Other Loan-Related Tips. Generally

Always prefer a floating rate of interest as compared to a fixed rate, which some banks want to offer. A floating rate would come down by a few notches if the economy performs well and you could be one of the beneficiaries of a robust growth. Be on the lookout for a ‘loan mela’ or a ‘loan campaign’ in your residential/commercial area. During this period, bankers tend to be ‘aggressive’ in sanctioning the loan with least delay (as it suits their targets). Further, during this canvassing, processing charges are either minimal or could be totally waived. You could be in for another surprise: a small discount in rate of interest. Banks tend to ‘push’ their third-party products along with the car loan. Resist all pressure, saying that such products need not necessarily perform well. While completing documentation, insist on your copy of the main ‘agreement’ along with a copy of the bank’s sanction. While submitting a loan application to the bank, superscribe on the form the purpose of the loan, to thwart any later attempts by some shrewd bank employee to misuse your application for other purposes (issue of credit card, mutual funds, insurance, etc.). Never put your signature on blank documents. Read the documents well before affixing your signature.