Car Loan Guide for Beginners - Know Everything About Car Loan

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Car Loan Guide for Beginners - Know
Everything About Car Loan
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Introduction
Nowadays, the desire to buy a car is not just for
luxury or status. Owning a car has become a
necessity, and it is far more convenient and
comfortable than public transport. A car will
help you save transportation time and give you
comfort in every weather and situation. You can
even use your car for commercial purposes and
earn money.
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Buying a car is an important milestone in any
person's life after owning a house. Because it
requires a significant amount of money, you can
solve this funding issue by taking a car loan. In
the prevailing time, taking a car loan is easier
and more convenient than before. You can even
get a car loan through an online
application. But before you apply for a loan to
buy your dream car, it will prove beneficiary
for you to consider the following points.
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• A few things You Should Consider Before Applying
  For a Car Loan
• Interest Rate
• Loan Amount, EMIs, and Loan Repayment Tenure
• Never Forget to Calculate Processing Fees,
  Service Tax, and Pre-Closure Penalties
• CIBIL Score
• Proper Documentation

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1) Interest Rate One of the most essential
things you should consider before applying for a
car loan is an interest rate. The interest rate
significantly impacts your EMI, loan tenure, and
ability to pay back the loan. So, always compare
the interest rates offered by various car loan
providers in Ahmedabad. There is no standard
rate of interest for a car loan. Thus, you can
benefit from the difference between the different
interest rates. Hence, before going for a car
loan, never forget to study quotations of
interest rates of various car loan providers. It
will help you make a wise decision.
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2) Loan Amount, EMIs, and Loan Repayment
Tenure Nowadays, car loan providers offer a loan
of up to 100 of the car's on- road price. You
can choose the right amount of loan according to
the price of the car and the money you require
to purchase a car. But you should never forget
that the hefty loan amount means a high-
interest rate with big EMIs. In contrast, a
smaller loan amount means a lower interest rate
with smaller EMIs.
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Your loan amount and EMIs will significantly
impact your repayment tenure. An extended
repayment period means small EMIs with high
interest and more financial burden. At the same
time, a shorter repayment period means hefty EMIs
with comparatively lower interest and less
financial burden.

• So, always consider these points before deciding
  to go for a car loan.

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3) Never Forget to Calculate Processing Fees,
Service Tax, and Pre- Closure Penalties After
calculating and assessing EMIs and repayment
tenure for a car loan, you should see through
the things like processing fees, service tax, and
pre- closure penalties. Processing fees
Service Tax Pre-Closure Penalties
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Processing fees Processing fees vary from lender
to lender. So, always compare the processing
fees charged by the various loan providers to
take the benefit of rate differentiation. Service
Tax You can pay the service tax in two
different ways. First, you can pay in the
lump-sum amount at once. And second, you can pay
the tax on a yearly basis. Pre-Closure
Penalties The lender will charge pre-closure
penalties. When you cleared the payment of your
loan amount before your pre- decided loan
tenure. The rate of the pre-closure penalty
differs from lender to lender. It is
advantageous for you to choose your loan provider
only after carefully studying the points
mentioned above.
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4) CIBIL Score
CIBIL score represents your credit history. And
your credit history refers to your past
transaction with your moneylender. Hence, your
CIBIL score reflects your creditworthiness. There
is no pre-decided standard of CIBIL score to
obtain a car loan. But CIBIL score of more than
750 is an ideal score according to the various
moneylenders. So, if your credit score is not up
to par, you should immediately start working on
it.
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5) Proper Documentation

• You have to prepare proper documentation before
  you apply for a car loan. Every loan provider
  requires a few documents for granting loans. And
  this requirement of documents won't change even
  if you decide to apply online for a car loan.

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The documents you need for a car loan are
hereunder. Your address proof ID proof income
proof Bank statement It will be better if you
prepare these documents before applying for a car
loan as It will save your time in the future and
make your loan procedure quick and smooth.
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Conclusion
Obtaining a car loan is more accessible than a
home loan or a personal loan, and the procedure
to get a car loan has become easier with online
loan services. And with the help of the points
mentioned earlier, you can choose the best car
loan provider in Ahmedabad. Get the best offers
on a car loan in Ahmedabad at AGIL Finance. We
offer top-notch financial services. AGIl Finance
is known for its easy loan procedures with
minimum documentation and fast disbursal. Obtain
a project finance loan and working capital loan
in India from AGIL Finance If you have any
questions or want more details regarding a car
loan or other loan services, please contact us
at info1_at_agil.co.in and get easy access to funds.
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AGIL
info1_at_agil.co.in 91 7845129623