Banks charge a processing fee between Rs 3000 and Rs 5500 for a car loan. In addition to the processing fee, various other taxes are collected, such as documentation fees, stamp duties, credit cancellation fees, etc. Therefore, as a borrower, you need to calculate the other fees before concluding the car credit provider. It therefore implies that the borrower is not able to manage the finances well. If you look at things differently, if you take into account the average savings rate of 30% in India. You can save on your income in 18 months for the purchase of a car. If it`s difficult, something is wrong somewhere. If you are planning a home loan in the next 3-5 years, it is not advisable to resort to a car loan, as this can have a negative impact on the CIBIL score and reduce your future eligibility for credit. Also remember that any type of loan increases the accessibility factor for a borrower. Increased affordability entails indirect costs.
For example, I can afford a small car without the need for credit. Due to the ease of loan availability, I downgraded to the premium or XUV segment. It will also increase my maintenance and operating costs. Mileage will be lower and maintenance costs will be high. These are hidden/indirect costs that you pay for car credit. A car loan is a low-value credit compared to your salary. There is a paradox, for example. B if the approved credit is high, it means that your income is high.
The question of millions of dollars is, if your income is high, why you resort to a car loan. It is understandable in the case of a home construction loan, as the property has a strong purchase of tickets, but this is not the case for a car loan. Normally, the approved auto credit is 6 times your monthly salary/income. If you are looking for flexible systems, quick payment of your credits, attractive interest rates at the click of a mouse, your search stops here. ICICI Bank Car Loans is the most preferred financier for car credit in the country and offers you all this with incredible ease. Different banks use different terminologies, which makes the borrower confused. For simplicity, if you pay part of the car credit in advance, it is a partial deposit / partial deposit. On the other hand, if you pay your car loan in full before the end of the repayment period, then it is the forced execution / full deposit. In my opinion, buying a credit asset makes sense from a personal financial point of view and the car does not qualify in this category. A car loan is like buying a share for a loan that we know in advance that the stock will definitely decrease by 50% over the next 3 years.
Are you going to invest in such stocks? If the answer is NO, the same goes for car loans. On the contrary, I understand that the car is a must for the family because of the comfort factor. Therefore, you can buy a car with the high resale value and with savings…