5 Things to Know About Car Loan

Getting a car loan has become easier. There are banks that offer car loans and along with lower interest rates and many other benefits. In terms of affordability, it has become quite easy to get a car loan and pay EMIs without experiencing any financial crisis. 

In this article, we will be discussing the eligibility criteria, EMI calculator, process of applying for the loan, and how the candidate can claim car loan tax benefits. 

1. Eligibility criteria for a car loan
   There are standard car loan eligibility criteria associated with car loans. While getting a car loan the candidate needs to have a proper understanding regarding the same. The candidate is only eligible when the income is above Rs.25000. This reflects that the candidate can repay the loan amount along with the interest rate within the tenure. The candidate’s credit score should be 750+. This means that the candidate’s financial history is well maintained and has thrown a good impression on the lenders. The tenure should be not more than 7 years.
   
2. EMI Calculator
   
   EMI calculator is highly essential when it comes to getting any type of loan. It is a smart tool to calculate the monthly amount of installments to the bank. It is a slider where a candidate can enter the values as per the Principle amount, Time Duration, and Rate of Interest. The candidate can make use of the IDFC bank car loan calculator to find out how much EMI the candidate needs to pay every month and figure out the budget in advance. 
   
3. Processing Apply
   
   Car loans can be availed through various sources. The candidate can directly go to the bank branch and make an inquiry or apply online. The bank needs to select and collect documents. It is initiated with the loan process that includes checking your CIBIL score, the valuable asset of the vehicle, eligibility calculation. It gives a decision on your loan based on the evaluation results.
   
   
4. Claim Car Loan Tax Benefit
   
   Claiming car loan tax benefits is an easy task. It can be done by using the car for legitimate business purposes. For claiming the benefit and filing a tax return the candidate should mention the loan interest paid in a year in the business expenses column. The candidate can easily get in touch with your loan provider to get an interest certificate. This can help you understand the exact interest paid in a year.
   
   
5. Select a lender for a Car loan
   
   The tax benefit on a car loan is available to anyone. The candidate should be a self-employed professional or have a business when the loan is taken for a vehicle. The candidate should be a salaried employee and there are still other car loan benefits that can avail based on the lender you select. 

For instance, the banks are now offering a pre-approved car loan to selected customers. Loans are availed up to 100% of the on-road price of the car. It should be a part-prepayment and full pre-payment facility along with zero processing fee. While applying for a car loan, one should take all the existing benefits associated with the loan. 

We hope that we have presented a good amount of information about the procedure and tax filings regarding car loans. If you are looking forward to getting a car loan, we would suggest you make good research and select genuine banks out of it. If you have any doubts or questions on the car loan and want to explore some new learnings on the banking sector, we request you to drop your queries in the comment section and we will be coming after you with a productive solution in the least possible time.

Also read this: Please tell me how can I buy a Car Loan with low income