Everyone has a goal to buy a car for all the comfort, ease, and memories that it will bestow them. From running away from the cold or heat to those cherished long drives, a car is what everyone dreams of purchasing. But not everyone is able to afford to fulfill this dream, so they think of taking up a car loan. This article covers up common questions which are on everyone’s mind when it comes to car loans.
- What is the loan amount I can receive?
Most of the banks or the financial institutions can lend you 80 percent to 90 percent of the showroom price of the car. The remaining amount includes the rest of the car price, road tax registration which are to be covered by the borrower.
- What is the loan period or tenure?
Most of the lenders provide tenure of 1 to 5 years but in some specific case, the tenure is extendable up to 7 years. So, it is best to pay off the debt as soon as possible, because as the time goes by, the depreciation of the car rises and you will end up paying more than the cost of the car. But if you are looking for reducing the EMI and fast installment loans, go for the longer tenure.
- What are the interest rate types available for a car loan?
There are 2 kinds of interest rates available. They are fixed and floating rate. In the former, the EMI rate is fixed, which you will have to pay till the duration of the loan. Along with the floating rate, the interest rate also changes according to the economic situation. No matter if the interest rate is the same, it can also vary according to your credit score, salary, the loan amount you need, and the tenure.
- What is the processing time for a car loan?
Normally, it takes like a week to process your loan application which will include everything from your background verification to the loan amount disbursal. But some financial institutions like slickcashloan provide car loan instantly.
- What is the EMI cycle?
The EMI due date or cycle is totally dependable on the borrower. It can be the first of every month or sometimes 5th too. The borrower has all the freedom to choose the day as per their convenience.