| What is a car/auto loan and how can I get one? |
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| Written by Site Administrator |
| Wednesday, 28 October 2009 06:55 |
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A loan given to you by a bank or a financial institution when you are buying a vehicle such as a two wheeler or a car is called a car loan. Usually, agents of these financial institutions are arranged directly from the showroom from where you want to buy a vehicle. The bank agent will procure the necessary documentation for you and arrange for the loan. Barring a small component of the price that you have to pay as downpayment, the rest can be arranged through banks as loan. When you buy a vehicle on loan, the showroom will be able to deliver your vehicle as soon as the loan is sanctioned on your name. The loan provider (Bank or financial Institution) will keep the original papers of sale of the vehicle as security with them till the total amount of the loan along with interest is repaid. In the event that you default or are unable to pay back the loan, the bank reserves the right to claim ownership of the vehicle and may auction it to recover the loan amount. Comments (0) |
| Last Updated on Wednesday, 28 October 2009 09:54 |