5 things to keep in mind to get competitive car loan interest rates

Buying a new car is not just a purchase. It feels like a milestone. It may be your first big achievement after years of hard work. Or maybe it is an upgrade for your growing family. However, a car costs a lot of money. Most of us need a car loan to make this dream come true. While getting the loan is great, the interest rate is what you must watch. If the rate is high, your monthly budget might get tight. Securing a low rate is like finding a great discount on a big purchase. It makes your monthly payments easy and keeps your wallet happy.

5 simple tips to get better interest rates:

Lenders do not give the same rate to everyone. They look at your profile first. If you prepare well, you can avail of a better deal. Here are six things you should do:

1. Keep your credit score high: Your credit score is like your financial report card. It tells the lender if you are good at paying back money. A high score means you are a low-risk borrower. This usually leads to a lower car loan interest rate. Always pay your bills on time to keep this score healthy.
2. Pick the right loan term: The term is how long you take to pay back the loan. Shorter terms often have lower rates but higher monthly payments. Longer terms make monthly payments small, but you pay more interest over time. Choose a duration that fits your monthly salary.

3. Pay more upfront: If you can, pay a larger down payment. When you pay more at the start, you borrow less. This reduces the risk for the lender. This might result in availing of a better car loan deal.

4. Borrow only what is needed: It is tempting to buy the most expensive model. But remember, a bigger loan means more interest. Only borrow the amount you can easily repay. A smaller loan is easier to manage and helps you stay debt-free faster.

5. Show a steady job: Lenders prefer stability. If you have been in a steady job for a long time with a regular income, it proves you can pay your EMIs every month. Keep your salary slips and bank statements ready to show your financial strength.

Why choose a Bajaj Finserv New Car Loan?

Finding the right partner for your car journey is important. The Bajaj Finserv New Car Loan is a great choice for many Indian buyers. It is designed to be simple and fast. You do not have to wait for weeks to get your car. Whether you want a small hatchback or a big SUV, Bajaj Finance has you covered. The focus is on making the whole process stress-free for you.

Here are the key features of the Bajaj Finserv New Car Loan:

• Up to 100% financing of the on-road price: A car has many extra costs, like road tax and insurance. This loan can cover everything. You might not need to pay a huge amount from your pocket at the start.

• High-value loan: You can get a loan from Rs. 1 lakh up to Rs. 10 crore. This gives you the freedom to pick any car you like, from basic models to luxury ones.

• Flexible repayment tenure: You can choose to repay the loan over 12 to 96 months. This flexibility helps you pick an EMI that does not hurt your monthly savings.

• Simple eligibility and minimal documentation: Nobody likes too much paperwork. The process here is quick with very few documents required. This means you get your car keys much faster.

A car loan is a smart way to buy your vehicle without spending all your savings at once. By following the tips above, you can get a better interest rate and save money. Planning early and choosing a trusted lender makes the journey smooth. Once you have your finances ready, you can drive your new car with a big smile and no worries.

Are you ready to drive your dream car home? Visit the Bajaj Finserv website or download the app today to check your options and apply for a loan.