Auto Loans

Auto loans ,the best place to get a car loan is from the car dealer. The bank that has tied up with the car dealer usually has the best deals on that particular car manufacturer. Be careful though, some car dealers will get your loans sanctioned from the bank, take the money (or get the bank to disburse the loan to them) and then just wait for you to order the car. Moreover, the price that they charge for the car is the price on the date of delivery. So watch out if they offer you a huge discount when you go to buy but don't give it to you on the date of delivery. Get any discounts offered in writing and make sure they will still be applicable on the date you take delivery of the car.

Generally, public sector banks offer lower interest rates, but most car buyers are put off by the paperwork and inefficiencies at these banks. Many foreign banks will also give you lower interest rates if you have a relationship with them, such as a bank account or a credit card. But if you don't qualify for the loan, try auto finance companies who will usually eat up your arm and a leg in interest charges before giving you a loan. If you plan to buy a second hand car, getting a loan to buy it may be tricky. A few foreign banks will extend a loan for second hand cars but the interest charges are so high as to make the car not worth it. Some finance and leasing companies will also give you a loan for such cars, but the interest rates are sky high.