The things that the consumer must remember while he is out to shop for the best suited offer of auto loan are as follows-
a.)
Looking out for a lender- the
first thing that the consumer needs to do is actually find a lender of such
loan. There are numerous banks, companies, institutions, private lenders and
also many online lenders, who offer to provide loan to the consumer. Since the
start of internet, providing a huge platform, it has been really easy to find
the right kind of dealer.
b.)
Estimation of an EMI- what the consumer of such loans must
be looking out for is the EMI that he requires to pay every month as fixed
under the contract with the dealer. The individual should check whether the
amount of EMI is affordable for him, whether or not he can manage to pay out
that amount from his salary. He should not be attracted to the easy interest
rates, fixed by the dealer to befool the consumer. The consumer is needed to
repay the amount of loan in equal installments every month and then his monthly interest is decided on
the balance remaining, to be paid, and not the entire amount of the loan.
c.)
Fees involved with processing and other petty things- there
are various fees related to the loan that the consumer of such loan needs to
pay, fees for the processing of such loan is a major preliminary expense. The
fee is charged on the amount that the individual has applied for and not the
amount that he has been sanctioned. These charges are usually not fixed but is
variable and changes with the policies of business of the lender.
d.)
Penalty fee- the consumer must look out for a lender who
does not charge any kind of penalty for pre-payment of such loans. Because this
can be more of a hassle to the consumer and would create problems in his paying
back of loan by unnecessarily increasing the amount of money that he needs to
pay back for the loan.
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