Things to keep in mind while applying for a car loan

It is the dream of every man to own a car of his own. The policies and facilities provided the banks these days in terms of loans can fulfill the dreams of any man of owning a car. Be it a brand new car or a pre-used car, banks now provides car loans for both. There are certain clauses and basic facts regarding the car loans that you should prior to your applying for a loan. This will help you in getting your loan application being approved.

If you are buying a new car, then you will have to pay part of the value of the car on your own. The bank doesn’t give loan for the whole price of the new car. The percentage of loan provided by the banks varies from bank to bank. So it is advisable that you take information from a number of banks regarding their respective policies about the car loans. The interest rates also vary from bank to bank and if you do a well research you can grab a real good deal.

The system of approving car loan in case of pre used cars is not the same as in case of new car. The bank will send evaluators or inspectors who will inspect the car properly and will fix a valuation for it. Depending on the valuation of the car, the loan amount approved by the bank will be fixed. While making loan application, you have to provide your personal details like your income, savings, etc. Always furnish the true information otherwise if any information is found to be wrong or misleading during the verification, then your loan application will be straightway rejected. Various finance schemes are also available with the car showrooms also these days to decrease your efforts.