The arrival of a new car in the house is one of the happiest moments of life. Every person wants to provide a comfortable travel facility for his family. For this, no other way is considered better than the car. Some people also take the help of a car loan to buy a new car. But first-time car loan customers are not very familiar with this process. This thing creates maximum scope for error. Therefore, before applying for a car loan, take care of some important things. The tips mentioned here will go a long way in getting the car loan cleared quickly.
pay the loan on time
Every bank prefers that customer who repays the loan on time. If you have already taken a home loan, personal loan, or any other loan, then definitely pay the EMI on time. This also applies to your credit card bill.
By repaying the loan or EMI on time, you not only avoid heavy penalties but also maintain a good credit record. This makes it easy for the bank to understand that you can be given a loan.
improve credit score
If your credit score, like the CIBIL score, is low, then you should try to increase it. You must ensure that you have repaid the old loan. If there is any defect in the report, then definitely get it corrected.
Use your credit card's credit limit wisely. It would be better if you ask your credit card company to increase the credit limit. This has a positive effect on your score.
Know your eligibility
Every bank sets some criteria for granting a car loan. Banks decide the criteria like minimum income or maximum loan amount required by the borrowers of the loan. Therefore, get the correct information about the eligibility rules of different banks. This will show whether you fulfill the eligibility criteria for the kind of customer the bank wants.
Down payment and documents
Some banks require customers to pay 15-20 percent of the cost of the new car. At the same time, the bank will meet the remaining amount through a car loan. Therefore, it is beneficial to arrange the down payment amount in advance. On the other hand, some banks offer 100% finance on buying a new car. So you do not have to worry about the down payment.
Check the bank's website for the list of required documents and keep them ready. This will reduce the chances of your loan application getting rejected.
Buy a car from the good car showroom
Many dealerships have tie-ups with banks. Hence, it is a good idea to visit such showrooms as the chances of getting a car loan increase here. At the same time, try to go to a showroom that has a tie-up with the bank in which you have an account.
Take a car loan from your bank
If you already have an account with any bank, then it would be good to apply for a car loan in that bank. It will be easier for you to persuade the bank to give you the loan. Because the bank knows very well whether it will be right to give you a loan or not. Some banks provide instant loans to select account holders with minimal documentation.