Key Points
Car loan: Buying a house is a big financial decision, and for many people, the next important one is. buying a car. . Many choose to get a loan to fund this purchase..
Heres a simple guideline known as the. to help you determine the right car..
While many lenders offer LTV ratios of up to 80%, some may provide loans covering the entire 100% of the car's cost...
It's recommended that car loan seekers aim for a lower LTV ratio to find a balance that doesn't affect their liquidity or financial reserves earmarked for important life goals...
It's a basic rule of thumb for purchasing a car with a loan.Allocate 20% of the car's on-road price as a down payment when booking the vehicle.Ensure that the equated monthly installment (EMI) does not exceed 10% of your monthly income.Limit the loan tenure to a maximum of four years.Remember, this rule may vary for each person based on their monthly income and other financial obligations..
