Car Loan Tips: Planning a loan for a new car on Diwali? Banks and NBFC offers attractive offers in the festive season, which can be overwhelmed to take a hurry. Let’s know 5 important things, which is very important to know before taking a car loan.
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Compare interest rate
The interest rate of each bank and NBFC is different. People signs quickly by watching ‘low EMI’ in Diwali offers, but in reality the total interest can be more. Therefore, calculate the interest rate and total payment of at least 3–4 institutions. This will help you take the right decision and save money in a long time.
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How much to pay, decide carefully
The more down payment, the less EMI will be. But if your budget is weak, more down payment can put pressure on your savings. Decide down payment only by seeing your monthly expenses and savings. Do not take pressure of early booking in festive offers.
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EMI calculation and income ratio
According to experts, EMI should not exceed 30–35% of your monthly income. Taking more EMI will cause problems in the remaining expenses. Therefore, by calculating the online EMI calculator in advance, see whether the EMI is correct according to your income. This small preparation can protect against large financial pressure.
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Understand loan period and total cost
The long loan reduces period EMI, but increases the total interest. EMI will be slightly higher in small loan period but the total cost will be low. Keep both your budget and total cost in mind while fixing the loan period. This is the right smart decision.
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