How to get Bank Loan for Car – AccountWalkOnline
Don’t have your own car. ? Looking for Bank Loan for Car in Pakistan. ? Then you are right place to get the best and most possible terms that you need to know to for acquiring a loan. Yes, we know that having your own Car has become the most necessary in today’s life to travel from one location to another. If you budget don’t allow you buy the Car at full cash then you don’t need to worry about this. Around the world, almost all the Bank’s serve for Car Loan with their own terms and conditions and with alt least 30 – 50 % of down payment of total.
Here, we will let you know the complete details of Bank Loan for a Car, there are many services of loan beyond the Car. For example, Home loan , Education Loan etc but here we will specifically discuss about the Car Loan only. Buying a Car at Bank loan is highly appreciated in Pakistan because around 40 – 60% cars purchased in Pakistan are on Bank Loan. So Here bank’s vary according to their conditions or markup that best suits to the buyer. As per State Bank of Pakistan the agreed rate of Markup are from 7.5 % – 8 % but fewer claims as low as 1.9% (hidden conditions)with initial payment of 50% (that will be not added in markup).
Should We Compare Car Loans Conditions before getting it.?
If you are thinking about to get the Bank Loan for a Car then it is always recommended to have a compare sheet for you against all Loan Lender (Bank’s). This will not only help you to understand the best suitable option or markup of a bank but also helps you in paying back with agreed time period. Time to pay back the loan with markup may be up to 5 – 7 Years maximum.
As we have already mentioned that there is a wide range of car loan facilitator available in the market but only challenge is to choose the best suitable option for you. That meets your requirements.
Though you will find on Loan Comparison on AccountwalkOnline.com, and addition to this you will also be able to find some more and hidden condition of Bank’s. Information that you find will be including Interest rate, payback average rates that will be on monthly basis. This is really going to be an helpful information to make a quick and wise decision from best of all.
Ready to Apply a Bank Loan for Car:
Whenever you want plans for a car at Bank Loan. You need some financial information that will help you if your application for a loan will be accepted meeting the Bank Criteria. You must be also ware of that Car loans plays an important purpose but borrowing loan money should be done in professional way as you have to payback monthly installments.
Addition to above, your credit directly proportional to your monthly income determines whether application meets the criteria or not for a loan. Your credit is always your history of borrowing from other lenders – have you borrowed before from any lender, and did you repay those loans well in time or not. What is your Credit Score that will help you get a lower Interest. In other terms you have to pay less for your vehicle loan than others.
Followings check should be assured.
- Review your credit: You should make sure that you have checked your credit history before you apply for Car loan. Normally all consumers are entitled to get a free credit history under federal law. Just ensure that your credit history looks as positive. Because your lenders will purely make their decision on your Credit history score. Just remove errors if any from your credit report before you apply.
How much should you spend on a car.?
You should get a clear idea of how much you should spend on a car, considering the down payment and monthly installments. Just because if your monthly payments are manageable doesn’t mean it a smart idea to let a $10,000 to $20,000 car loan. Keep it one of the biggest investment so think accordingly. Following checks should be done.
- Your Loan Down Payment – It’s an up-front payment that you have to pay before getting Auto Loan. Usually it depends on lender policies but basic formula for down payment is that “larger your down payment, the smaller your monthly payments on your loan.
- Your monthly payments – These are the regular monthly installments of that you have to pay for years for which loan granted. This should be kept at comfortable level because no one knows when things are going to be changed.
Think Broader – Look at the Big Picture
Before you go ahead for any loan you must actually understand how loans work. Make your self prepared to make this decision. Don’t do it in hurry just make it wisely. When buyer of a car looses , they usually fell under below two traps…
- Targeting on Monthly Installments – Opposed to actual cost + Total cost after applying Interest.
- Filtered Vision – Buying of unnecessary Loan or feature of Car that don’t fit to your requirement.
A deep focus on monthly payment is required while deciding, that how much you can afford afterwards. Unfortunately, your monthly payment can easily be changed – but it will make the loan last longer.
Also making lower down payment may feel you happy today but it directly impact on the loan interest. Just take care if it that you’re buying a car that you can truly afford it and also avoid undesired requirements.
Tip: Always pay at least 20% for a down payment and get a loan for five years or less than five years.
Shop Around Before Making it Final:
It is often overlooked but its most simpler. The key point here is that you don’t have to get auto loan from the dealership. Just make a check with a credit union, any bank, online lender, or P2P lending sources. It most cases it will let you to help in getting the best offer for an auto loan.
You can also consult with an alternate lender before you take final step. If you make yourself well equipped with complete knowledge from all the above resources, it will assure you to gain more bargaining power.
How to Evaluate Insurance:
Many of lenders offers about life insurance when you go for an auto loan. Don’t take this as their kindness it’s an art of marketing to sell any additional services along with Auto Loan. Insurance helps to cover your loan payments, but it’s rarely a good deal to get credit insurance with your lender. You have to evaluate your existing life and disability insurance policies that you own as an individual or through your employer.
Last but not the least thing that you need to know as it can lead to some unforeseen circumstances. While you borrow bank loan for car, your lender is always protected. They can repossess your car in case you stop or even don’t pay your monthly payments. So you must focus on protecting yourself and your loved ones.
Hope this article helped you a lot before borrowing a Car loan. If still there are any other queries you may ask us in the comments sections.