usually But we all take loan from bank to buy car. But, do you know that your car can become a companion of trouble. If not, then we are telling. Actually, when you need money in an emergency, you can easily take a loan from the bank against your car. This is because loan against car is a secured loan. That’s why banks give you loans easily and at low interest. Come, let us know how you can take a loan against your car and how is it beneficial?
Lower interest than personal loan
If you take a personal loan from any bank, then banks charge you 15% to 17% interest annually. Many private banks also charge interest up to 20%. On the other hand, if you take a loan on a car, then banks charge you 13% to 14% interest. That is, you have to pay less interest as compared to personal loan. In addition, the loan against car tenure is also longer by two years. Banking experts say that you will get this loan only when you have paid 9 EMIs of the car loan. Banks also offer you pre-approved loan against car if you pay the car loan EMI regularly.
To avail a car loan, you need to provide the car papers along with the application form. Banks do verification first on your application. After this the valuation of your car is decided. Loan is given on the basis of this. Banks offer loans ranging from 50 to 150 per cent of the cost of your car. However, it keeps on fluctuating depending on the banks and financial companies. That is, if your car is expensive then you can get more money in loan. Be sure to keep in mind the processing fee, documentation charges, stamps, RTO transfer charges, EMI bounce charges, etc. before taking a car loan. Failure to do so may cause harm to you.
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