Is Car Loan Secured For Me

A car loan is the type of loan where a person will be entitled to repay the loan amount he would have got either in his bank account or the account of the car company . The finance ministry secretary has announced recently that few strategies have been made where the people who have availed the home loan, car loan, and other types of financial help from. The different types of the Institution. They were getting a moratorium period of fewer than two years. According to the new rule those who are facing problems in the repayment of the loan will be getting the moratorium period of upto two years.

This has been done for the safeguard of the public as well as for the welfare of the government. The first and foremost good thing is that nowadays most companies use the limitation of what percentage of the loan will be given while on the other side of the coin the loan availing is now 100% slowly this will increase in future as well. So one will not have to wait in the thinking that there is the availability of the loans with hundred per cent of the loan financing.

There is too much flexibility in choosing the loan tenures. Different banks have different tenure periods, and one will need to decide accordingly which assignment to select. There is an advantage in both the cases if a person is establishing a long period then the EMI burden will be more while on the other side of the coin if there is the surplus amount, the loan tenure can be restructured as well as one will be the quick repayment if permitted then the principal payment will be decreased. Car Loan Interest Rate will give better estimation.

There is also the availability of availing the loan based on the used cars as well. The interest on the loan of this type of car is a bit higher than that of the former because the employed or the old cars are having wear and tear that got depreciated and can get the damaged property at any point of time. SBI Car Loan offers good services to its customers. This is the reason that they will not get the correct or enough resale value.

There are other opportunities that make the car loan a bit better in terms of the comparison with the different types of loans as well. There is the chance of maintaining or bargaining the interest rates if the person's credit score is good. On the other side of the coin, there are few opportunities if the relationship with the bank is perfect.


In most cases, there is no collateral, while on the other side of the coin, there will not be any requirement for the same. The car itself will be acting as the collateral security for the car loan. When there is any kind of issue, the same amount can be collected by selling the car or auctioning it.

Conclusion:

There is the option of selecting the repayment options. A person can use the post-dated cheques and set direct debit on the fixed stated date of every month from the bank account. On the other side of the coin, there is the flexibility of choosing a different kind of payment option. In cases of the method of calculation and the payment of the interest, people also have the freedom to select which one. For example, a Car loan costs 10,00,000 while in the fixed-rate method, the person will have to pay 5% that is 50,000 on the 1st month as well as on the 2nd month while in the floating process, the first month's interest will be charged that is the amount of Rs 50,000 will be deducted, and 5% now will be charged on the second balance left is 5% on Rs 9,50,000.