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There used to be a time when purchasing a car was a lifelong dream of previous generations. But these days car is no longer a luxury but is a necessity. The flurry of auto loan options available today has made it easy for people to purchase a car at any point of time in their life. For those people who are looking to get used car loan Bangalore, here are a few tips.
Check Eligibility
Banks and financial institutions have different eligibility criterions for car loans. There are different kind of eligibility guidelines for salaried people and self-employed individuals. Check where you fit in these guidelines.
Check Interest Rates
Different institutions offer auto loans at different rates. But that’s not all. The calculation methods also change. So talk to multiple institutions to find out what sort or rates they are charging and whether it is a simple rate or reducing balance rate that is applied.
Check Repayment Options
Some institutions may charge you extra for early repayment of the principal amount. But if the principal amount gets reduced upfront then your interest reduces and the overall amount that you repay would reduce considerably. So check if you get that early repayment option or not and if you do then the payment would be adjusted against the principal or interest.
Check Your Credit Score
If you have defaulted on repayment of some other loans or if you have a lot of credit card bill outstanding, then it gets reflected on your credit score. Your credit score will determine the amount of loan that you would be eligible for. You can check your credit scores online.
Check Documents
You need to keep a slew of documents ready for availing a loan. Find out what is mandatory and what is not.
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