Car loan tips: get more from your vehicle financing

A car loan is a secured loan where the vehicle is generally hypothecated to the lender until you repay it. Loans are available for both new and pre-owned cars, subject to lender policies.

Plan your down payment

A larger down payment reduces the amount you need to borrow and can lower your EMI. Decide on a budget for the full cost of ownership, including insurance, fuel and maintenance, not only the monthly instalment.

“Compare the total cost of the loan, not just the monthly EMI.”

Compare before you sign

Look at interest rates, processing fees, tenure options and prepayment terms from more than one lender. Keep your identity, address and income documents ready, along with the vehicle quotation.