Things you should know before applying for an online car loan

By- Kritika G

If not the flying car of the Weasley's, if not the spectacular convertible cars of James Bond – the heart still yearns for a car of one's own – even if it's a normal, regular, run-off-the-mill sedan. From fiction to reality, cars have been a symbol of class, curiosity and convenience. However, the dream of owning a car is not just a fantasy as one can easily apply for an online car loan.

Applying for an online car loan is one of the most comfortable ways of buying a car. Nevertheless, the ease of a quick car loan comes with a few pointers to know beforehand.

Why? – the most obvious question pops up.

Well, before you zoom across catalogues or take your peers' suggestions of the latest car models, you must realize that buying a car is a considerable leap of investment. You can avail a quick car loan but bear in mind the EMIs you've to provide each month.

Follow NewsGram on Quora Space to get answers to all your questions.

To ensure that your reason for happiness doesn't turn into a liability, take heed of the following aspects before applying for an online car loan:

1.Getting your credit report is a must

CIBIL or the Credit Information Bureau (India) Limited is an organization that is responsible for collecting information about a person's loan and credit cards and keeping a solid database on it. The minimum CIBIL score of 750 and above is considered favourable by most of the lenders like banks and other financial institutions alike to sanction a car loan.

Why is it important?

Only if you have the threshold score, you'll be eligible to apply for a quick car loan. Furthermore, the rate of interest is based on this report to a certain extent.

In retrospect, even if you have a high income but a poor credit score, rate of interest for your loan may still be high. It is ideal that an applicant for online car loan must look up his/her credit score at regular intervals.

2. Scrutinise & compare deals

Now that you know your creditworthiness, chalk out an itinerary out of your daily schedule and look up deals on car loans – which organization provides you with the best value for money? Where can you enjoy a quick car loan with fast approval process?

One should always check over and over again before starting the preliminaries.

What should you look out for?

Comparing rates of interests. It varies from lender to lender.

Now you don't have to scout the world for deals and mammoth savings offers that work out for you. You can apply for an online car loan from even your smartphone! Browsing the internet can reveal some of the best deals on online car loans.

3. 'EM'I correct?

Always stay ahead of the EMI segmentation.

To understand and choose an immaculate EMI plan for your online car loan, to know whether it's the correct one for you, mull over for a few minutes on these:

●The EMI should not strip you off your entire month's salary

●You should have enough left to pay other bills

The calculation is inversely proportional. The longer the tenure period, the lower the EMI amount. Similarly, for shorter tenure periods, the EMI becomes automatically higher.

Instead of shelling out a hefty amount each month, it's always better to opt for lower EMI for a longer period. However, choosing the plan is completely up to your discretion.

Check out some standardised EMI plans if you're looking for a quick car loan. Check for the possibility of an alternative payment method. If you have the means, you can forward a chunk of money as a down payment. The interest rate and tenure will lower subsequently.

So weigh out the options and ask yourself repeatedly, "Am I choosing the correct EMI?" till you choose the best.

If you're applying for an online car loan, you'll have to submit several documents.Van Tay Media/ Unsplash

4. Keep your dossier of documents ready

In order to get a quick car loan, you need to keep your set of documents ready so that the lender can verify your details, approve your loan request and proceed with the next phase of action.

If you're applying for an online car loan, you'll have to submit a:

●proof of identity

●proof of address

●proof of age

●proof of income

●bank statement

Basically, the aforementioned are the primary set of documents required. The only point of distinction lies in the vocation – whether the applicant is salaried or self-employed. For salaried professionals, salary slips are essential. Whereas for self-employed individuals, additional documents such as income tax reports are required to be submitted.

*****************************************

With the society's overarching desire for a chic, comfortable lifestyle, the market has opened its floodgates to reveal a wide range of car loan products.

Moreover, with budget-friendly options and perpetual offers made by banks and other registered lending institutions, the Indian middle-class aspiration can be realised with a car loan. Getting a car loan has become simpler, thanks to the digital boom. An online car loan is a few clicks away. Nevertheless, one should always be proactive in devising a proper strategy to repay without feeling the strain of monthly payments. Bearing these few pointers in mind would definitely help you chalk out your steps towards your dream car and help you secure a quick car loan.

(Disclaimer: This is a sponsored article and includes some commercial links.)