The markets are finally looking bright again and every car maker is looking to shine in this bright opportunity. On the back of new car launches, festival offers, car makers are attracting buyers with car loans as well.

1. How to Choose a Car Loan

2. Title and Content Layout with List
• How to Choose a Car Loan
• Easy Car Loan
• Approach Banks for car loans
• Choose in the best Interest rate
• What are the Loan Charges?
• Processing fees
• Prepayment charge and late payment penalty
• How do you make the final decision?

3. How to Choose a Car Loan
The markets are finally looking bright again and every car maker is
looking to shine in this bright opportunity. On the back of new car
launches, festival offers, car makers are attracting buyers with car
loans as well.
 In fact experts claim that eight percent of car purchases are financed
through car loans. You can start off your car loan hunt with banks or
exclusive car loan financers. However before you start your car loan,
drive through these steps.

4. Easy Car Loan
 Most reputed car makers offer their own finance schemes who are tied up with a
Bank. However, you can be left short of options as they might not be convenient to
you in terms of the EMI, loan tenure and interest rates etc.

5. Approach Banks for car loans
 With Banks you can ask for a car loan for any car, any make and any
model and any amount. However, banks have a very strict parameter to
disburse car loans. For example the minimum income eligibility most
banks expect is around 2.5 lacs while the car maker’s finance scheme can
starts usually at a cheaper income.
 For example, Volkswagen offers cars through their finance for an income
of just 2 lakh and you can avail a car loan for up to 20 lakh.
 On further inspection, though you might see that higher loan amount
comes at the cost of a shorter tenure and most of the car maker financers
offer close to five years loan tenure while banks go up to 10 years.

6. Choose in the Best Interest Rate
 Banks are a bigger financial
organization and can offer lower
interest rates compared to the
financers from the car maker.
However, car maker financers are not
standard across all applicants.
 Some companies offer lower interest
rates for new customers to keep their
loyalty while you can actually find the
interest rates on the website of the
bank.

7. What are the Loan Charges?
The interest rates are just a part of
choosing the best car loan. You
also need to consider other
charges that include the likes of
processing fees, if there any
prepayment charges and what is
the percentage of late penalty
charges applicable.

8. Processing Fees
 Banks offer lower processing charges while car financers are higher,
especially as the cost of the car increases.

9. Prepayment charge and late payment penalty
 Some banks charges early
payment charges and while
some do not. However, for
floating rate of interest car
loans, RBI has asked banks not
to charge for car loans.
However, not paying on time is
surely attract to interest from
the both the car loan issuers.

10. How do you make the final decision?
The best way is to compare all the
loan options right from the interest
rates to the last detail including the
repayment tenure.
 End of the day both banks and car
financers have their plus and minus.
Just compare between both the
players and take best call.

11. BANKBAZAAR
 Thank you for checking through our slide. For more information about
the Car Loans, just browse through BankBazaar.com