For most people, the dream of buying a car is not fulfilled as they do not have enough money. Even if they want to plan a saving amount for the car it will take a long time for them. In such cases, the best option is the car loan you can find many different types of banks and non-banking financial companies who will give you a loan with interest rate. This option is available for both new and used cars in Yakima. You can find three types of car loans and they are new car loans, used car loans, and loans against the car.
- Each bank has its terms and conditions for giving a car loan. There are some criteria’s which the individual should adhere to get the loan. Some of them are if the loan-taking person is a salaried employee then the age limit is above eighteen and below sixty years. In the case of self-employed then it should be above eighteen and below sixty-five years. Along with this, the person should also provide these documents KYC, income documents, and bank statements.
- The loan amount which the bank sanctions depend on the person’s credit score and eligibility. It also depends on the down payment done by the buyer. With the same eligibility, you may get different sanction amounts in each bank.
- The tenure of repaying the loan amount can be decided by the person who is taking the loan. But the period should not be more than eight years and should not be less than one year. It will be the same for both used and new cars the only difference will be the interest rate. The interest rate of the used car will be higher than the new car.
- The equated monthly installment is calculated based on the rate of interest, loan amount, and tenure. You can allow the bank to deduct the amount directly from your account each month or you pay to the bank within the stipulated time. You can pay back the entire loan amount once you complete twelve EMI’s.
Hope this information will be helpful while you are approaching banks or financial services company for loans.