Finance

Best Auto Loan At The Lowest EMI

Best Auto Loan At The Lowest EMI- Having your vehicle gives you an exhilarating sense of happiness and freedom. Owing a smart and trendy vehicle is a craze among youths and automobile lovers.

You can purchase your dream car or two-wheeler by availing an auto loan from banks and NBFC at desirable terms.

Tips to avail an auto loan with lowest EMI

Here are some tips for you to select the auto loan that is best for you and comes with the lowest EMI.

Search for the Best

The key is to research the available lenders and their offers before finalizing the one. It is the most basic and most ignored tip while taking an auto loan. This research will allow you to compare different loan offers and time to select the one that best suits you.

Negotiate with the lender

Smart negotiation always yields good results. Do not settle for what the lender is offering you; instead negotiate for better offers, like an increased tenure, lower interest rate, a no-penalty pre-closure, etc. All these will lead to lower EMIs.

Check your eligibility and creditworthiness.

It is advisable if you check your credit score and eligibility for an auto loan before you make an application.

Credit score can decide chances of approval or rejection of your loan application.

A healthy CIBIL score puts you in the driving seat and allows you to dictate your terms with the lender and can reduce the EMI for the loan.

It will also give you a chance to improve your credit score in case it does not look healthy.

Ignore Pre Approved Auto or Two-wheeler Loans

Many dealers offer attractive auto loan offer if you approach them for a test drive or any other related inquiry.

Clients generally take up these offers to save time and the tiresome process of availing a loan from a bank or NBFC on their own.

But the fact is that the auto dealers have tie-ups with the financial institutes and get a commission on the loans they sell to the customers.

Hence, these two wheeler finance or auto loan come with a higher rate of interest, and there is no chance of any negotiation.

Choose your vehicle make and model wisely.

You have the full freedom to choose the car or the two-wheeler of your choice, but do you know that your choice can affect the EMI of your auto loan?

Well, this is a fact.

The rate of interest on auto loans, especially car loans, differs for different makes and models. It is valid for both the bank and Non-Banking Financial Company.

The vehicles that belong to the premium category or are more in demand in market have a lower rate of interest while the one that is from an old lot or is less in the market has a higher rate of interest.

Hence it is advisable to choose your dream car wisely if you want an auto loan with lowest EMI.

Select the right time for your auto Loan

Timing is important not only is hitting a ball in the game of cricket or catching a train. It is also essential in planning your auto loan application.

Due to ever-growing competition in the auto loan sector, the lenders come up with lucrative discounts and offers.

Lenders have targets to achieve and generally offer good deals at the month-end if they are lagging in achieving them.

The same is right in the times of festival or vacations. Hence, plan your purchase and loan application at the right time to avail reduced interest rates, relaxation in the loan terms or waiver of loan processing charges.

Higher Down Payment lowers the EMI.

You must pay a higher down payment, if you can afford it, to reduce the loan amount and therefore, the EMI.

You cannot avail a cheaper loan with a lower down payment. Less loan amount means lower EMI if you select a long tenure for loan repayment.

A good planning, a little bit of research and consideration to these tips can help you in the selection of an auto loan that comes with the lowest EMI and does not make a hole or a dent in your pocket.

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