Need Loan For a New Car?

September 13, 2021   |   by Mahabuba Rahaman

There are numerous reasons you would want a new car: to improve your family’s comfort, safety, or budget stability. It’s no secret that older automobiles are more expensive to own in terms of green taxes and less dependable, which leads to additional expenditures. As a result, replacing an old car with a newer or brand new and reliable vehicle might benefit the economy. Replacing an old car provides the family budget peace of mind and allows them to budget for things other than unanticipated automobile repairs.

A car loan is a form of financial help that allows you to buy a car with a small down payment from your pocket. You can return the lender’s money in equal monthly installments with an agreed rate of interest over some time. In most cases, automobile loans are secured by the vehicle being purchased. Ikano Bank will provide you with competitive financing for your new automobile that does not demand a down payment.

 

 

What is the purpose of a car loan?

If you don’t have enough funds to buy a new automobile outright, a car loan can assist you to do so, whether the vehicle is new or old. You receive money from a lender to buy a car when you acquire an auto loan. You agree to repay the cash over a certain period, plus applicable fees and interest.

An auto loan is a type of loan that allows customers to buy a four-wheeler and pay it off in equal monthly installments over a defined period rather than paying the entire amount all at once. A vehicle loan’s terms are determined by several criteria based on your earnings and credit history.
Lenders require the borrower to repay their principal and interest in monthly installments (the lender’s borrowing cost, shown as a percentage of the principal balance).