A car loan can be taken for by both the salaried or a freelance person. When you go to a lender to opt for a four-wheeler loan, the lender easily divides the overall loan amount into a down payment and a loan amount fixed with an appreciable amount of car loan interest rate. However, try to take 30% of the overall loan amount as a down payment and consider the rest of the amount as a loan with an ideal interest rate.
Process of application of a four-wheeler loan
Due to globalization in the banking sector, nowadays opting for a loan has become easier for the banks/NBFCs. Try to follow this process to get your loan sanctioned easily:
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Complete the form:- This is the initial step in the loan application procedure, the consumer has to fill an application form provided by the side of the financing institution. In the application form, you have to fill your details with some more credentials.
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Document Verification:- When you have completed your application form then the bank is going to ask you to attach your intimate as well as your economic documents. In such type of loan, the four-wheeler is considered as collateral.
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Loan sanctioned:- This is the third stage where the financial institution does a thorough evaluation of the documents provided by the side of the borrower. If all the documents are up to the mark, the lender will approve the four-wheeler loan, otherwise, try next time.
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Agreement stage:- This is the last stage where the borrower and the bank have to sign a formal agreement to get an auto loan approved. Generally, loans like Indian Overseas Bank car loan has a very quick loan disbursal. However, after this, the borrower has got the loan amount to buy a vehicle for themselves.
Benefits of such loans:-
In India, there are several issues regarding the purchase of a four-wheeler for yourself. Sometimes, this huge amount of money disturbs your budget. When you opt for an expensive purchase through cash, there are possibilities that you will be under the income tax department’s radar. One of the greatest perks of opting for such a loan is that these loans require a guarantor and here your four-wheeler is considered as collateral. Not like other loans where you have to mortgage your land or some expensive asset. You can opt for a loan for both, a first-hand car or a second-hand one.
Now you can quickly achieve your desire of purchasing a car. A loan provides numerous benefits on the four-wheeler loan as they give relaxation in loan repayment tenure as well as a good interest on a vehicle loan. Always remember to purchase an automobile when it is your necessity, not your temptation.
