Across the globe, the coronavirus outbreak has resulted in a closure of schools, bars/restaurants, and offices. Enforced self-quarantine and social distancing have helped reduce viral infection to some extent. But traveling safely has become a challenge during this pandemic, when having a personal vehicle seems the only viable option for commuting.
Owning a car has become necessary for every individual today to continue working while safeguarding self from getting infected in public. However, with troubling finances and lack of job security due to the ongoing pandemic, not everybody can afford to buy a new car. Availing a car loan becomes your best bet as it helps in saving money while financing the vehicle.
You may think of buying a car using your savings; however, it can affect your financial health in the long run if you face any medical or another financial emergency. It is always advisable to set aside significant funds for emergencies and unforeseeable events.
Here’s all you need to learn about taking a car loan during a pandemic:
- Make Sure EMIs Fit Your Monthly Budget
We all are going through a rough patch financially, and therefore it becomes crucial to think about affordability. Check your EMI payment capacity by deducting monthly expenses from your net monthly income. Make sure you plan loan repayment before taking a car loan to avoid troubles later.
- Compare Interest Rates Online
Interest rates of a car loan vary for different loan providers. They also depend on the car model, repayment capacity, credit score, and similar other parameters. Today, with the expansion of the online market due to global lockdown, many loan processes have also shifted online. You can browse through various car loan options and choose the one with your suitable interest rate.
As the market has no standard rates, you can shop around for the best interest rate while looking for a car loan. Comparing can help you evaluate the deals and get the lowest interest rate.
- Pre Payment Charges
Many car loan lenders charge prepayment charges, especially on fixed-rate loans. Make sure to enquire about these charges and their amount while selecting your lender. Paying prepayment charges can help reduce your interest costs. It is wise to read all documents carefully to learn about any additional charges while applying for a car loan.
- Tenure Selection
The car loan repayment tenure is one of the most crucial aspects to consider. Planning your repayment is essential before even applying for a car loan. You must use a car loan EMI calculator to get a clearer picture according to your income and repayment capacity. It is advisable to choose a shorter tenure to save money in the long run.
Research Thoroughly While Looking for a Car Loan
It is crucial to be aware of every detail about car loans as it is undoubtedly a big financial decision for anyone. Despite the coronavirus outbreak, we cannot neglect the necessities, especially when it’s unsafe to travel by public transport. A shortage of funds can no longer restrict you from buying the car of your dreams.
Availing a car loan is the best financing option to buy a car without draining away all your savings. Banks like Axis Bank offer car loans starting from Rs. 1 Lakh up to 100% on-road price at affordable interest rates. You can avail car loans for new or pre-owned cars or get a top-up on the current car loan. The bank also offers multiple benefits along with various customization options.
So, apply for a car loan today and make your dreams come true!