Unlike the personal loan which is used for commercial purposes, medical emergencies and other purposes, a car loan is only used for availing a vehicle. It is quite different from a car loan wherein the vehicle serves as the collateral.
Buddy Loan is one of the biggest loan aggregators in India that disburses loans at lower interest rates starting at 11.99% p.a. They also have no cost EMI car loan options that help you work your credit score with ease.
A car loan is nothing but a personal loan that is intended for only vehicle purchases and any expenditure related to vehicles only.
Also Read: Make Life Easier with No Charge EMI!
Availing a Car/Four-Wheeler Loan
Getting an instant personal loan today is the easiest and the turnaround time for your loan approval is faster with online documentation. Instant vehicle loan requires very minimal documentation. They are disbursed at on-road prices.
There are certain factors the borrower will have to look for will applying for car loan. Using the EMI calculator, pre-plan the car you dream of buying by roughly estimating the expenses. The EMI scale is present in every loan site to help you calculate your monthly EMIs, total sum of interest rate and more.
By doing this, you will auto check your credit score and thus it is easier to maintain that too. Research the loan offers carefully and the EMIs that the financial institution can provide.
Eligibility Criteria
Car/vehicle loan is nothing but a personal loan that is availed during the financial shortcomings in the event of purchasing a car/vehicle. There are many competitive interest rates from which you will have to pick the appropriate ones.
The borrower should bear in mind that he/she should be min 25 years – 60 years old to avail the loan. It is more helpful if the borrower is salaried or car loan eligibility for self-employed with a minimum salary of Rs. 20,000/-. The approval rate and interest rate depend on the borrowers’ credit history.
The applicant can avail of instant loan approval up to Rs. 15 lakhs for an application. The borrower can discuss further with the lender for best EMI options in between the loan tenure of 3 months to 5 years.
Also Read: How to Get Car Loans Without Collateral?
EMI & Tenure
Buddy Loan disburses instant car loans for a loan whose repayment tenure is of 3 months to 5 years. The better option is that you could tell your lender if there are certain concerns and EMI payment can customise such that it only enhances your credit score.
Also Read: Car Prices In India: What Will You Get For Your Money?
Missing a Car Loan EMI
There are many EMIs that you will need to predefine and allot amount to pay the following EMIs on time. Over time, if you miss an EMI, your lender will allow you to repay the amount late but with more interest or charges.
Another note to keep in mind before availing of a car loan is Missing three straight EMI payments will lead to being classified as a non-performing asset.
In the case of a securitised loan, such as a car or home loan, the lender reserves the right to legally initiate the loan recovery process.
Arresting your asset such as the car in this case and will liquidate it to recover the dues. Defaulting is a big no! When you do so, the credit score will take a ramped hit.
Factors Affecting the EMI of Car Loan:
Mainly, there are 3 major factors that affect your EMIs, below are the factors mentioned which can be maintained with due preparation.
Loan amount: It is the principal amount you borrow and is the primary factor that decides your EMI. The higher the loan amount, the bigger is the EMI. It also depends on the loan term.
Interest rate: The car loan interest rate is one of the many critical factors affecting your EMIs. In other words, EMIs are directly proportional to the interest rate. Lenders provide interest rates i.e. calculated your income, repayment capacity, credit history, prevailing market situation, etc.
Tenure: The last factor that affects your EMI is the tenure of the loan. Longer tenors generally mean lower EMIs and that of shorter-term means higher loan amount. However, longer tenures also mean a higher interest outgo for the long run.
5 benefits of EMI calculator:
- Easy to access and estimate your finances.
- Provides quick results
- Saves time and energy spent on doing manual calculations.
- You can assert the amount you can spend for Car Loan EMI Calculator outgo
- Plan your loan and EMIs with a calculator
Also Read: 3 Lakh Personal Loan EMI
Conclusion
Car loans have good flexibility with the payment structure. Thus, EMI options can be customized to the borrower’s needs and help them enhance their credit score without any default in the instalments.
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