The interest rate on the loan is determined by factors such as source of income, gender (male and female) and credit. If you have a lot of money but don’t have good credit, your interest rate may be higher. Banks obtain the credit reports of car loan applicants based on their creditworthiness.
Compare loan offers from different banks
Banks accept loan applications and fix their interest rates based on the value of their funds and the credit history of borrowers. This allows the interest rate for the same type of loan to vary from bank to bank. Therefore, it is important to compare loans from different banks to get the best loan.
Check your EMI paying ability by deducting all your monthly expenses, such as household expenses, current EMIs, insurance premiums and SIP contributions for important financial purposes, from your monthly income. Remember that most banks prefer your total EMI to be within 40% of your monthly income.
Don’t Ignore Maintenance Fees
Your car loan payments can go up to Rs 10,000. Although many banks reduce or waive fees during the holiday season, make sure you don’t get charged higher interest or any other fees for withdrawals or withdrawals.
receivables or prepaid
Prepaying your car loan can help lower your interest rate. However, most banks charge a prepayment fee for auto loans against fixed-rate loans, which can be as high as 6% of your loan repayments. Some banks also limit the amount of prepayments allowed within a year or throughout the period. So, when choosing your bank, choose the one that offers you the least hassle and charges the lowest prepayment fees.