Car loans which act as a source to finance a vehicle purchase in India are generally widespread. While there are different misconceptions or myths about automobile loans which may prove tricky to deal with, that is, for those who wish to borrow.
Through this blog post, we are going to bust five lies that car loans are known for in India and get clarity about the issue which is misunderstood.
Myth 1: Car Loans Are Only for New Cars
Most have the misconception that a car loan can only be used for purchasing brand-new cars. This is not true. Moreover, the top banks and lending outlets in India give loans of funds for new and second hand car purchases. It’s not mandatory for you to spend a fortune or buy a brand new car to avail the loan services.
The good news is that you don’t have to spend a lot of money or get a flashy new car to be eligible for these loans. From buying a brand new shiny model or a dependable pre-owned car, car loans are ready to help finance your deal. Flexible financing options present the most intriguing possibility for prospecting car buyers as they are no longer bound to buy only one brand new car in order to explore a wider range of vehicles.
By applying for a car loan that fits into your budget, and understands your needs, you can go ahead and confidently purchase your car of choice, as help is always available whether it’s for a new or used car.
Myth 2: Car Loans Have Often Borrowers with High Rate of Interest
The truth is that the interest rates on car loans may vary depending on different variables. Variables such as congruent with the loaner, amount of the loan and tenure, may affect it. Not only do car loans need high interest rates, but they also do not always have a high interest rate.
This competition between the existing banks and the NBFCs bred as a result of their mushrooming number results in ready availability of car financing to many people. The car loans can be accessed at much lowered interest rates.
By comparing interest rates between financial institutions and choosing the one that suits them best. Through choosing a lender offering a good interest rate by comparing others, you can obtain a car loan.
Myth 3: Car Loans Require a Large Down Payment
The assumption that getting a car loan demands a burnt sacrifice deals with owning a car loan. But, on the one hand, a bigger down payment would fit a bigger loan and at the end of it there will be smaller monthly installments (EMI’s). Nevertheless, these finances are easy to reach for auto loans nowadays and sometimes banks do not even ask for any commission down payment.
Newcomers and housewives who usually have insufficient capital for saving required this to the maximum. Also, they should furnish the authorities with their several details, like their names, age, driver’s licenses number and home addresses.
While large down payment keep some people out of car ownership, the lenders enabled nowadays the do away with the down payment requirement. In this way, lower-income families and those from the middle-class grow to be able to enter into automobile ownership without financial strain.
Myth 4: Car Loans Have Lengthy Approval Processes
A widespread misconception that applying for an auto loan is an exhausting and time-consuming experience is no longer current. Thanks to the technology progress and the digital banking, the loan approval process becomes faster and it becomes much more simpler. Online creditors distribute an instant approval of auto loans in a more effective process, reducing the waiting period tremendously. This significantly faster operation is of benefit to borrowers by saving time in the auto buying process and providing a faster entry to financing options.
Indeed, digitalization did away with most of the paperwork requirements, speeding up the application process and eliminating the chances of delays or the mistakes to a minimum. Through adopting technological innovations, lenders are improving the customer experience and evolving the car financing process to enable more accessibility and convenience for customers seeking to buy their dream car.
Myth 5: Car Loans Are Only for Individuals with High Incomes
Invent the myth that car loans are only available for the high-income people. When lenders assess your application you as an individual’s credit history, stability at work, and debt to income ratio get to factorize. Lending is not only for wealthy people.
Even individuals that are in the moderate income range can get credit from the lender. The lenders only need to feel comfortable doing business with them, and they must have a clean credit record. The inclusive nature of this design guarantees that car ownership is not a privilege of the wealthy but can be part of a lifestyle for the majority of the people. Towards the attainment of this objective, lenders are now taking into account a wide range of factors beyond income. This move allows car financing to be democratic to the extent that people from varied socioeconomic backgrounds can become car owners.
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Conclusion
To sum up, car loans are a working alternative for you to get a new or a used car, the way it is customized is your choice. By dismissing these popular myths we want to bring down the fog covering the important issues of car financing. And as a result of it we expect to see more and more carefully and purposefully planned car financing activities.
To loan your own car of dreams, contact our agents today. You can now avail of the best deals and get the pricing on your car now, with Loanz360. Loanz360 also offers several other loan types, including, personal, home, construction, to educational, NRI, and more!
With 10+ years of expertise in success-driven financial assistance, we aim to make the best online loans available and accessible to our clients of any background by bringing together all the leading financiers on a single platform willing to work with their customers of any profile at affordable rates.
