Maximizing the Value: Tips for Getting the Best Deals on Loans Against Cars in Varanasi
Today, buying a car has become easier than ever. This is because car loans are available at much lower interest rates compared to unsecured loan products like personal loans. However, one is always on the lookout for the best deals on such loans. In this blog, Bhumi Finance brings you tips to get the best deals on loans against cars in Varanasi. While the car loan application process has become much easier nowadays, however, to get the best car loan interest rate you need to consider some of these important tips:
- Monitor your credit score
Your credit score has a big impact on the application approval for your loan against second hand car. You should start monitoring your credit score at least 6 to 8 months before applying for a car loan. Having a higher credit score improves the chances of securing a better pre-approved car loan. Those with a credit score of above 750 have high chances of car loan approval and at the best interest rate. All financial lenders check the credit report of applicants before approving any loan request. Hence, it is highly suggested that you should start monitoring your credit score yourself in advance to improve your score in case it's below 700.
- Compare car loan interest rates
Different banks offer different interest rates on loans against cars in Varanasi. From time to time, banks also launch some additional offers on car loans. So, it's always better to check and compare the interest rates and other offers by various banks. You should also note that the sanctioned amount of a used car loan in Ballia also depends on the vehicle model, repayment capability, financial status, and credit score of an applicant among other things. Banks are likely to provide better interest rate and fast approval to the existing account holders considering he/she has a good repayment history.
- Check out the car loan processing fee
Car loan processing fee is one of the most overlooked aspects when it comes to choosing the best loan offer. Most of the banks charge a car loan processing fee of around 2 percent or more of the entire amount which means you may have to spend thousands of rupees extra. Check the instant loan against car calculator to find out how much difference it can make. However, during the festive seasons, most banks offer car loan processing fee waivers on the entire loan amount or reduce this car loan processing fee in some cases. It's highly recommended that you wait for the right time and the right offer before buying a new car.
- Select a car loan with minimum pre-closure charges
Most car loan products including loan against second hand car come with additional foreclosure or pre-closure charges. So in case you want to foreclose your car loan or make prepayments to reduce the overall loan interest, you will have to pay two to five percent of the remaining principal amount depending upon the agreement set by the bank. Hence, it is highly recommended that you check with your financial lender about foreclosure charges at the time of availing the instant loan against car. Try to negotiate and opt for a car loan that has minimum pre-closure or foreclosure charges.
Reach out to Bhumi Finance to avail premium second hand car finance in Varanasi.