Auto
Popular auto loan lenders to choose from
When you hear words like ‘loan’ or ‘financing’, you instantly conjecture them as complex terms. However, they are not as complicated as you think. Car loans are the easy way to acquire financial facility when you decide to buy your dream car. What is a car loan? Similar to credit facilities like personal loans, an auto loan is an option where you can get money to purchase an automobile. You, being a borrower, lend the amount from a bank or other financial institutions and repay the amount with interest. If you are 18 years old or above, you are eligible to apply for an auto loan and a savings account is required to be opened. Generally, the auto loan is repaid in equated monthly installments (EMIs). Unlike a personal loan, an auto loan is a secured financing option. The fundamental part of a loan is its interest rate and principal. Now, the amount of principal is negotiable and is dependent on the market value of the vehicle. The interest rate is one of the important factors in car financing and you have to pay a certain percentage of interest on the principal amount. At the time of purchasing the automobile, you are required to pay a specific amount of money, which is known as down payment.
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