Now the availability of loans, the extent to which finance companies are willing to finance your car as well as the speed and simplicity of processing applications makes this a very attraction option. If you are looking at a new car, an upgrade from your present one, or an additional one, now is the best time to take that loan.


Car loans are a large market today. These are being fuelled by both the auto dealers and the finance companies. Candidates with a good credit profile and a willingness to buy a hot new set of wheels will not have a problem in getting their purchase financed.

If you earlier did not have enough vehicles to choose from, you have a plethora now. Every month or two sees a new hot set of options being launched. From a sports utility to a luxury sedan, the market is charged with excitement.

If you think you would like to make that first car purchase or upgrade to one that better fits your status, personality and public profile or want your family to have a second car, now is the time to go for it.

Car loans are going a plenty and there are a lot of great options available with them. From tenures that stretch right upto seven years to attractive interest rates and free add-ons, there is a lot of choice you can pick from.

When you choose a car loan you need to look for the following conditions and options that might be hidden in all that documentation.

Cash discounts versus interest rates : There is a close play between the upfront discount that you are getting and the interest rates. If you take that discount you might end up paying for it over the months through the interest rate variation.

Freebies : While you might be getting a lot of freebies as part of the deal check out the interest rates you are paying to ensure that some of these freebies are not actually being paid for by you.

Pre-closure of the loan : You might just want to close the loan early by paying the balance principal in one or more stages. Since the EMIs (Equal Monthly Instalments) are structured such that you end up paying a lot of the interest in the beginning and the later months have a smaller interest component and a large principal payback, you might not really gain from that pre-closure. Most loans also have a fee for pre-closure or pre-payment of the loan and this might reduce the benefit that you might have from not letting it carry through the whole tenure.

Finally go with a company that you can trust with giving you the best options and being transparent about them. The computation of EMIs is complex and gives a lot of area for the finance company to work out a variety of permutations and combinations and get the best deal for themselves.

MEM will help you through all of this with a clear explanation of what a loan will entail for you and how you can best structure it to come out a winner.