About New Car Loan:
New car loans are offered to customers who wish to purchase a brand new car. There are a number of banks and NBFC’s that offer car loan for purchase of a new car at attractive rate of Interest, low EMI options, etc. There are so many leading banks and so many offers the moment you step out of to buy a new car for yourself that it may look like a tough decision to make when it comes to grabbing a new car loan deal for yourself. Therefore, getting acquainted with features of car loan will help you grab the best and suitable New Car Loan deal to drive your dream car home
The banks offers loan amount upto Rs.12 Crores for purchase of your brand new car. However, the amount that the banks offer for purchasing a brand new car depends on your eligibility to borrow a car loan. You can check your eligibility to borrow a new car loan at Letzbank portal. Remember to also check our credit score for free at Letzbank so that your application does not get rejected due to low credit score and lack of credibility to re-pay. Keep in mind that a poor credit score can always be improved by making use of expert services of Experian through Letzbank portal.
Rate of Interest:
When you purchase a new car the interest rate at which the banks offer you the car loan is relatively lower owing to the fact that there is lower risk associated with a new car, lower depreciation value etc. You can easily borrow a new car loan at rate of interest ranging from 9% upto 16% per annum.
You can borrow a new car loan for loan tenure upto 84 months as per your convenience. You can also choose to borrow car loans for shorter tenure if you can afford a little higher EMI as it will help you save on the interest cost in a long run.
Processing fee is the fee charged by the bank to process your new car loan. Some banks offer New Car Loan at NIL processing charges; some banks charge processing fee on a percentage basis i.e. some percentage of the cost of the vehicle which does not exceed more than 2% of the cost of the vehicle, whereas the others have a fixed processing fee that is charged by the bank to processing your loan amount. The criteria to determine the processing fee is solely decided by the bank which is offering you the loan.
There are banks who levy a penalty if you wish to close your loan in the middle of the loan tenure; however there are others who do not levy a penalty if you wish to process the loan at any point of time during the loan tenure. Fore-closure charges do not exceed more than 5 to 6% on the outstanding amount of the loan. It is advisable to always compare and apply for loan deal when you want to purchase a new car. You can visit Letzbank portal to search, compare and apply for a New Car Loan and also get benefited with a waiver on service fee. You can also make use of document locker to e-save your critical documents on the portal and protect yourself from identity theft.