrower needs to reimburse the loan. Gold loans generally have a shorter repayment period which ranges from 1 week to 3 years. Personal loans tend to have longer terms for repayment, which can range from one year to five years. The shorter loan tenure of a gold loan can be stressful but comes with a lower rate of interest. On the other hand, if a person wants to get a more extended period of repayment, then he needs to pay a higher rate of interest.

The personal loan and gold loan allow the borrower to pay back the loan with equated monthly instalments. But gold loans have flexible repayment options for their customers. Repayment options like interest-only repayment or bullet repayment system enable the borrower to pay back the sum according to their convenience. Therefore, the SBI gold loan interest rate or Punjab National Bank can be lower than other private banks and the same in the case of the personal l too.

The applicant's of a gold loan or personal loan want their lender to process their loan in the shortest amount of time. But the secured gold loan helps the borrower to procure the loan amount faster than a personal loan. Additionally,  in gold loans, people have to pay the processing fees with additional charges for gold valuation, administrative cost, documentation fees and many other things. Whereas in a personal loan, the charges are limited to service fees, insurance and processing fees.

Must Read:- Objectives Of Personal Loan 

People have now taken the Gold investments to a new level with technology. People have now started investing in Gold digitally. During the Pandemic, the footwalk of physical stores reduced drastically and so was the case with Jewelry shops. But there was one Gold trader that saw an increase in sales drastically - Augmont Gold ltd, a digital Gold trader.

Historically we have been investing in Gold in the form of
1. Coins.
2. Jewelry.
3. Bullion.

Then came Gold bonds and mutual Funds.

During the pandemic, another form of Gold investment emerged, Digital Gold.

What is Digital Gold?
Digital gold is bought online and is stored in protected lockers by the seller on behalf of the buyer. It also helps to overcome issues such as keeping Gold secured in lockers or getting it stored in banks. You only require internet banking and you are good to invest in digital Gold.

How does It work?
Digital Gold requires you to pay from any wallet such As GPay, Paytm etc. Brokers also have the option to invest in Digital Gold.

At present, three companies in India offer digital Gold Loan:

1. Augmont Gold Ltd.
2. MMTC-PAMP India Pvt. Ltd
3. Digital Gold India Pvt/ Ltd brand- SafeGold

Apps like Google Pay, Phonepe etc. provide a platform to the digital gold trading companies for trading.

What happens?
Once you buy digital Gold, the company from whom you bought digital Gold, would purchase physical Gold and then store it in their vaults under your name.

How to trade in digital gold?

1. Visit platforms such as Groww, Paytm, G-Pay, etc.

2. Enter a quantity or amount in INR or grams – You can buy Digital Gold at the live market rate.

3. Select your payment method – After completing the KYC process, you will have many payment choices to choose from like card, wallet etc.

4. Your Gold is immediately put in a separate locker and your account is updated immediately and can be accessed anytime.

5. You can sell your Gold whenever you want on the platform itself, just like stocks.

6. In case you changed your mind and want to keep it as physical Gold at your home, you can ask for doorstep delivery of Gold in the form of coins or bullion. Delivery charges apply

Benefits of Investing in Digital Gold:
1. You can get the physical Gold delivered to your home.

2. You can invest a minimal sum of Rupee 1.

3. Digital Gold can be used as security for online loans.

4. Digital Gold is genuine and the purity is 24K 99.5% and 999.9 for SafeGold and MMTC PAMP respectively.

5.  Your purchase is 100%.

6. safeYou can get digital Gold delivered in the form of gold jewellery, bullion or coins.

Disadvantages of Investing in Digital Gold:

1. The investment is limited to 2 lakhs on most platforms.

2. There is no government-run regulating body like RBI or SEBI that governs them.

3. Making charges are applied to the price of Gold.

4. Delivery charges are applied if the physical Gold is delivered.

5. In certain cases, companies only offer a limited period for storage, after which you either have to take physical delivery or sell the gold or auction it.

This never-ending cycle of increased debt burdens leading to a need for instant money always results in inflation. So during unpredictable times, Gold maintains its value and comes out as the winner! There are better alternatives to invest in gold such as Gold ETFs, Sovereign Gold Bonds etc. because gold should be a part of a long term portfolio. If you are looking for getting Gold loans check SBI gold loans, Muthoot Gold loans etc. for checking eligibility and schemes. 

To check the EMI payouts you can use the Gold loan EMI calculator, check interest payments using the Gold loan interest rate calculator, check eligibility using the Gold loan eligibility calculator.

Also Read:- ARE BANKS ASKING TO PLEDGE GOLD FOR SAVING LOCKER RENT 

Loans are financial saviours at times of monetary requirements and needs and the licensed lenders of the nation i.e. banks and Non-Banking Financial Companies (NBFCs) sanction these loans to an infinite number of customers. A car loan is one such loan that is specifically designed to meet the commercial requirement of financing or maintaining a car. The loan sanctioned is secured which means the bank or NBFC you are opting for the loan on demands an asset as collateral to be pledged. A car new or old is the asset demanded, and the complete ownership of the car is retained to the borrower (car owner) only after he/she pays off the loan amount with interest.

A car loan is highly flexible and convenient because of its highly advanced and beneficial features that the banks and financial companies update time and again. Benefiting from a car loan is simple, an applicant can opt via the digital or the conventional offline mode. The online mode includes filling in the basic details (name, age, address, etc.), scanning and uploading the required documents and stating the loan details (loan amount, tenure, etc.). The lender will contact the applicant later on for further details. The face to face mode is as simple as the online mode, and the disbursement of the loan amount is done within hours of the car loan’s approval.

Car loans in India are provided by many banks and financial companies. However, not all lenders have the best and better-suited features. The Punjab National Bank is one of the prominent banks that provides exceptional commercial services. The PNB Car Loan has highly favourable features and terms that one shouldn’t definitely miss. The official website of the bank provides all the necessary details of the car loan.

A car loan, although easy to avail, has certain eligibility criteria that an applicant has met in order to be a car loan debtor. The age of the car loan applicant should be in the range of 18 years to 65 years in most banks and financial companies. However, a few lenders demand a minimum age of 21 years. The applicant should be a working professional. Either of the following categories is accepted: salaried employees (private companies or public organizations), self-employed individuals (private and public limited companies, partnerships, Hindu Undivided Family or sole partnership) or joint application (two applicants). The salary of the applicant should be at least Rs2 lakh per annum in most banks and financial institutes to avail a car loan. A three-digit number that summarises the loan repayment capacity of an applicant is a CIBIL score. The score generally varies from 300 to 900 and one above 700 is mandatory for a car loan. A credit score is extremely important to take out most loans and the loan repayment influences the score’s value. Therefore, maintaining a high score is a necessity.

Car loan documents required and features -

To prove the eligibility criteria, banks and NBFCs demand certain documents that validate them. ID proof and address proof (PAN card, Voter ID, Aadhar card, driving license, passport or any other government-authorized document is accepted), income proof (ITR, salary slips, form 16 or business profit proof), bank account statement (past 3 to 6 months bank balance statement) and credit report. Unlike unsecured loans that have pre-decided loan amounts, the principal amount of a secured loan depends on the collateral’s value, the bank and NBFCs grant up to 90% of the car’s on-road price as the loan amount. The tenure or the loan term of a car loan is a minimum of 1 year and a maximum of 7 years. The interest rate of a car loan varies according to the loan amount and tenure opted. And it starts from 9% per annum. A Car Loan EMI Calculator can be used to know about the interest rates and loan details of a car loan from the online platform of the lenders.

Also Read:- Tips To Handling Car Loan 

SECURED CAR LOAN:- 

A secured car loan is a method of purchasing a car by giving your car as collateral to the bank. However, in this option, the borrower will be in possession of the car, and in case the borrower can't repay the loan amount, then the bank will seize their car and sell it at an auction to recover the loan amount.  Although, a car loan has always been a go-to option to purchase a car in India. There are two types of car loans that are available in the market. So let's learn more about both options in detail.

A number of banks, financial institutions and NBFCs provide the facility of a secured car loan. It is the most popular and smartest way of getting a car through a loan. The interest rate charged on secured car loans is very low because your car will act as collateral for the bank. Missing even a single instalment can affect your credit score. This will leave an impact for six years on your credit report and credit repayment history. And if the borrower can't repay the loan amount, then the bank will seize your car. So it's essential to repay the instalments of car loan EMI on time.

Banks give customers the flexibility to choose a loan repayment structure and tenure according to their budget and income. So borrower's can calculate the EMI amount according to their expenses beforehand using some online tools like a car loan calculator and then choose a tenure and structure according to their requirement and repayment capacity.

ADVANTAGES OF SECURED CAR LOAN:- 

1. LOW-INTEREST RATE:- The interest rate of a secured car loan is comparatively less. As it is a secured loan, your loan is backed by collateral (i.e. your car). So the rate of interest on secured car loans is comparatively lower than secured car loans.
   
   
2. EASY LOAN PROCESSING:- The entire loan processing of secured car loans is very easy, quick, effortless and hassle-free. As stated by the bank, the eligibility criteria are very lenient as one can quickly meet the eligibility criteria and submit all the minimum required documents to get funds from this loan.
   
   
3. LOAN AMOUNT:- You can borrow a huge amount from a secured car loan at a low interest rate because your car will act as a security for the bank.
   
   
4. INCOME REQUIREMENT:- As this type of loan is a secured loan, so your car loan is backed up by the car you're purchasing. So unlike unsecured loans, you don't necessarily need to have a high income to get your application approved.
   
   
5. LONGER LOAN REPAYMENT TENURE:- Customers get an extended repayment tenure for this type of secured loan. So you can repay the loan amount you've borrowed within 12 to 60 months. A number of banks offer this loan facility for up to 84 months.

UNSECURED CAR LOANS:- 


As the name suggests, this type of car loan is an unsecured loan. So you don't have to offer any collateral to the bank. To apply for an unsecured Axis Bank car loan, an individual should have a solid financial background, financial history and a decent credit record. 

ADVANTAGES OF AN UNSECURED CAR LOAN:-
 

1. CAR IS NOT AT RISK:- If you're applying for an unsecured car loan, then your car is not at risk. Because banks will seize your car if you can't repay your secured loan amount, but that's not the case for unsecured car loans.
   
   
2. QUICK ACCESS TO FUNDS:- You can quickly get funds disbursed to purchase a car of your choice. The entire application process of an unsecured car loan is very easy, quick and hassle-free.
   
   
3. LOW-INTEREST RATES:- The interest rate of an unsecured car loan is comparatively higher than a secured loan. But you can negotiate your interest rate and lower it even more if you have a decent credit score. Having a good credit score will also help you to avoid a number of charges. There are various banks that provide the facility of secured and unsecured car loans. So check your requirements, needs and capacity before making any decision. 

Also Read this:- Role Of EMI Calculator In Car Loan 

Lot of leading banks and Non-Banking Financial Corporations are now offering car loans for the purchase of new or used four wheeler vehicles, three Wheelers as well as two Wheelers. With a plethora of choices all around, the customer is often puzzled as to which option is the best from all of them and used car loan interest rate is usually giant than the new car interest rates.

It's also very important to note that the profit on the sale of one car is considerable for the car dealers, therefore, getting a discount has a very good possibility.

Here are a few points you can consider to get a concession while financing for a car through a car loan -

Good credit score:

A good credit score in the range of 750-850 means that you won't even have to look for a discount because a lot of lenders would already provide you with the best deal they have. Such a decent credit score means that you had been a very good borrower in the past and you had repaid your loans on time which makes lending you the loan less risky.

Not so easily moved colour:

you want a discount on a car, you can easily get a good discount on those colours of the model that are not preferred by people generally, this is because those cars are difficult to sell and who would want their product to not get sold?! Therefore, if you go for a less popular car colour, you have a very good chance of getting discount.

Not so popular model:

Car Models that are not very popular are also very easily discountable since people refrain from buying them and the car dealers would not want those models to stay in the showrooms forever. Therefore, you can readily get discounts on them.

Negotiate well:

People think negotiating in case of a car loan is not possible but that's a myth. Car dealers earn a decent amount of profit on each car's sale therefore you can get a good amount of discount if your negotiating skills are good enough.

Loyalty Bonus:

Suppose you are having an Alto k10 and now you want to buy a Hyundai I 20. If you buy the new car also from the same dealer, then you can ask for a loyalty bonus. There are chances that you will get this before even asking for it.

Cash in hand:

Upfront cash is always appealing to any lender, if you give a more down payment, there are very good chances to get a good discount on your car.

Check for car loan interest rate HDFC here.

Buy during festival season:

Lenders offer unimaginable discounts during festivals such as Eid, Diwali and people buy a lot during the festival season too.

Avoid extended warranty:

Cars usually come with a warranty of one to two years. A lot of dealers would ask you to get an extended warranty and charge a good amount against it, try avoiding that as they are very choosy with what they cover under warranty and what not.

Avoid dealers accessories:

Dealers have filled their showrooms with trendy accessories to lure customers into buying them. They usually offer these accessories at a higher rate than what you will get at other stores.
Compare compare compare:

There are a lot of options available these days and before doing a thorough research, it's not very smart to buy a car. You might be missing on an unthinkable deal if you haven't researched we'll. Therefore do a proper, detailed research and then go for buying a car. These are a few very helpful points to note if you want to get a good amount of concession on your next used or brand car's purchase.

Read More:- Employability For Car Loan 

Loans like any other financial transaction require consideration to existing, i.e. there must be some benefit to both parties for participating in this transaction.Loans in the financial system also act as an instrument of debt and are utilized for creating immediate liquidity of cash or capital, or in any other form, and to spread out the burden of a heavy expenditure over a period of time. This helps the loan receiver to continue his work or to undertake the transactions he needs to make in order to fulfil his aims. 

The loan provider also benefits as firstly he has successfully moved the funds in the market instead of just saving them. This allows him to get good returns on his investment as at the end of the tenure period he receives the principal amount of debts and in addition to it, he receives the interest at which the loan was provided.

Loans are classified into two types on the basis of the provision of collateral for them.

• Secured loans: These loans are guarded with collateral of some value which assures the provider of the commitment of the loan taker and also saves him from absolute loss in the event the loan turns out to be a bad debt.
  
  
• Unsecured loans: These loans are not provided against collateral.  
  
  

One of the most distributed forms of unsecured loans are PERSONAL LOANS with that you will get use EMI calculator personal loan, these loans also possess some inherent limitations which can be summarised as follows :

1. Illegal Activities:

It ought to come back as no surprise that confiscating a private loan to fund nonlegal activities could be a common restriction among lenders. One distinguished on-line loaner states in its commonly asked queries sections, “Our loans can not be used for… gambling, adult businesses, or alternative legal activities.” whereas not all loan suppliers state this expressly within the loan agreement or terms, borrowers ought to bear in mind that obtaining caught exploitation funds for any price that falls into an area of lawfulness might cause a haul. The loan company has the correct to recall a loan if that takes place, which means the total balance becomes due instantly.

2. Education Expenses:

Nearly all lenders prohibit the employment of non-public loan greenbacks once it involves education, specifically paying for tuition or alternative prices directly tied to attending a university or university. which will embrace space and board, books, technology or alternative student fees that may usually be paid out of pocket or through a student loan. though some borrowers might not assume employing a loan for education expenses isn’t an enormous deal, doing this might break the law. below the reality and disposition Act, students have a special provision because it relates to personal education loans that state a student recipient has thirty days to simply accept the terms, also as 3 days when approval to cancel the loan fully. Most personal loans don't have identical express provisions for student borrowers, creating it nonlegal to use the funds for education.

3. Paying off a Loan Balance: 

Several loan suppliers conjointly impose a restriction on borrowers relating to paying off a loan balance with an identical loaner. Let’s say you've got a ₹1,200 balance on a private loan with a loaner, and you choose to require a brand new loan for ₹5,000 with an identical bank. among the loan agreement, there's possibly a stipulation that states the loan income can not be accustomed to finance or pay off a current loan balance, which means the recipient is cursed with 2 loans and 2 corresponding monthly payments.

4. High Fore-closure cost:

Personal loans are usually bound with high Foreclosure costs as early Payment might cause the loan provider to lose on his profits in the form of interest on the loan. 

The HDFC BANK is a public sector bank in India. HDFC personal loan status checking you will get from the website and HDFC Personal loan offering will be for  various special consumers like government employees, Defense personnel, pensioners, etc. 

Also Read:- What Is The Reason Behind The Non-involvement Of Collateral In A Personal Loan? 

Personal loans are primarily used now, as people are using this more because it’s easy to apply, and it doesn’t take much time to disperse the amount into the candidate’s account. Personal loans can be used in different ways.

The various objectives of a Personal Loan are?

Personal loans are primarily used now, as people use this more because it's easy to apply, and it doesn't take much time to disperse the amount into the candidate's account. Personal loans can be used in different ways.

• For buying a new automobile:- People take new vehicles to meet the daily travel expenses. Certain types of loans, such as advanced car loans, three-wheeler loans, two-wheeler loans, and so on, are now available on the market. People can obtain the vehicle in hand later by paying a few instalments. However, by doing so, we are exposing our vehicle to the company and giving the company the right to take over if there are any dues or late payments. Personal loans are beneficial in this situation because they are less confined and provide greater flexibility.
  
  
• Filling other loans in:- People make money when they need money, and when they can't send them money on time, they take out the next loan to pay them off. When people take other loans to fill other needs and don't have enough money to pay the EMI. And the interest rate of others are comparatively higher, so people take the personal loan as its interest is lower than others and fill up the other EMI. Every human dream to build their house as it is a necessary amenity, people who can’t buy a house with their own money, so this type of loan, i.e. Personal loan comes in handy.
  
  
• For wedding events:- Marriages are the most awaited event that happens in a person's life. Marriage looks beautiful and seems glamorous. The whole process isn’t. It is literally from planning a small home party to a big event like marriage coming behind a considerable budget. Banks are providing a personal loan to help people with acquiring such amounts and with financial assistance, and the individuals who need the above can go for a Personal loan and apply online.
  
  
• Lowers burdens:- When a person takes a personal loan to pay back the burdens they have caused, they can use this money to pay the repayment amount. When people can't afford to pay their other loans' EMIs, they can use a personal loan to pay them off.
  
  
• The least money goes wasted:- As the individual opts for a down payment, they will have fewer months in hand before that contract finishes, and the lesser the period, the lesser the interest burden. A personal loan is among the best in the market as it has a low personal loan interest rate.
  
  
• Educational use:- People use the amount from a personal loan to fill the fee payment of their children or themselves. When people are not able to pay their fee, they use this amount to pay them.
  
  
• For medical purpose:- People who might not have the money will take out a personal loan to pay off their debts. A personal loan can use this at any time. These are readily accessible and easy to apply. The Central Bank of india personal loan provides a good amount under short interest; one can choose this over.

What are the reasons behind people choosing a personal loan over other loans available in the market?

• No collateral
  
  
• Flexible tenure
  
  
• Large loan amount
  
  
• Lower interest rate
  
  
• Quick dispersal of money
  
  
• Few eligibility criteria
  
  
• People can use it for multiple uses
  
  
• Large market options available
  
  

Conclusion:- People can use a personal loan for various purposes. The main reason for people choosing personal loans over other loans is due to their merits. People can use a personal loan in various ways. Some of them are mentioned above in detail, i.e. for the medical purpose, educational use. The least money goes wasted, Lowers burdens, For wedding events, buying a new automobile, etc.

Must Read:- Choosing personal loan foreclosure 

If a person has an emergency medical bill to settle and needs Rs 5 lakhs, and if he faces a shortage of Rs 3 lakhs, then taking a gold loan can be a good alternative. If the person already has a good bond with the Bank, then the bank relationship manager can help by giving an unusual gold loan scheme that can save a good amount of money. The bank can offer the remaining amount to the person if he surrenders the locker he has with that Bank and thereby apply for a gold loan. The surrender of the locker can save annual locker charges of at least Rs 8000 and can supply him the amount that he requires to meet his expenses. The person used the locker to keep the gold safe; now, he can get a gold loan instead of it.


After the covid-19 pandemic struck, gold loans have become vastly popular among the masses even after the prices of gold touched Rs 50,000 per 10 grams. Observing the appetite for Gold loans in the Indian loan market, the Reserve Bank of India also permitted the Banks to deliver gold loans to their customers at an enhanced loan to value ratio. The RBI allowed the loan to value ratio against gold loans at 90% of the value of gold pledged until 31st of March 2021; it again came back to the conventional 75%. Enhanced loan to value ratio means getting an additional amount of loan against the exact amount of gold.


A bank locker is considered a safe storage place for multiple items, mostly assets like gold ornaments, diamond jewellery, articles or jewellery made of silver or legal documents like a will or insurance policy. Gold loan against Bank lockers can also be forfeited if the person fails to repay the loan. The banks can have the malafide intention of taking away the accumulated Gold jewellery of a middle-class borrower. A person holding a bank locker needs to expend a nominal amount as annual rent. In contrast, in a gold loan, the liability of paying the loan back cost heavily upon the borrower.


Sometimes the lending institution can offer gold loan overdraft schemes at nominal processing fees and even facilities like pay only interest when a customer utilises the overdraft facility. The interest rates on gold loans can start from 7.4 per cent, and the monthly instalment that a person needs to give against a gold loan every month can be evaluated in a gold loan calculator. If a person does not use a credit facility, they benefit from paying less to the bank against the locker charges if he had used it to store his assets, especially gold.


Banks generally push the customers to have a gold loan scheme in the bank overdraft facilities where a person needs to keep their ornaments secured with the bank to take a gold loan overdraft facility. This further provides insurance on the pledged gold and saves the cost of renting an individual locker. But many customers fall into a debt trap when they give up their locker facility and take credit lines from the lending institution. On the other hand, Manappuram gold loan rate or gold loan from any other bank has numerous benefits and flexible repayment options that can be profitable compared to a gold loan against a Bank locker. If the borrower defaults in paying back the loan amount, it will not only auction off the pledged gold jewellery but also hurt the borrower’s credit history. The banks will make good of their loss if a loan turns into non-performing assets through this auction. The experts always recommend getting a gold loan only if there is a financial emergency, as the jewellery pledged does not have any utility value.

Also Read:- Why is the Gold loan profitable?