{"id":40045,"date":"2019-02-19T16:31:13","date_gmt":"2019-02-19T11:01:13","guid":{"rendered":"https:\/\/www.newsilike.in\/?p=40045"},"modified":"2019-02-27T15:47:16","modified_gmt":"2019-02-27T10:17:16","slug":"5-questions-to-ask-the-financial-institution-before-availing-a-vehicle-loan","status":"publish","type":"post","link":"https:\/\/www.newsilike.in\/5-questions-to-ask-the-financial-institution-before-availing-a-vehicle-loan\/","title":{"rendered":"5 Questions to Ask the Financial Institution before Availing a Vehicle Loan"},"content":{"rendered":"\n
\"how-to-choose-best-car-loan\"<\/figure>\n\n\n\n

Seeking a loan can be a tedious process, especially when it is your first time. There are many verticals that you must be aware of before applying for a used car and vehicle loan<\/a><\/strong>. The idea here is to be able to make an informed decision that has no negative impact on the future financial health. Here are 5 questions that you can ask \u2013<\/p>\n\n\n\n

1. What Is the Interest Rate and What Is the Total Amount Being Financed?<\/strong><\/h2>\n\n\n\n

You must know the\ninterest rate of the used car and\nvehicle loan<\/strong>. This interest rate will reflect on the monthly EMI that you\nwill pay out eventually. It is recommended to be aware of the standard industry\nrates that is charged for a vehicle loan. The\ninterest rate for vehicle loans can be anywhere between 9.5% and 11%. You can\nget a relatively lower interest rate if you have an existing relationship with\nthe financial entity.<\/p>\n\n\n\n

The next important thing\nthat you must take note of is the amount of the vehicle being financed under the\nvehicle loan. Ideally, 20% of the vehicle\nprice must be self-funded and the remaining 80% can be financed by the\nfinancial entity.<\/p>\n\n\n\n

2. What Is the Final Price?<\/strong><\/h2>\n\n\n\n

Most people don\u2019t look at\nthe final figures or the total amount they would be paying.  There are many other charges such as the loan\nprocessing amount, documentation costs, foreclosure cost and the penalty\ncharges, which need to be taken into consideration for arriving at the final\namount. If you consider these, the final\namount will definitely go high. Hence, you\nmust be able to assess these costs and calculate your ability to repay before\nseeking the final loan. <\/p>\n\n\n\n

3. What All Does the Car Loan Fee Include?<\/strong><\/h2>\n\n\n\n

There are many charges\nthat are applicable at the time of sanctioning the final loan amount. These\nmiscellaneous charges include stamp duty, credit report charges, service\ncharge, loan processing charge, prepayment fee, registration fee, taxes, bounce\ncharges etc. You need to ask your lender whether\nthis will be subsumed under the loan amount or\nit has to be paid separately.<\/p>\n\n\n\n

4. Will I Be Able to Make Payments Early?<\/strong><\/h2>\n\n\n\n

Many borrowers overlook\nthis part. Most of the banks have a penalty for prepayment and foreclosures.\nYou need to make sure the charges for the same are minimal. There are many\nentities that don\u2019t charge any fee at all. You can save a lot by giving\npreference to such financial entities.<\/p>\n\n\n\n

5. What Documents Will I Need?<\/strong><\/h2>\n\n\n\n

Every financial institution will have\na different set of requirements. As a borrower, you will be required to produce\ndocuments that support your ability to repay the loan. Often, these documents\nare proof of the legitimacy of the borrower. In a majority of the cases, you\nwill need to procure the following documents:<\/p>\n\n\n\n

\u2022 KYC documents supporting age, identity, and address proof.<\/p>\n\n\n\n

\u2022 Employment proof<\/p>\n\n\n\n

\u2022 Bank statements<\/p>\n\n\n\n

\u2022 Income proof<\/p>\n\n\n\n

\u2022 Business ownership and stability proof<\/p>\n\n\n\n

You must choose your lender wisely\nand check your credit score to gauge your financial stability. You may proceed\nwith the loan only when you tick all the boxes on the checklist.<\/p>\n","protected":false},"excerpt":{"rendered":"

Seeking a loan can be a tedious process, especially when it is your first time. There are many verticals that you must be aware of before applying for a used car and vehicle loan. The idea here is to be able to make an informed decision that has no negative impact on the future financial…<\/p>\n Read More<\/span> 5 Questions to Ask the Financial Institution before Availing a Vehicle Loan<\/span><\/a>","protected":false},"author":2,"featured_media":40046,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"Layout":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[4634],"tags":[],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.newsilike.in\/wp-content\/uploads\/how-to-choose-best-car-loan.jpg","_links":{"self":[{"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/posts\/40045"}],"collection":[{"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/comments?post=40045"}],"version-history":[{"count":0,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/posts\/40045\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/media\/40046"}],"wp:attachment":[{"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/media?parent=40045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/categories?post=40045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/tags?post=40045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}