Car Loan Know These Important Things Before Applying

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Tips for car loans: If you are planning to purchase a new car and are planning to get a loan to finance it, you must be aware of a few important aspects prior to taking out the loan. If not, it could happen that the company providing the loan is unable to provide you with the loan at the very last moment. If this happens, there is no other option to choose. It is therefore crucial to know the basics.

CIBIL score and repayment Capacity

If a person wants to get a loan from a bank, the lender first scrutinizes their CIBIL score and his Repayment Capability. Repayment capacity refers to whether the borrower can repay the loan amount or not. If both of these are in line to the requirements for the lender, the loan procedure is extended.

Duration of loan and EMI

Prior to taking out the loan, and in what the time frame it must be returned should be decided in advance. If it is a loan with a long-term term it is necessary to pay higher interest. be paid. Therefore, it is important to apply following a thorough understanding of the rate of interest and the duration of loan. Additionally, EMI should also be determined based on one’s ability in order to avoid having to pay back the loan in the future. Once you have mastered all of these aspects correctly, it is important to select the most suitable loan option.

Make these documents available

When you apply to borrow money, make sure you have the necessary documents in your possession. If you earn a salary each month, you must keep a copy salary slip and the tax return for the last three months. Also, If you are involved in any type of commercial activity, keep the documents like a certified balance sheet prepared by an accountant who is chartered for the last three years. Before you submit these documents to lenders, make the entire set along with you.

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