Car Loan: A Way Of Buying Your Dream Car

In current scenario, owning a car has become both necessity and a matter of pride. If you are having your own car then it gives you a flexibility to travel anywhere without any obstructions. As there are varied easy car financing schemes available in the market, more and more people are opting to buy a car without thinking much about the finances as the loan repayment is required to made over the period of time. As there are varied lenders in the market, like, PNB car loan, Axis Bank car loan, HDFC Bank new car loan, SBI car loan, etc., it is quite possible to buy a car on loan. So, if you are also interested in applying for the car loan but do not have any knowledge about its basics then let's have a look on some of its key features-

1. The car loan tenure can vary from one to seven years.
2. Usually, all lending institutions charge processing fee. It is a one-time fee and is charged for processing your application and for completing other legal formalities. Usually, it varies between 2 per cent and 4 per cent.
3. When a borrower makes prepayment of the loan amount then banks charge pre-payment penalty. 
4. Usually, in most of the cases there is no need of a guarantor but if the applicant's income falls short of the credit criteria of the lender, then there could arise the need of a guarantor. 
5. Usually, banks provide preferential treatment to their current clients. It means, if you are having a saving or a current account with the bank then you can get loan at easy interest rates. 

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