The festive season is nearing and the automobile market has already started buzzing. New car models are being launched and financing companies have started rolling out new offers for buyers. The automobile industry is growing at a rapid pace and the automobile financing sector is providing a fresh impetus to the industry by providing quick and easy loans to prospective buyers. However, it is not always easy to get trouble-free car loans. Sometimes, banks may make it tough for the borrower to get a loan sanctioned. We will discuss some of the simplest ways to get trouble-free car loans so that you can drive your dream car home.
The bank where you have salary account
Salaried professionals have the best option to get the best car loan sanctioned by the bank where they have their salary account. These applicants are considered as the safest buyers as the bank already has a financial relationship with the applicant. Depending on your financial history, the bank offers you personalized loan offers from time to time. You can apply for it even by the mobile app and the documentation required in this case is minimal. The loan also gets sanctioned instantly and you can zoom off in your car within a few minutes.
The best thing is that the rate of interest offered by the bank is negotiable and you can visit the bank and negotiate the interest rate with the bank if you have a very good credit score. Banks also prefer these applicants as the chances of NPA of such borrowers are very less.
Financing arranged by the Dealer
It has been noticed that taking loans involve a lot of documentation and paperwork. An applicant has to run here and there every day to get the loan approved. In order to make the process of financing easier for buyers, car dealers tie-up with some banks or NBFCs to provide car loans to buyers instantly and with the least paperwork possible.
The buyer simply needs to visit the showroom and select his car model. He is required to provide basic documents like Aadhaar and PAN and he can get the loan instantly on the spot. The loan officer checks the credit score of the buyer and his purchasing power (factors like salary, EMIs, etc. are considered). The best thing is that you can negotiate for the lower interest rate on the spot and if you are eligible, you will get the loan at a lower rate.
The rate of interest, in this case, is highest. But the processing time and documentation are minimal. Also, people with low credit score have the best chance to get the loan, which otherwise, would be very difficult if applied in a bank.
Other Banks and NBFCs
In case you are self-employed or do not want to apply for a loan in the bank where you have an account, you can shop around and negotiate for the low-interest rate. If you have an excellent credit score, you can negotiate with the bank. You have the option to visit an aggregator website and compare car loans offered by various banks on their platform. Financial institutions offer preferential rates for customers of these aggregators which can sometimes be a very good deal. The best thing, in this case, is that you get to see all details at a place and you can easily select the best loan option.
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