An employee of a software company will have the luxury of a lower rate of interest for a car loan, compared to his counterpart in a manufacturing company.
If he is earning a salary of around Rs 3.5-4 lakh, the deal gets even better and will get the best car loan option in the whole car loan market. Even the lenders will be fighting among themselves to finance and provide him with best car loan option. He need not pay the customary penalty for a pre-closure of the best loan.
Car finance industry sources say that car model and tenure determined the interest rate earlier even if it is the best car loan option. Now, other things also influence the list. For instance, you can even walk away with 100 per cent finance, if you have a high-paying job and own a house.
"Interest rates on car dived to 7-8 per cent," says a source at ICICI Bank. As a result, 90 per cent of cars sold at present are running on loans. A city like Bangalore disburses loans worth Rs 100 crore, on a monthly basis. The picture is expected to get even bigger in the coming years.
Look out for these Key Best Car Loan Features
- Is the Borrowed amount includes the full cost of the car (including stamp duty and dealer delivery)
- Is there any monthly account keeping fee if yes discuss it with the lender.
- Loan terms of 1 - 5 years (with 6 monthly intervals available)
- Fixed interest rates and set repayments to help with budgeting
- Choose weekly, fortnightly or monthly repayments
- Insurance to finance your loan repayments if you can't
