Looking out for special offers when taking an auto loan

As has been established, there are various means to getting the adequate financing you need for the purchase of your vehicle. But how do you choose the right lender for your capital requirement? Does your bank account, your age or your corporate status earn you any special privileges when it comes to getting a car loan?

Well, yes. Factors such as income level, age of the applicant and credit history largely influence or rather are the basis of your eligibility for being granted an auto loan. While most banks try and offer attractive rates of interest to lower your long-term expenditure on the purchase of an automobile, the rates typically vary depending on the length of your loan maturity period. With some institutions flexible loan repayment tenures range from 12 to 60 months. Others could be willing to offer even longer timelines for your repayment.

With traditional moneylenders things are always open to negotiation, but the security and accountability of the transaction is always questionable. Such methods though primitive continue to work on trust and the confidence of the borrower for the lender.

There are typically different eligibility criteria for salaried and self-employed individuals when applying for a car loan from any finance company. Salaried individuals for example require just two years of continuous employment to be eligible while self-employed individuals need a minimum of three years for being fit to avail the same benefits.

Special schemes are also handed out to priority bank account holders like a 100 per cent waiver of loan processing fees, and a waiver of income documents and bank statements that helps the application cut down his transaction time and save a little extra cash owning to his existing association with the private lender. 

Auto Loans are especially worth considering during the festive season, when rates of interest are lowered by banks to encourage investment by customers. Easing the car loan interest lowers the EMI that customers are required to pay and hence its common to see a large number of car buyers coming forward during dusshera, diwali or christmas for thier new car purchases and making the most of the festive discounts on auto loans. Added benefits like up to 85% finance on the on-road price of your car (no advance EMI) and free accident insurance are also common during this time.