What are the procedures involved when you by car by loan?

Buying a car is like a dream coming true for many people. Next to owning a house, owning a car is a luxurious asset.  There are many features that make us feel more comfortable in using our own car. We can go for a family outing without checking for the ticket availabilities. We can schedule the timing of the tour. Even if the tour dint starts as per our timing there is no problem at all. It is our car, we can start at any time.

How simple it is to buy a car?

Since it requires a huge amount to buy a car, many people find difficult to get them one. But this is not so in recent days. Because we are getting flexible loans for buying a car. People can easily get finance. Finance will be provided for both new cars as well as pre-owned cars. The interest rates alone may differ for both. We need to arrange for a down payment which may be 5 t 7 lakhs. Even if you find difficult to arrange this down payment amount there are companies who can provide no deposit car finance. So getting a car is very easier nowadays.

What eligibility is required?

There are some eligibility criteria for getting a loan. We need to be a major (above 18 yrs old). Also, they will have a slab for a minimum salary requirement. Also, we need to provide some documents like driving license, passport for identity proof. Also voter id for address proof,  then our passport size photos.We may also need to provide our 6 months salary slip or our bank statement.

Hypothecation

If you have brought a car by loan then definitely your car will be hypothecated to the loan lender. When we fail to repay our loan, he has the right to seize our vehicle at any time. once we clear the loan we need to change the owner’s name in the papers. Also, we need to check whether our name is entered in insurance documents. We can change our name by visiting our nearby RTO office. But we need to provide a NOC to get the name changed.

Repayment process

The loan lenders provide some flexibility in the period of repayment.  We can choose the repayment period according to our own convenience. A processing fee will be charged at the time of applying for a loan. Moreover getting a car loan is much easier than comparing it to a home loan. Here car loan requires less documentation and also doesn’t require any additional collateral. The process is very simple and easy.

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