Earlier, buying a new car was expensive. It was not affordable for everyone. But now, with the change of time, buying a new car is not so tough. Now people are smart and well know about the benefits of car loan options. Moreover, many financial banks and agencies give the availability of car loans to car buyers and make it easier for them to make good decisions. If you want a car loan, there are a few important things you must consider before taking a car loan.
Further, you get the things you must look at before opting for a car loan.
CIBIL score
Looking at your CIBIL score before taking a car loan is important. This is the important aspect based on your score, and the lender will decide on the interest rate and the loan eligibility. If you have a high CIBIL rating, you get the car loan at low-interest rates, and a poor CIBIL score will impose a high-interest rate on the car loan. But it does not mean you are not eligible to take the car loan if your CIBIL score is below the actual limit.
Low-interest rate
The next crucial thing is to look at the low-interest rate on a car loan as it decides the EMI on which the borrower has to repay the loan amount. So it is suggested to check the interest rate of different banks and compare before reaching any decision. Make sure to evaluate the EMI by using the car loan EMI calculator. Also, remember that the little difference in interest rate leads to a great difference in EMI, so do not avoid the many little differences.
EMI payments
It is important to know the assessment and capability of paying the EMI on a car loan on time without being caught in any penalty charges. Calculate the EMI by EMI calculator and then decide whether you afford to repay the EMI or not. If you think you can pay the EMI imposed on a car loan before taking a plunge, you should take the car loan. Else not.
Acceleration clause
It is one of the important things that you should look for while opting for a car loan. It implies that the loan borrower must pay the whole amount of the loan immediately under circumstances when they fault on full payments or EMI.
The acceleration clause can also be activated when the loan borrower sells their car without informing the lender. Once the lender sends you notice to accelerate the car loan, you have to pay all the loan amount.
Conclusion
This article will deliver information on the factors you should consider before making the final call to a car loan. If you want to opt for a car loan, read all the factors above and understand what they say. Remember that you have no right to sell your car without informing the lender if you buy this car by using the car loan.
