Last Updated on May 21, 2021 by MoneyVisual
The automotive industry is claiming themselves as the fourth most essential needs of the people, after food, shelter, and clothing. This can be proved from the facts that India is the third-largest car market in Asia-Pacific and stats show there has been drastic growth in the sales figure from 2005 to 2017. Though in 2018 it has been noticed a decline of 2.3 percent of sales figure, this will not be true for 2019 as per the predictions of the industry experts.
But each new car owner does not have the capability to buy a vehicle from their own savings, so they rely on different banks and NBFCs to get new car financing. As per the report of Economic Times, the outstanding loan portfolio has grown by 30 percent in 2018, with respect to Rs 3.59 lakh crore in 2017. Even the average loan size has grown by over 20 percent, from Rs. 4.5 lakhs in 2015 to Rs 5.5 lakh in 2018.
If you want to be one of them, who needs cash to buy a new car, you can get instant auto loan approval.
You Need to Follow Some Steps in the Planning Process, that Includes:
- Choose your dream car
- Check the price of the car
- Verify how much financing you can get
- Evaluate the down payment amount
Once, you are aware of these factors and have verified that the car loan amount matches your income and affordability, you can approach a financial institution to get a car loan. Make sure, you have done the market survey and have researched well before you apply for the car loan.
To make the loan procedure faster, you first need to choose a proper financial institution. It can be a bank or a non-banking financial institution (NBFC), but it should involve quick loan approval in a hassle-free manner.
Instant Car Loan Approval Process:
Step 1: Check the Eligibility Criteria– Make sure the eligibility criteria is minimum and basic. The lender will check your age, income and job stability. You must be an Indian citizen and your age should be above 18 years to get the loan approval.
Step 2: Check New Car Loan Interest Rates– The interest rate is the key factor that determines your EMI value. So, try to get the least possible interest rate for your new car loan, to reduce the interest amount in total. Wherever you will get the least eligibility and least interest rate, you should apply there.
Step 3: Apply Car Loan Online– Your chosen lender should allow you to apply for a car loan through the online application procedure. You just need to fill some basic details online and within a short span of time, maybe 30 seconds, you will get the loan approval.
Step 4: Submit the Documents– You need to submit a few required documents such as age proof, identity proof, address proof, income proof, signature proof, and photographs.
Step 5: Get Loan Disbursal– Once the submitted documents are verified, you will get the money at your bank account within 2-3 working days, without any requirement of physical papers and signature.
Be careful! Don’t act like an obstacle in the way of getting the approval of an instant auto loan.
You can Either Commit the Same Common Mistakes or you can Take Lessons and Avoid them Successfully.
- No Research- This is one of the most common blunders that almost all applicants do while applying for a car loan. Generally, they either visit some local bank or their reliable bank and apply for a loan, without reviewing the other options available in the market. Nowadays, it has become so easy with the help of some online portals that allow comparing financial institutions and choose the best lender. One needs to visit those sites and get a clear report of each lender and then apply for an auto loan.
- Concentrating on Interest Only– The rate of interest plays the most vital factor in the case of any loan, as a slight change in the interest rate can bring a huge difference in the EMI amount and the final repayment amount. Though it is important, it is not the only factor that you should focus on while applying for a car loan.
- Not Reviewing the Credit Rating– People usually plan and start the loan procedure without reviewing the credit history and credit score. You are aware that lenders consider credit score as an important factor while approving the loan application, as credit score reveals your creditworthiness. You need to have a good score of above 750. So, you must check credit score online before processing your loan application, to avoid any rejection.
- Focusing on Low EMI- If you are devoting your attention only on minimizing the EMI amount, then it will be one more big mistake. Making the EMI affordable means you are increasing the loan tenor, which will eventually force you to pay higher interest in total.
- Opting for a Longer Tenor- On the similar lines, you should opt for a smaller loan tenor. This may increase the EMI amount a little, but in the long run, you will save in the interesting part and will pay less amount to the lender.
- Not Shaping your Affordability– You need to review your income from all sources and then apply for a loan. Your loan amount must have parity with your affordability. A car loan will be of 3-7 years, so you need to shape your capacity first and then accordingly plan your loan application.
Hopefully, this has cleared all your doubts and now you are on the right track to get an auto loan approval instantly. Good luck with loan and congratulations on your new car!
Sneha Sharma is a writer currently associated with Droom Technology. She writes about various topics such as auto news, trends in the automobile industry, auto finance, and so on. She has a prominent existence and well participation in different social media platforms.