Monday, January 11, 2021

The Smart Way to Get a Car Loan with Low EMI


Owning a car is very easy with a car loan. With car loan access, you can buy your dream car whenever you want and if EMI is in your budget, it is much better. Now, how can you reduce EMI loans? It is possible to reduce the EMI on your car loan before applying for it or even during the loan period. Here are some ways in which you can reduce the risk of EMI in your car loan.

10 Wise Tips for Getting Low EMI Car Loans

Below are some tips on how to get the lowest car loan:

  • Discuss the price of the car: The first and most important thing you should do is try to reduce the cost of the car. It is always a good idea to look at the best options to try different lenders. If you have tried it, you can also get accessories for free and like free leather seat covers or rust paint, engine lamination. It is not very expensive for retailers and even those who enter the car service business to offer these supplements. You should also avoid buying any car insurance from a leader as you can get them at the lowest price online.

  • Research and shop around: Often the most overlooked advice - it's usually a good idea to get prices from several lenders and car dealers. This way, you know who is offering the best purchase. Then you can select one amongst all available according to what suits you best.

  • Negotiate a good agreement: Do not settle for less by the initial financial agreement you are given. Negotiations can lead to better offers, such as reduced interest rates, pre-payment closure closures, etc., leading to lower EMIs.

  • Check your credit score: It is important to get a copy of your credit report well in advance of applying for a car loan to check your credit score and reduce the risk of rejection. If you apply for a lower loan, your application may be rejected which will affect your future car loan efforts. Or you may be given an undesirable interest rate because of your poor credit record.

  • Focus on improving your credit score of at least 750, before applying: Lenders usually look at 750 or more credit points to approve a loan. Getting high marks means you can get more attractive goals that will make your EMI burden easier. Improving your score can take an average of 4 to 12 months, depending on the severity of your debt. Also, check your credit report for any errors that drag your score unnecessarily. It’s important to quickly file a complaint if you find errors and correct them.

  • Read the fine print carefully: Check the fine print carefully to find the hidden causes and ask for a full discount. Various additional amounts can be calculated in the thousands of rupees. Negotiate the best price and calculate the impact on your total EMI costs.

  • Look for NBFCs in car manufacturing companies: An NBFC from a car or a car manufacturer may offer the best deals on loans that can help you save money. However, it may be best to let them give you special offers first and then tell them you want to borrow money for the car.

  • Make big Down Payments to cut EMIs: To reduce the burden of EMI, the borrowers can make large down payments. If possible, pay half the cost of the car by paying down as it will reduce the EMI burden.

  • Pre close your loan: Your salary may be increased if you are promoted. So you can use the increase to your advantage by paying in advance for all or part of the loan as it will reduce the principal amount and duration of stay. This will ultimately reduce your Yes Bank car loan interest rate.

  • Seek out a lender with low or no processing costs: When approaching a lender to obtain a car loan, it is important to inquire about operating costs. This might not reduce the EMI but will reduce the cost of your car ownership.

Also Read This-How does car loan tenure impact the EMIs


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