Bank Auto Loan Rates | Before You Go For A Second Loan...

Ensure you are not over-leveraged; coming a bank with that you already have a financial attribute may help.

Buying by loans, notably when it comes to houses and cars, is a familiar use nowadays. And, sometimes, all these purchases come about inside of months or a couple of years of any other.

In this situation, before coming banks, a may wish to take batch of their stream debt servicing ratio.

It might seems technical but in elementary terms, it means the money existing with you to service debt. And the aloft your debt servicing ratio, the improved are the chances of securing other loan.

Harsh Roongta, CEO, www.apnapaisa.com, says, "For the salaried with an EMI on top of 50 per cent of their salary, receiving other loan is not a great idea, as the debt servicing skill could be hampered in the future." He recommends feel safe options similar to loans against shares or gold.

A in isolation zone landowner mentioned loan servicing, as a commission of your monthly take-home pay, should not be 40 per cent. The rest is earmarked for monthly expenses.

So, if your take-home income is Rs 1 lakh per month, monthly expenditure Rs 35,000 and EMI Rs 25,000, then you have a excess of Rs 40,000 every month. This financial unfolding is actually cozy for any bank to lend you more. Things can go haywire if your EMI is, say, Rs 60,000 is to same income and you are looking other loan.

Some considerable open zone banks give automobile loans at 1.5 per cent descend than the stream existing rate for existing home loan customers. The motive is since a housing loan is a significantly aloft total than the automobile loan, and both are collaterised with the same bank, the danger may be taken.

A comparison executive with Union Bank says banks moreover find soothe in existing customers since the easy accessibility of information concerning their loan servicing ability.

"Delinquency rates in personal and automobile loans are aloft and hence, an existing customer, whose loan settlement has been seen and whose KYC is done, will find it simpler to obtain such a loan" adds the comparison manager.

If you draw close a bank with no financial attribute in the past, things may not be so simple. They may not be so cozy providing a personal loan since the insufficient of collateral, notably if you are overleveraged. Even in the box of auto loans, the descending realisable worth of the automobile creates many banks uncomfortable.

Yes, there are non-banking financial institutions that give loans. But, the rates being charged are infrequently prohibitively high sometimes.

"From a bank’s perspective, unless it is an simply saleable security, they may be wavering in doling out loans. A automobile loan is only about possible, whilst a loan against gold/shares is moreover easy to secure," says Roongta.

Other options for raising money such as loans against shares come beneath the funds marketplace bearing of the bank. Banks, by and large, lend towards to sustain a 50 per cent border on loans against shares.