Getting a car is like a lifetime achievement to any middle class family. But due to certain constraints, buying a car becomes difficult. In this scenario, one can rely on CAR LOAN in order to fulfill the most awaited dream of buying a car. Car loan is the easiest way to reach the dream, if one is duly qualified for it.

**What does a bank consider before giving a CAR LOAN?**

- It looks into the ability of the person as to how the debtor would be able to repay the loan.
- Then it verifies the intent of the debtor to repay the loan.
- The bank also looks into the contactability of the debtor.

In the first case, the bank wants to know whether the person is able to repay the loan. For this, the bank may ask for a set of documents in the form of income certificates, property certificates etc. This will ensure that the bank does not go into bankruptcy. In the second and the third case, the bank looks for address proof and the conduct of the debtor based on the previous loan history. If all these demands are satisfied, then one can easily get a CAR LOAN at desired rate of interest.

**What to do after one is qualified to get a CAR LOAN?**

First of all, get to know about the loan details in various banks. Do a good amount of research about the interest rates that each bank is ready to give to a car loan. Then get to know about the processing fees, nature of rates (fixed rate or floating rate). Then shortlist the banks that one is interested to take loan from or choose those banks that are close to one requirement. One must be careful here as change in at least one percent rate of interest, may cost ₹10,000 – ₹15000 difference.

**Calculating the loan and choosing a Car**

After zeroing on a bank, then do a financial analysis about the requirement of the amount one would like to take for a car loan. Also calculate as to how much monthly obligation that one can bear to repay the loan in installments. Last, but not the least, is to explore or research about the car that one would like to buy. It matters a lot, as it is the deciding factor about the principle amount that one would take from the bank. If in case, one is interested in taking a used car loan, then one must be aware that usually, banks charge higher interest to this than to a new car loan.

Therefore, in order to get an assured car loan, one must make sure that the above criteria and requirements are fulfilled. This will help one to achieve the dream of buying a car.