How to Get a Car Loan: 9 Steps - Geekeasier
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In today's time where vehicles have become very important for official and domestic purposes, owning a four-wheeler, i.e a car has become much more easy. In fact, inadequate finances are no more an obstacle with the availability of car loans. Here are all the steps that you need to follow to get a car loan and own a car of your own!

Steps

  1. 1
    Make sure that your bank account records are clear- While looking for a loan, it is very important to ensure that your bank account does not have any debt pending. There should have been several transactions from your account and the account should have an appropriate amount of money. These details ensure that you will be able to pay your loan installments.

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  2. 2
    Have a stable residence- For getting a car loan, it is very important for you to be living at the same address for more than 6 months. In some cases, banks might also ask for an extended period of a year. This is important for the money lenders so that they can track you. So, if you are observed to be moving often, you might face a difficulty in getting a loan.
  3. 3
    Have a stable employment and income- This is another very significant requirement for getting a car loan. At the time of submitting your documents, the bank representative will ask for your salary and a proof of it, which can be an employment letter or a salary slip. Your income should be stable and under any case, should not be below a level that would obstruct your payment of loan installments. Your monthly salary should be enough to pay the monthly installments and also manage your living.
  4. 4
    Maintain your savings- To get a car loan, you must also show your financial responsibility to the bank. This can be shown through your savings' record. For this, all you need to do is save a fixed amount from your salary and deposit it in your savings account monthly. This will ensure that you are financially responsible and will be able to manage the expenses of installments of car loan.
  5. 5
    Choose your car wisely- This might seem to be a very obvious step, but in reality, many people are unable to get a car loan because of their selection of car. Choose a car that is within your budget and whose interest rates are affordable. Also, ensure that the monthly installments are within your budget. For all these, you must choose a feasible car and plan for it accordingly.
  6. 6
    Collect money for down payment- Down payment is the amount that you give at the time of buying a car and of the amount that is left, the installments are divided. If the down payment is more, the amount per installment will be less and vice versa. Therefore, it is always advisable to save as much as you can for the down payment. This will not only be an advantage while buying a new car, but will also reduce the amount that you'll have to pay every month. This in turn, will make it easier for you to pay off the installments.
  7. 7
    Visit several showrooms and car dealers- Buying a car is not same as buying any other good. Interest rates, no. of installments and down payment options make a great difference while buying a car. These offers are different across different stores. So, shop around. Look for different options that various retailers and showrooms are offering and then decide from where you want to buy the car.
  8. 8
    Prepare the necessary documentation- Arrange for all your necessary documents. If you're unable to provide any necessary documentation, your chances of getting car loan drop down to a complete zero. These documents are thus, extremely important. These documents include your income certificate, pan card, bank statement, utility bills, rental agreement and mortgage statements. Make sure that all these are available and are up-to-date. Also, if you are sending these documents through an agent or another family member, make sure that you self- attest these photocopies of documents. All documents are accepted only when they are self- attested.
  9. 9
    Wait for the approval- Majority of the banks give immediate approval on receiving the required documentation and verification. However, in some cases, it might also take time to get approval. Do not insist the bank authorities for a faster approval. Any inconvenience caused to them by you can also harm your chances of getting a loan.

Tips

  • Make sure that you are able to pay off the loan. In failing to do so, the banks will send a repo truck to your residence.
  • Take only as much loan as is required.

Article Info

Categories: Car Finances

Recent edits by: urvashi sharma

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