Blog #hdfc car 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 

Nowadays, Cars are no longer a symbol of luxury but they have become a symbol of necessity. Many Indians do not just desire a Car but need it. This is why many banks and financial institutions offer Loan schemes for people wanting to buy a Car.

Car Loans have a rate of interest starting from 7.25% per annum in India. The processing fees for the Loan process depend upon the Bank you apply to. The Loan tenure for Car Loans generally ranges from 1 to 8 years. The applicant for a Car Loan should be below 75 years and above 18 years of age. The applicant should be a resident of India and have a net monthly income of INR 20,000. Banks demand few documents for verification before the sanction of a Car Loan.

There are many car loans available in India. The most popular ones include:

1. Bank of Baroda Car Loan
2. ICICI Bank Car Loan
3. HDFC Car Loan
4. Bank of India Car Loan
5. Kotak Mahindra Bank Car Loan
   
   

Car insurance is a very important aspect while purchasing a Car. The insurance policies opted by the borrower can help him/her cover certain damages that might happen in the future.

Given below are few advantages that Car insurance provides to the owner of the Car:

• According to certain Laws of India, Car insurance is mandatory for every car owner. This was first introduced by the vehicle act of 1988. If a person driving in India is caught without Car insurance by the concerned authority members, he/she would be obliged to pay the penalty for the same. You should always carry the car insurance policy papers along with you while driving your car.
  
  
• If by any chance, you are involved in a car accident where another vehicle, a pedestrian, or some else’s property is involved, the insurance provider would have to pay for your Healthcare bills and/or for the repair for the damage that has been caused to your Car. This can help you a lot in reducing your burden of bills in these difficult situations.
  
  
• There are several Car insurance policy options available for your help. One of them is Comprehensive Car insurance. With the help of comprehensive Car insurance, any third-party injuries/damages are covered by the insurance provider. The cost of damages, injuries, and repairs are also covered in case of natural calamities, fire, explosions, acts of terrorism, strikes, or if your car ever gets stolen. This makes the comprehensive loan policies one of the boast popular Car insurance policies in India.
  
  
• Many times, car accident survivors are faced with legal actions and procedures. Many car insurance schemes offer to cover the legal charges involved in these situations. This benefits the car accident survivor in covering all the legal fees required to be paid until the legal proceedings come to an end.
  
  
• Many insurances provide also offer the option of a personal accident cover. If not, the customers also have the option to ally for it as an add-on. If the policyholder by any chance dies during the Car accident, the policyholder’s family members would receive compensation from the insurance company. This can help the family members in ways unimaginable.

These were the reasons why it is advantageous to opt for a car insurance policy in India. 

You can use a car loan EMI calculator available on several online portals to estimate the monthly repayment amount that you need to pay back to the Bank till the end of the loan tenure. The requirements for the use of these calculators include Loan Tenure, Loan amount, processing fees, rate of interest charged, This can help the people interested in Car Loans to budget out their monthly expenses properly.

Some popular car insurance offered by insurance firms in India are:

• Digital Car insurance
• Bajaj Allianz Car insuarance
• Bharti AXA Car insurance
• Kotak Mahindra Car insurance
• Liberty Car insurance
• State Bank of India Car insurance

Also read this: How Credit Card can help you during Emergency? 

Having a car seems to be a luxury item in the past, and now it has become a necessity. A Car Loan can not only be availed for the purchase of a new car but a used car purchase as well.

Important terms to acknowledge before availing of a Car Loan :

Before we get into the specifics of how Car Loan operate, let's take a moment to familiarise ourselves with some of the more popular words you might come across when you research loan choices.

Annual percentage rate (APR) — APR is the annual percentage of the amount you will pay to borrow money, plus interest and fees. The greater the APR, the more you will owe in exchange for the loan.

Down payment — This is an initial payment made against the purchase of the vehicle. It may be money, the value of a trade-in car, or both. The down payment reduces the total sum you plan to finance, which will result in lower monthly payments.

Loan Tenure— Also known as loan period, which is the amount of time you have to repay the loan. Keep in mind that the longer the duration of your loan, the more you're likely to pay interest.

 
Monthly payment — The sum you owe per month is referred to as your monthly payment. It is made up of principal, interest, and all other fees that might apply. The principal is the amount borrowed less all fines, taxes, interest, and additional charges.

Complete cost — The total debt sum, or total principal and interest that you can pay for the duration of your car loan.

What are the key points in acquiring a Used Car Loan?

Before applying for a HDFC car loan from a lending institution or a bank, some points should be considered.

 
Do research- Study the Car loan interest rates, commissions, and other terms offered by several banks and lenders to understand the market, and then choose the lender to which you want to submit a Car loan application. The subtle differences in interest rates and other terms can make huge differences over time.

 
Vehicle Quotations- You can also get quotations for the vehicles you want from various dealers. In addition, some of these dealerships may form alliances with banks and may offer the same cars at discounted prices. By contacting multiple distributors, you can find and get the best price.

 
Provide complete documentation- Website and keep the documents to send with your loan application. Check the validity of your driver’s license and other documents, and renew them when the expiration date approaches. Don't allow the lender to extend/reject the loan just because your records are incorrect. 

EMI Calculator- Use an auto loan EMI calculator to calculate the EMI you need to pay for a given loan amount and term. This tool will help you figure the approximate loan term you are familiar with and the amount of EMI that can be handled each month. By performing this work, you will negotiate securely with bank representatives on loan terms and EMI issues. Remember to consider the total cost of owning the vehicle when doing this. From an EWI perspective, a longer-term may seem attractive, but it will make you more interested.

 
Fees and document fees- If you choose to close your loan account before the loan expires, some lenders will impose a fine. All these factors play an essential role in selecting a Car Loan. View offers and discounts-- During Indian festivals, such as Dussehra and Deepavali, most lenders offer concessions and discounts. In other cases, car dealers or lenders will offer discounts and benefits. Sometimes there is a 0% financing plan. Look for these offers to save a few cents.

Consider the total cost of owning a vehicle- The total cost of ownership is an important factor when buying a car. But many people do not see the big picture. To calculate the total cost of owning a vehicle, you need to consider the applicable fees, the types of expenses, interest rates, prepayments, and the total amount you will pay to the bank from the payment date. Loans until the debt is paid off, fuel costs, car insurance premiums, taxes paid, and many other expenses.

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