Plenty of individuals dream of owning a car. However, with the possibility of increasing and additional expenses makes it difficult purchase a car. But the availability of a loan, such as a car loan, will make this purchase easy.
But like any other loan, there is a considerable difference it the loan amount you will apply for, and the loan amount you will get. With the right financial profile, you can get at most 80 to 90% of the value of the car, as the loan amount. You can even get 100% if you only take the right measures.
Here is what you need to do to get a full funding for your car loan:
Get the optimum credit score
Like any other loan application, your credit score will play an important role in determining your eligibility and loan amount. This credit score is a valid proof of your financial stability as well as your financial history. A good credit score of over 650 will get you an affordable loan. However, a credit score of more than 750 gives you a higher chance of getting a full funding for your car purchase. Since most cars have a value of more than ten lakhs, a full funding by a financial institute may be a risky investment.
Therefore, these financial institutes would opt for a credit score that is nearly perfect, in order to reduce the risk of the loan applicant, from defaulting on the loan. In order to get the best credit score, you can start planning for it, as soon as you start earning. Taking credit or debit cards with small limits will help build your credit score over time, to near perfection. Alternatively, you can take measures to eradicate errors from your credit score, which in turn can affect you loan application.
Approach the right institute
Apart from the credit score, the right institute will also provide you with the best loan options. For a car loan, you can always approach a bank, financial institute or even a dealership for the best loan. You will need to check their individual requirements and offerings. Do enquire about the requirement for a full funding if possible. As most institutes or dealerships will find a full funding as a risky investment, there will be plenty of criteria you will need to satisfy. Having a previous relationship with the institute will help you get a better chance of a good loan. Additionally, if you are opting for a car model that is considered a low risk by the institutes themselves, then you will have a higher chance of a good loan deal.
Your own finances will play an important role when it comes to this kind of car loan. In order to suffice a full funding, you need to have the required financial income to support it. This would include a steady and high income.