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Car Loan Guide India

Car loan is perhaps the most common and standard loan available in the market. Unlike home loan where approval is subject not only to your financial eligibility but also the property that you are buying, a car loan is mainly subject to your financial eligibility.

If you are planning for a new car and/or car loan, there are a few important things that you must know for better decision-making.

Car Loan Pros and Cons

Pros of a car loan

No charge on prepayment. This allows you to prepay principal (apart from regular EMI) whenever you have surplus money and thus close your loan ahead of time.
Attractive interest rates. Currently (2021) car loan interest varies from 8% to 9.5% per annum. This interest rate is way too high for western countries like USA etc. where interest rate remains below 2%, but for India it's an attractive interest rate as the personal loan interest rates still fall between 11% to 18% per annum.
If you are availing car loan from SBI, you can get an unrestricted online prepayment facility, so you are free to prepay any amount anytime from anywhere and instantly reduce your principal outstanding and close your loan faster. Some other banks and financial institutions also offer online prepayment for car loan like ICICI, HDFC but with certain restrictions.
Almost 100% finance options are available including RTO charges. So you don't have to pay anything from your pocket as down-payment upfront.
Loan tenure up to 7 years. No lower limit as prepayment is usually free, so you can start with max tenure of 7 years, but choose to close loan earlier as per your financial changes.
Major car loan lenders in India are - SBI, ICICI, HDFC, AXIS etc.

Cons of car loan,

You pay car loan processing fees and taxes.
Your car gets hypothecated on the name of loan lender. Car RC (Registration Card) also mentions the hypothecation information.
Until hypothecation is removed, you won't be able to sell your car or perform any change in registration information.
To remove hypothecation, you need to clear loan, collect NOC (No Objection Certificate) from the lender and apply to vehicle registration office (RTO) to remove hypothecation and to issue new RC. Overall it's a tedious process and may not be worth it if the loan amount is lower - better you first accumulate full amount and then buy car with 100% down-payment.

Car Ownership Cost

There is a saying in Indian Sindhi Culture "Car palad maane haathi palad" which means owning and maintaining a car is as costly as owning and maintaining an elephant!

You have to account for the space car takes for parking, car insurance, car PUC (Pollution Under Control), service and repair cost, running fuel cost.

Though owning a car is an expensive affair, there are tons of advantages that car offers. Owning a car has already slid from luxury to necessity in most parts of the world.

Check out the video below which explains the car ownership cost and, advantages of owning a car and the verdict.

Car Air Perfume Guide

The very first accessory or the add-on people choose is the car air perfume. Car perfume is really needed in a car; otherwise, the car may smell bad within a few days of use.

There is a variety of perfumes available in the market and it's difficult to choose the right one as a beginner. By variety I don't mean the fragrances but the designs and brands.

Checkout this user review video which explains various types of car perfumes and the pros and cons in detail. This will surely help you find the right car air freshener.

Car Door Visors

This is often the second accessory people consider after the car air perfume. Car door visors are also called car window visor and car rain visors.

There are a few advantages of having car door visors, but yes there are a few disadvantages as well. Check out this detailed video covering user experience of opting car door visors.

Learn to Drive Manual Transmission Car

If you want to learn to drive a car then the only way is to practice. Learning car is more like learning dance. You cannot learn dance by just studying it, you need to practice to become a dancer.

So does car learning require only the practice? and no theory! Nope, it does require theory as well, but just a little. Car is a big machine, and to operate such big machine requires reading user's manual and understanding the fundamentals, otherwise you may make a mistake and a mistake with car like monster machine can be dangerous for you and others.

Check out the video below and follow subsequent videos in series. These videos will clear all your fundamentals about car, especially the brake, clutch, accelerator, gear etc.

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