When it comes to buying a new car, chances are that you are going to consider taking a car loan. It does not matter that the car is used or new since there are loans available for both the cars. Car loans allow you to make sure you can pay for the car today and pay it back over a period of up to 9 years in easy to pay instalments. However, sometimes taking a car loan may seem like a daunting prospect especially when it comes to the wait for the loan to be approved and disbursed. The truth of the matter is that they don’t have to be. There are ways in which you can ensure that your car loan application is fast tracked and stands a better chance of getting approve. To that end here are some simple things that you can do to speed up the car loan you intend to apply for.
How to speed up a car loan application
You don’t always need to have a special relationship with a bank in order to have your loan application move smoothly. These are the steps that you should take before you apply for a car loan.
- Know what you want
- knowing which car you want to purchase
- Knowing what the monthly instalment will come to.
- Know if your finances can handle such instalments or not.
- Knowing if the car will actually be financed or not. This becomes more relevant in the case of used cars since most banks might not offer finance for cars older than 10 years.
- Know the eligibility
- Your age.
- Monthly income.
- Credit scores.
- Age of the car you intend to buy (in case of used cars).
- Know the amount you need
- Keep documents handy
- Go to banks that promise faster processing
- Plan well
Knowing what you want is of the utmost importance since it is the one thing that will help you apply for the right loan. Knowing what you want will include
Being able to get the loan will depend on you being able to meet the eligibility criteria set by the bank. Making sure that you are eligible for the loan will help cut down the time that gets wasted in applying for a loan and then it being rejected. Generally, the factors that will affect your eligibility are:
Knowing the actual cost of the car will help you apply for the right amount since most banks will finance either 90% of the cost of the car or 100% of the on road price of the car only. Knowing the cost of the car will include know the actual amount you will need, including the cost of insurance and taxes due on the purchase of the car.
You must always know all the documents that a bank may ask for when processing a loan application. In most cases the banks will require copies of the originals but they can ask for the originals for the purpose of verification. If you don’t have the originals then it will cause a delay because the bank may not process the loan till the originals are produced. They may also need document apart from those mentioned on websites so it is always advisable to speak to them and get the exact list of documents that will be needed.
Many banks offer quick processing times as a USP for their products. If you are ready to take a loan and need the loan in a bit of a hurry, then it would be advisable to go to a bank that will offer you quick responses. Sometimes a bank can finish the approval of a car loan in as little as 2 days.
This is a more of a psychological thing where if you plan your purchase well and allot enough time for the loan and the paperwork to be processed, you’ll feel that things were done on time. If, however, you were to do them at the last minute, and apply for a loan late then you might feel that the bank is taking its own sweet time in processing the loan.
If you do decide to go in for a car loan then these tips will help you make sure that actual process goes smoothly and your loan is processed fast with minimum hassle to you.