While managing a myriad of rising costs in repayments and purchases each month, the logical approach to a new car purchase is to analyse what results a car loan EMI calculator comes up with.
When buying a vehicle, a car loan is the easiest way to help meet our dreams. Paying for a vehicle in entirety in cash isn’t possible, and neither acceptable at dealerships. In keeping up with the lifestyle, and new purchases, the financial burden should never bog down a customer. Talking to the customer relationship personnel at the dealership helps one understand what the impending financial commitment would look like.
Once you’ve decided on the exact make and model, and gone through the selection process of which colour your new car will be and what trim you’re interested in, it’s easy to realise for the first time what is the exact amount of money you’ll need to buy the car of your dreams. The next step is to understand clearly, what the down payment amounts to, and the term period for your EMIs the cost of payment as well as the overall tenure decided.
When comparing available car loans, it’s best to set sight on high-value loans, i.e., from Rs.1,00,000 up to 85% funding on on-road price for a tenure of up to 7 years. Shopping for interest rates is essential and finding an attractive one in the vicinity of 11% works just fine. It’s important that the car loan EMI calculator is easy to use, and accurate.
The value is to be calculated on ex-showroom price of the vehicle. A Car Loan EMI Calculator helps work out your monthly outgo. Customers can benefit from a high LTV ratio. Depending on the car you buy, on select models, up to 95% of the ex-showroom price can be acquired as the car loan value. It’s sensible to shop for special schemes and benefits for long-term savings. Car loan amounts sanctioned vary depending upon a range of factors. They include requirement and eligibility, income, and repayment capacity. Applicants needn’t provide a collateral as the vehicle itself acts as collateral and is hypothecated to the bank through the loan period. One can also make a part-prepayment towards the loan if you find yourself in a position to do so.
Banking surrogate schemes are available, and useful. A bank Relationship Manager can inform you about special benefits for Priority Banking, Wealth Banking and Private Banking customers. Keeping an eye on the processing fees is essential as no one is happy paying a huge chunk only for the deal to go through. An auto loan is largely reserved for a range of passenger cars, multi-utility vehicles and sports-utility vehicles available in India when bought for personal use.
Choose your car loan tenure from anywhere between 1 year to 7 years. A typical flexible tenure loan ranges between a period of 12 to 60 months. For car loan applicants, the calculations vary depending on your employment status, i.e., Self-Employed Individuals, Proprietorships, HUF, Partnership Firms, Limited Liability Partnership Firms, Trusts, Societies and Companies, and salaried individuals.
Once a car loan application is made with all the necessary documentation, processing/approval of application is undertaken. Documentation is screened and verified. Once the loan is sanctioned, the applicants are informed, and the loan is disbursed. Loan applications are essentially approved within 30 working days after thorough scrutiny.
Once you’ve used a car loan EMI calculator to determine all costs involved, there is a list of documents that you will be required to furnish along with all the applications. Documents required are listed here:
- Age proof. ID proof
- Application form
- Residence proof
- Income proof
- Bank statement
- Signature verification proof
- Pro-forma Invoice or Rate List
All of the above is subject to terms and conditions.