Features and types of car loan

Features and types of car loan

Nowadays, it has become very easy to buy your dream car because car loan is available for you whether you are a salaried person and a self-employed professional.  Lenders of Coop bank are giving multiple options so that you can easily avail a car loan which suits your needs. It is a kind of personal loan but it is mainly designed for buying vehicles.

Documents required for a car loan:

  • Identity proof: PAN, driving license, passport( any one)
  • Income proof: Last salary slip, bank account statement of last six month
  • Residential proof: Electricity bill, phone bill, ration card, voter’s id(any one)

Different types of car loan:

  • Secured: Secured loans give better interest rate. In this type of loan, you have to give collateral in a form of security to get the car loan that minimizes the risk of the lender. The collateral can be in any form like your house, business etc.
  • Unsecured: These are not as common as secured car loans. You don’t have to do any security deposit and the interest rate is slightly high. In this, the car you bought is used as collateral.
  • Fixed rate: The rate will remain constant throughout the loan. So, you can easily repay it because consistent repayment will not disturb you disturb your budget.
  • Variable rate: The interest rate may possibly move up and down throughout the repayment as it has to align with the market. The rate is lower as compared to fixed rate car loan. It is a better option for those who want to change their repayment amount as per their requirement.
  • New car: There are many benefits if you want to have a new car loan like interest rate is lower and the lenders may give you some special rate on certain cars and sometimes they even give you bonus cash.
  • Used car: It has multiple options like it may have low fee, good rates and a flexible repayment period.

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