Terms And Conditions Of A Car Loan.

If you have visited this blog, you are most likely thinking of purchasing a car. You can apply for a car loan through a simple, fast and paperless process by visiting the bank website. When you visit the site, you will come across terms such as EMI, rate of interest and the car loan EMI calculator, which will help you in calculating the EMI of the car loan.

The conditions or procedures of getting this credit facility differ in each bank. Let me inform you of the primary process. The first step is choosing and finalizing the make and model of the car you want to purchase, next you check if you are eligible for the car loan by visiting the bank website. Then, comes deciding the amount of this advance that you want, it will depend on the loan tenure, how much you can pay now, and the interest rate. This can be done by using the EMI calculator that is available for free on bank websites. Once you decide on these three things are the make and model of the car, Your eligibility for the loan by checking the EMI calculator, and also checking your CIBIL score (which can be viewed on the bank websites) If you are not eligible there are some banks/financial institutions in the market that will help you out (you can call and email us for more information by checking our website)

The car loan EMI consists of the amount payable, processing fee, and the interest charged, the EMI of the loan depends on the tenure of the advance, the longer the tenure, the lower is the EMI; the shorter the tenure, the higher is the EMI. Apart from the car loan, rate of interest, and processing fee, some lenders might also apply a premium to the rate at which you are borrowing. You can apply for a car loan by submitting your Age, Income, and Identity proof. The time is taken to approve the loan changes from bank to bank. Once approved the amount will be transferred to your account and you may book your car!

There are various banks and lending institutions that provide you with a car loan. One of them is the HDFC bank, and they offer features like: 

1. Custom-fit car loan:  

• It has flexible repayment. 
• Zero foreclosure charges*.
• Top-up loan after nine months - Pre-existing car loan customers can get a top-up with no documentation.

2. Zip drive: This is a feature applicable only for HDFC car loan customers in which the car loan amount is sent directly to the car dealers through net banking.

Conclusion: The above information will help you prepare before going in to avail yourself for a car loan, as said earlier make sure you are eligible, i.e. your credit score should be at least 750, All of your previous loans EMI’s if any should be paid on time, you should have the above documents on hand. And if you have any other queries, we at Dialabank are always here to help you.  

Also read:- Compound Interest Waiver In A Car Loan