Loan Tips for Your Next Car Purchase

Buying a car involves a significant amount of investment, and seeing as the times have changed, it has become a much more expensive expenditure than it once was. 

Most people prefer taking out a car loan instead of shelling out their savings, irrespective of whether they are buying a new model or a used one. Leading private and public banks, NBFCs and automobile companies provide easy car loans at competitive rates. The catch is to know how to get the best car loan. 

Whether you plan to buy Maruti Suzuki Ertiga loan, or any other model, listed below are tips that can help them get the most out of the car loan. 

Plan Your Budget 

A solid budget plan can help you estimate how much money you need for a loan. It will help you analyse your expected monthly EMI amount, so you can better plan your repayments. In addition, when planning you car budget, keeping in mind the additional costs that your purchase will incur, such as the on-road price, RTO, and so on. That way, you will be able to better manage your finances and repayments, as both are crucial post purchasing a car on loan. 

Loan Tenure 

The longer the loan tenure, the more interest you will have to pay along the line. On the other hand, a shorter tenure, even though it keeps the interest amount at the minimum, will increase your monthly EMIs. Try to balance this out as per your financial capacity. In short, choose a tenure that makes your EMI amount fits best in your monthly budget. 

Credit Score

The loan amount you are eligible for depends on your credit score, age and income. Maintaining a healthy credit score can help you procure loans much more easily and at the best interest rates. Your credit score shows your credibility in repaying your debts. Make sure to pay off any existing loans and practise making on-time payments. 

Whether you plan to finance a new Maruti Suzuki Ertiga or a used one, these tips can help you get the best out of your purchase and get a loan that best suits your needs and budget.