Car Finance is an easy way to get finance for your dream car. You can get desired amount to purchase your car and you have to repay this amount in a particular time period. With the attempt to lure more and more consumers, banks and NBFCs are introducing more and more financial products. Different kinds of customized car loan products are available in the market, that are specially designed to suit different needs of the borrower.
Different products of Car Finance like HDFC Car Loan, Tata Capital Car Finance, SBI Car Loan etc have different options for the repayment of the loan. Most of the consumers don't know about the methods available for the loan repayment.
Here are the different schemes that are available for making repayment of auto finance:
It is the most common method of repaying the amount. Mostly customers avail this scheme as they are not aware of the other schemes. In this scheme, a person pays a fixed amount as an EMI every month, in the beginning or in the end. The interest rates are lower as compared to other options.
Step Up EMI’s: In Step up scheme as the name indicates, the EMI increases gradually during the tenure as the repayment progress from lowest in the first year, that steadily increases after that.
Step Down EMI: Unlike Step Up EMI option, the EMI reduces gradually that are highest in the first year. It reduces the burden of a customer for the next coming years.
Balloon EMI’s: This scheme is for the customers who can periodically repay the large installment on their car loan. It allows customers to repay a fixed amount at periodic intervals, either it is 11-1 or 1-11 for the tenure of 1 year. It means the customer will pay either 11 smaller first and then 1 larger installment or 1 larger first and 11 smaller installments later. The whole calculation is like the structure of a balloon. If you will pay larger EMI first and then smaller EMI, you will earn the profit. But if you will pay smaller first, then larger, you will pay more in the end as compared to the normal loan scheme.
Each consumer has a different set of financial considerations based on which the consumer can find the most suitable option for his car finance. A person must have a thorough knowledge of various opportunities available in the market.
Car Loan is no more a "Pie in the Sky". These flexible repayment options have made it simple and easy for the customers. You can repay the amount in the way you want. Dialabank is here to assist you in getting the Best Offer. Apply online to get an unbiased advice from the Car Loan Experts.
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