Several banks and non-banking financial companies (NBFCs) offer a variety of car loans. With the wide range of options available it’s common for the average user to feel overwhelmed. Where and How to apply? How not to end up messing up the loan approval process? These are a few questions that arise in the mind of a borrower.
But what should you do to ensure that you get the application process perfect when you apply for a car loan? Read on to find out.
1. Pay off your credit card bills and other loans
Unsettled bills are a big no-no for a majority of the lenders. Lenders are reluctant to provide loans to borrowers with a track record of poor payment. So, before you apply for an auto loan, make sure to get your credit history right. Pay off all your unsettled bills and check whether your other loans EMIs are on track.
2. Choose a car that fits your income
Lenders decide on a car loan approval by looking at the total price of the car you have chosen and checking whether it fits your income or not. To guarantee quick and hassle-free approval, do the match before you decide on the model and make. You can take advantage of online car loan calculators to help you with this.
3. Double check your documents
Make sure you submit all the documents required by the loan provider on time. This includes a proof of your identity, age, residence and your income source. Also, you’re required to provide two passport size photos. Check if you have submitted all the necessary documents.
4. Opt for pre-approved car loans
While this may seem counter-intuitive to the steps mentioned above, a pre-approved loan on cars basically means you get the loan approved before buying the car. This helps you to have peace of mind and you can pursue your vehicle shopping without being worried about the finances. Also, it ensures that you stick to your initial budget. This is because, for pre-approval of car loans, you have to specify the amount you are seeking.
5. Get expert help
Even if after following the steps mentioned above, you aren’t sure about the outcome of your loan application then it’s time to seek expert help. You could contact any local financial expert, or you could avail of financial expertise of Volkswagen Financial Services if you are on the lookout to buy a Volkswagen Group car.
Volkswagen Financial Services guide you at every step ensuring that you follow the right steps to help you through the car loan application, approval process and beyond it. Follow these simple steps to make the car loan approval work in your favour and drive your dream car.