It is tempting to purchase a brand new automotive, be it an improve, a primary automotive or one other automotive for the household. Whatever be the explanation, a automotive mortgage makes the acquisition simpler. Car loans are normally of three to 5 years however some lenders could provide loans for as much as seven years too. A mortgage for longer could imply smaller equated month-to-month instalments (EMIs), which makes the automotive appear extra reasonably priced, however total, you pay extra as curiosity. Don’t overlook {that a} automotive is a depreciating asset, so taking a much bigger mortgage will not be one of the best factor to do. But if you happen to take a automotive mortgage for a brief length, the EMIs will likely be heavy and non-payment will imply a blot in your credit score report. Conditions apply to the mortgage quantity additionally. For occasion, some lenders give a mortgage for the complete ex-showroom value of the automotive, whereas others could provide a mortgage as much as 80%. Apart from the rate of interest on a automotive mortgage, additionally check out the relevant processing price and different costs.
View Full ImageA mortgage for longer could imply smaller EMIs, which makes the automotive appear extra reasonably priced, however total, you pay extra as curiosity
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