The vehicle loan interest rate should be your top priority because you intend to borrow money from a bank. The range is between 12 and 15%, albeit it varies from lender to lender.
Some banks grant loans for up to 90% or even 100% of the car's ex-showroom cost. But as a general rule, it's wise to fund about 20% of the total amount personally and borrow the other 80% from a bank.
A car loan is more complicated than it first appears. You must pay additional costs such processing fees, documentation fees, prepayment, foreclosure, etc. in addition to the principal and interest.
Your car loan term should be as short as possible, say financial experts. This may seem paradoxical at first because shorter tenures necessitate larger EMI payments while simultaneously lowering interest rate charges.
Preferably, you should borrow less money if you have a greater down payment. Over time, this also leads to lower interest payments, saving you money overall.
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