Compared to other regions in India, the purchasing power of residents in Delhi NCR tends to increase more rapidly and getting a personal transportation means, such as cars may become a priority for them. Car loans may help them to buy a vehicle of their dream. The amount of car loan provided by banks and financial institutions in India may amount up to six times the annual income of self employed individuals or three times the annual salary of employed individuals. To achieve lower loan amount, borrowers in Delhi NCR seeking for new cars should get about 90 percent amount of the ex-showroom price. When looking for used cars, they should try to get about 80 percent of the current market value.
As far as car loan interest rates are concerned, finding the cheapest deal often depends on borrowers’ previous financial records. To compensate for bad records and assure a much lower loan rate, borrowers can make a sizable amount of down payment. Car loan repayments are usually made between three to seven years.
When looking for lenders with cheapest car loans in Delhi NCR, borrowers shouldn’t look only for the lowest rate. Some lenders may try to attract more borrowers initially by offering low interest rate, but they charge higher minimum payment amount and prepayment penalties. By choosing lenders with low or no prepayment penalties, borrowers can get rid of their loan early, whenever they are able to do so. It should be noted that banks and financial institutions in India use the car as collateral.