Does a car loan require collateral?
When you buy a car loan, the car itself is considered collateral. In some rare cases, you can provide another asset as collateral. If you are unable to repay the loan on time, the lender can confiscate the car/or the asset.
It is also to be noted that the rate of interest offered to you by the lender is dependent on the collateral. Expensive collateral could mean lower EMIs.
- What is the formula required to estimate the EMI?
- What documents are needed to use the car loan EMI calculator?
- How many times can I use the car loan EMI calculator for free?
- Is buying a car insurance policy mandatory for car loan approval?
- How much is the difference between the EMI estimated by the car loan calculator and the actual EMI quoted by the lender?