CAR LOAN BENEFITS
Buying a car is a dream of many Indians. But is it easy to fulfill this dream? The answer is a big yes; with the help of car loans, your dreams could be fulfilled easily. At first, it's only a prized possession, but later on, it becomes your companion in every hurdle. It brings in a lot of memories like long drives, vacations, and celebrating many festivals. And it can be done just by taking a car loan. The bank finances more than 80% of vehicles in India. However, it is not so easy to get a car loan. One should have a good credit score so that the bank is ready to give you a loan at lower interest rates. The bank finances more than 80% of vehicles in India, and you can also get your car financed by the bank. So in this article, we will tell you the importance of car loans.Car Loans have become an effective service in the market as of now. Car loans are one of the most opted secured loans for automobiles purchase. It is not compulsory to take a car loan, but it is recommended to take a car loan as it has many benefits.
SOME BENEFITS OF AVAILING A CAR LOAN ARE AS FOLLOWED:-
- Interest Rates:- The first question that before taking a loan arises is the interest rate? Is my income enough? So there’s no need to worry as the Car Loan Interest Rate can go as low as 7.50%. Lower interest rates mean savings which would not be possible if you had taken a personal loan or any other loan. Car Loan Interest rate is quite flexible.
- Low Allowances:- Nowadays, many banks are eager to pay 95% of the car’s on-road price, which helps the customer not spend money on insurance and accessories. Thus, people having fewer funds can enjoy the bliss of having a car.
- Flexible Tenure:- Some banks like the Bank Of India give a provision for longer repayment tenure. It helps the customer to be stress-free and can repay the loan conveniently. Although a longer tenure means the longer, you’ll pay the interest. So it is advised to keep the tenure short.
- Simple Process:- Any personal loan or house loan takes many days and months to get approved. But a car loan approval takes less than a day, and sometimes, it is approved on the spot.
- Enhanced Eligibility:- Cutthroat competition among financiers helps the buyer maximize the population’s maximum coverage. So everyone who fulfills the basic income stability can get a car loan from various banks.
- No Collateral Required:- The mortgage car acts as collateral for the loan due to its market value. The total amount is sanctioned up to 70 to 90% value of the car, and this amount can be recovered from auctioning or selling the car when the debt obligations are not completed. Thus it is called a secured loan due to its worth.
WHAT IS THE REPAYMENT MODE OF DEBT IN A CAR LOAN?
In Car Loan, a borrower is given various repayment modes over a period to lessen the financial burden of the colossal amount borrowed. This repayment gives the borrower a chance to conveniently repay this amount and enjoy the luxury of owning a car. As Car is a commodity which highly used by people for comfortable transportation and in times of Covid, traveling from own vehicles has been increased. As schemes of repayment like Bullet repayment scheme and Overdraft repayment scheme are quite popular amongst the creditors. Several other repayment options like EMI(Equated monthly installments), Interest Only Payment, Post Dated Cheques, Electronic Transfer, Debit Mandate are a few of the options provided by the banks. One has the full liberty to choose any of the provided repayment options as one’s payment capability and convenience. An EMI Calculator helps in estimating the loan amount over the tenure.
Thus, the Bank of India Car Loan is one of the best options to opt for a Car loan as it imparts various benefits and lucrative schemes for potential individuals. A Car Loan is a better option in finance due to its flexible tenure, less incurred interest rates, prepayment options, no guarantor necessitated, and several other benefits.
Must Read:- Car loan availing process offline online
