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Me must be cautious enough and make adequate research and comparison before hand to avoid inconveniences later on or choose plans that cost you to pay more than it should actually be.
First step before applying for car loan would be finalizing your car and what its estimated budget would be. Look for the best available car loan and compare it with other car loan bank.
Next after application is done, your application might be rejected even on meeting car loan eligibility criteria, it may be because of your bad credit history or you are offered loan at high interest rate. Credit history is one such important factor that is taken in account by every bank and banks have different standard of judging credit history and it is thus advised to clear any debts you have before you apply for car loan.
Interest depends upon flat rate and reducing balance method, in flat rate of interest, principal amount on the basis of which interest is calculated remains same whereas reducing balance method means reducing the paid up principal amount from remaining loan amount and interest paid is calculated on outstanding principal balance and repayment is done through equated monthly installment calculated by dividing loan amount by tenure.
Basically guarantor is not required for car loan, but it may be incase if credit history is not so good. A Banks charge processing fee for evaluation and approval of loan application and it is about 2-4 % of loan amount. Pre payment is possible with penalty charge however part payment is not allowed.
Once, you plan for car loan keeping the above car loan must read in mind, you won’t face any difficulty and would easily be able to pay off the loan back.
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