The festive season is currently going on in the country, in which people consider it auspicious to buy a car along with gold, property and other goods. If you are thinking of buying a car this festive season and want to take a loan for it, then we are telling you how to choose the right loan for the car…
The loan should be taken for as short a period as possible; the loan should not be stretched for too long. If you take a loan for a longer period, you have to pay more interest. Today we are telling you the disadvantages of taking long term loan.
Generally, a car loan can be taken for a maximum period of 8 years, but if the loan is taken for a longer period, i.e. 7 to 8 years, then the loan is given at a higher interest rate. This interest rate can be up to 0.50% more than the interest rate of short term loan (3 to 4 years).
If you take a car loan for a long time, then that loan can increase the price of your vehicle by up to 25%. Whereas if you take a loan for a shorter period, you have to pay a lower price in comparison.
If you take a car loan for 8 years, but you want to sell the car only after 5 years, then you will have to repay the entire loan first or transfer the loan to another person. For this you may have to visit the bank.
Suppose you buy a car worth Rs 8 lakh, and take a loan of Rs 5 lakh for it, then how much interest will you have to pay on taking the loan for different periods? What effect will this have on the price of the car? We are telling you this.