New Delhi, Auto Desk. The second biggest purchase a person makes in their life, apart from buying a home, would probably be a car. To buy even the cheapest car, one has to spend at least three to four lakh rupees and it is not necessary that a person has that much money all the time. That is why, a large number of people take a loan to buy a car. These loans are provided by banks as well as NBFCs. However, if a person wants to take a car loan, then it is very important that he knows a few things first.

CIBIL Score and Repayment Ability

To take a loan or any kind of loan, the most important thing is that what is your CIBIL score and how much is your repayment capability, before giving a loan to any person, the bank checks the CIBIL score and repayment capability only after that. The process starts, that’s why if you are planning to take a car loan, first of all check your CIBIL score and if you are confused about the repair capability, then tell that it is called repayment capability, it means that you have taken the loan. How much capacity do you have to pay

Loan tenure and EMI

When you are taking a car loan, choose its tenure very carefully and also choose the EMI very carefully. After taking a very long term loan, you may feel that you could have repaid it in less time but due to the long term loan, you have to pay more interest. In such a situation, decide in advance how long you want to take the loan. Apart from this, keep the EMI of the loan according to your budget. If the EMI is more than your budget, then you may have to face trouble in paying it.

Keep documents ready for car loan

If you are looking to take a loan to buy a car, then you should keep some documents ready, which you will need for the loan. These include photo ID, age proof, address proof and six months’ bank statement. Apart from these, copy of last 3 months salary slip, income tax return or Form 16 if you are salaried and copy of income tax return for last 3 years if you are self-employed and CA certified/audited balance sheet of last 3 years etc. would need.

Edited By: Atul Yadav