Hello Friends, I welcome you all in today’s article. Friends, I will give you information about how to take a car loan. Friends, it is everyone’s dream to buy a branded car along with the home. A car not only makes your life comfortable but also reduces a lot of difficulties. Be it reaching the office while struggling with public transport or going out for a trip on weekends, everything becomes very easy. Earlier buying a car was a big deal for anyone as one had to spend a huge amount for it but now it has become very easy as loans are easily available.
Banks and non-banking finance companies provide car loans in easy monthly installments due to which buying a car has now become very easy; it does not affect your budget and you also get convenience. If you also want to take a car loan then in today’s article we will tell you all the information about it in detail so that you can easily avail car loan. For this you will have to read this article carefully till the end. 
What is a car loan?
A car loan is a secured form of in which a bank or a financial institution lends you money to buy a car and your car is kept as collateral in exchange for this loan. You have to repay this loan in EMIs which include both principal and interest.
How many types of car loans are there?
- Loan for New Car :- Banks give you loan to buy a new car. Generally banks give loan upto 85% of the cost of the car. In this loan your car is kept as pledge with the bank and when the payment is made then the loan can be cancelled by taking a non-payment certificate from the bank.
- Old Car Loan :- Today the bank also gives you loan to buy a car. The condition is that the car should not be more than ten years old. In this way, on buying a car, you can get up to 50 to 80 percent of the car price as loan.
- Loan against car :- If you need money then you can take a loan from the bank against your car. This loan can actually be taken to fulfill any of your needs. In this situation also the bank gives you a loan of 500 to 80 percent of the value of the car. You cannot sell the car until you repay the bank loan.
How to take a car loan?
- To take a car loan you will first have to fill an application form for the car. You can fill the application by going to the bank or at the car dealership here.
- After filling the application form, the loan giving bank has the process of verifying your documents. You have to provide proof of income, identity and address. The bank verifies it and confirms it.
- If the bank is satisfied with your documents and feels that you can be given a loan to buy a car, then your car loan gets approved.
- After that, car loan is issued in your name.
For how much period should one take a car loan?
Generally people take car loan for a period of 3 to 5 years but creditors also take loan for a period longer than that. If you take a car loan for a longer period then you will have to pay lower EMI. If you take loan for a shorter period then you will have to pay higher EMI, hence you should take loan keeping in mind the ability to pay EMI.
conclusion –
Friends, in today’s article I have given you information about how to take a car loan. I have told you the complete information in detail so that you can easily take a car loan while sitting at home and avail its benefits. Friends, if you all liked today’s article then please share this article.