BOOST YOUR DOWN PAYMENT TO LOWER YOUR EMIS

By

Bankbazaar.com

SAVE UP BEFORE YOU TAKE A CAR LOAN!

The wisest option before taking any kind of loan is have sufficient savings in your bank account to cover the down payments required. How much down payment a customer pays completely depends on his savings and how much EMI he intends to take.

EVALUATE THE EXPENDITURE ON A LOAN USING CAR LOAN EMI CALCULATORS.

The best way to understand how much you would be spending on your car would be to get a forecast of your intended debt using a car loan EMI calculator. This tool efficiently gives a detailed summary on the cost you would incur in terms of interest rates, extra fees and monthly EMIs, depending on your down payment amount.

DO I TAKE A SHORT TERM CAR LOAN OR A LONG-TERM ONE?

Always go for the short-term loan. Though this loan requires that you pay a lump sum as down payment, it improves your chances of saving up and not over-spending on a car loan.

CAN INTEREST RATES BE REDUCED DEPENDING ON THE DOWN PAYMENT?

Banks in India require the borrower to pay some portion of the car loan from their pocket and have set limits on these. The loan margins for borrowers are generally around 10% to 15% of the on-road price of the car. However customers can negotiate on these margins with banks, depending on the down payment they wish to give. Banks generally offer car loans at lower interest rates for customers making higher amounts of down payments and vice versa.

HOW ARE EMIS AFFECTED WITH DIFFERENT DOWN PAYMENT AMOUNTS?

Higher down payment amounts help you take shorter tenures for car loans with higher EMIs. Lower amounts might give you the flexibility of opting for longer terms with affordable EMIs but they will work out to be costlier. But if a customers pay a huge sum of money as down payment, then the remaining loan amount can be easily tackled with an affordable monthly installment.

WHAT WILL WORK OUT BEST FOR YOU?Go for the higher down payment option with slightly higher EMIs at low interest rates. You can pay off a bulk portion of the car price upfront and will also benefit from the short term car loan availed later on, thereby completing your entire debt with no extra costs.

THANK YOU !FOR CHECKING THROUGH OUR SLIDE.

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