look news india
It is a season of festivals and the dream of buying a new car in the mind is gaining momentum. You go to the showroom, choose your favorite car … and then the matter stops at ‘Down Payment’. Giving 10-20% of the price of the car i.e. 1 to 2 lakh rupees simultaneously shakes our budget and we postpone our dream for next year.
But what if we tell you that you can bring home a new gleaming car of your dreams, that too without giving a single rupee down payment?
Yes, this is absolutely possible! In the banking world, it is called ‘Zero Down Payment’ or ‘100% Financing’ car loan. This is no less than a boon for those who are unable to arrange a lump sum.
So how does this ‘magic’ work?
This means very straightforward – the bank will give you the ‘on -road’ price of the vehicle (which includes the price, registration, insurance of the vehicle) Complete 100% Money gives as a loan. You do not have to put anything in the beginning from your pocket, you just take the key and bring the car home.
But wait! The more beautiful this dream is, the more the conditions are hidden in it.
This scheme is not for everyone. The bank is putting its money at 100% stake, so it wants to fully comfort that you will be able to repay his loan.
Who gets this ‘golden ticket’?
- Whose ‘Report Card’ should be luxurious (High Credit Score): If your CIBIL or credit score is above 750-800, you are the most preferred customer of the bank.
- Whose income is strong (Stable & High Income): If you work in a good government or big private company and your salary is good, then the bank easily trusts you.
- Old and loyal customers (existing bank customers): If you have an old and good relationship with the bank (eg salary account or old FD), your chances also increase.
Benefits and hidden disadvantages of this scheme:
- The biggest advantage: Initially you do not have tension to raise large amounts and you immediately become the owner of the car.
- First disadvantage – more EMI: Because your loan amount is high, then every month’s EMI is also larger than the normal loan.
- Second disadvantage – more interest: Overall in the long term, you have to pay more interest.
- Third disadvantage – High interest rate: Many times banks also charge a slightly higher interest rate than normal loan in exchange for 100% financeing.
So is it right for you?
- Yes, if: You do not have lump sum for down payment, but you can fill EMI a little more every month.
- No, if: You want to avoid paying more interest and you may have a down payment.
This is a great feature, but before choosing it, make sure to calculate your pocket and your budget well.