In today’s fast paced life, getting a car has now become a necessity. It provides you the flexibility of travelling anywhere without any problem. The availability of various car loan options in India has made it easy to buy a car. There are various options available such as HDFC Bank new car loan, SBI car loan, PNB car loan, etc., therefore, it is necessary to carefully compare all available options before picking the one option. So, if you are also thinking to own a car but do not know anything about it then don’t worry as we are here to give you detailed information about features of a car loan-
What are the key features of a car loan?
• The car loan tenure can vary from 1 year to 7 years.
• Lending institutions charge processing fee, which is known as a onetime fee for processing the applicant’s application and for doing varied other legal paperwork. Usually, it varies between 2 per cent-4 per cent.
• If a borrower will make prepayment of the loan amount then banks can also ask you to make pre-payment of the loan.
• Usually, a guarantor is not needed but if the income of a person falls short of the credit criteria, then the lender can ask you for a guarantor.
• Usually, banks provide preferential treatment to their current customers. Therefore, if you are having a saving or a current account with the bank then you can get the car loan at easy rate of interest.
