How To Get A Low APR On Your Car Loan

When you opt for car loan in India, the car loan interest rate you repay can be a bit different than the one you calculate on car loan EMI calculator. But, another factor that plays a role is the frequency of repayment. If you repay on annual basis, you will need to consider (APR) annualized interest rate for car loan. A decent annual percentage rate or APR will help you save big bucks. There are several factors that determine the APR for you, so let’s check out the factors that will ensure you will get a low APR on your car loan.

Credit History

Your credit score determines your APR. A good score will give you lower rates while a low score will not give you a good rate. Factors like delay and missing payments in your previous dues will harm your credit score. If you have a good credit score, use the car loan EMI calculator to calculate the ideal car loan interest rate that will suit your need and find out the finance company that is willing to offer you loan at the same interest rate.

Loan packaging

When you are applying for the car loan, you can package it right to receive the low APR. There are factors that affect the APR for car loans in India. If you choose them well, your chances of getting low APR are much higher. For example: The annualised percent rate of the will be lower if you have a co-applicant for the loan. If your co-applicant has a good credit score, the chances are it will benefit the loan offer you will receive and enjoy low APR. However, that is not the only way available. Based on your income and expenses, you can apply for a loan that has shorter tenure. If you are confident that you can repay the loan with the applicable interest rate in short tenure, you can use it to get the low APR from the finance company.

Finance institutes

Compare different loan agreements and the terms and conditions from different institutes. If the APR the organization has calculated is low, your repayments will be smaller and thus can be finished sooner too.

But, interest rate is at the mercy of the finance c organization. So, selecting the right one is vital for the long term. So, select the right one and you will make the repayments quickly and easily.