Step-by-Step Guide to Getting a Vehicle Loan this Diwali

Diwali is a celebration of lights, happiness, and fresh starts. It is a magical time of the year when people embrace new beginnings, and nothing screams ‘fresh beginnings’ like cruising down the road in the brand-new car or bike you have had your eye on all year.

Table of Content:

• Set Your Budget
• Explore the Best Diwali Offers
• Check Your Eligibility
• Get Pre-Approved Loans
• Submit Your Vehicle Loan Application
• Loan Approval and Disbursement

The joy of upgrading your vehicle or getting your hands on a new one during this festive season is unparalleled. After all, the festival of lights is not just about celebrating with sweets and diyas; it is also the perfect time to invest in something you have been waiting for.

During Diwali festivities, most lenders roll out their best offers on vehicle loan, dealerships throw in attractive offers, and you get to make the most of year-end discounts, making it the best time to buy a car or a bike.

The idea of driving into the festive season in style is tempting for all good reasons, but if the loan process has left you feeling a bit confused, we are here to steer you in the right direction and make the entire process hassle-free. Let us begin.

Set Your Budget

Before diving into the excitement of buying a new car or bike, it is important to establish a solid budget for vehicle finance. Purchasing a new vehicle is a significant financial decision, and setting a clear budget will help you avoid overspending. Start by assessing your needs and finances.

Consider your monthly income, existing expenses, and savings to figure out how much you can realistically allocate towards monthly installments for a vehicle loan.

A general rule of thumb is to ensure your EMI is at most 40% of your monthly income so you can manage your other expenses while repaying the loan. While calculating your budget, consider additional costs, such as vehicle insurance, maintenance, registration, etc. This will help you enjoy your new ride without any financial strain.

Explore the Best Diwali Offers

Diwali is one of the best times to buy a car or a bike because of the abundance of offers and discounts lenders offer. Banks, financial institutions, and dealerships are all vying for your attention with irresistible deals and discounts. During this festive season, lenders often offer lower interest rates, making your vehicle loan more affordable in the long run. Additionally, many lenders waive processing fees during this period, further reducing the overall cost of your loan. Hence, compare offers to find the one that aligns with your budget and gives you the best value.

Check Your Eligibility

Once you have scouted the right offer, it is time to check your eligibility for a smooth vehicle loan process. Lenders have specific criteria that applicants must meet, including minimum income levels, employment status, and, most importantly, creditworthiness.

Ensuring that you meet these criteria ahead of time will save you from potential delays and rejections. Most financial lenders, like Muthoot Finance, provide easy online tools where you can check your eligibility. Verifying your eligibility in advance helps you plan better and avoid any last-minute hassles when finalising the vehicle finance.

Getting pre-approved before visiting the dealership can help you strengthen your negotiating power. It gives you clarity on your budget and strengthens your negotiating position with dealerships. When you have a pre-approved loan, you are seen as a serious buyer, which can help you crack better deals or even additional perks like complimentary services.

To get pre-approved, lenders typically ask for identity proof, such as Aadhaar or PAN details, proof of income, and bank statements. Submitting these documents in advance can significantly speed up the process.

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Submit Your Vehicle Loan Application

Once you have selected your vehicle and finalized the vehicle finance partner, it is time to submit your loan application. The loan application process during the festive season, like Diwali, has been simplified to make it as quick and hassle-free as possible.

In the internet-first era, most lenders like Muthoot Finance offer online loan applications, allowing you to apply from the comfort of your home and receive quick approval. A streamlined process ensures you do not waste time on endless paperwork and focus on bringing your new vehicle home more.

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Loan Approval and Disbursement

Once your vehicle loan application is approved, the lender will disburse the amount directly to the dealership. At this point, you are some inches away from getting behind the steering wheel of your new vehicle. Before finalising, choose the right EMI plan that fits your income and monthly spending goals.

Some lenders like Muthoot Finance offer flexible EMI plans that allow you to adjust your repayments based on changes in your financial situation, giving you a sense of financial security and control.

This Diwali, bring home your new vehicle and celebrate the festival of lights and joy in style. With the right vehicle loan, you can create lasting memories by buying a new car or bike that has been on your wishlist. Muthoot Finance offers competitive vehicle loan options with attractive interest rates, easy documentation, and quick approvals that allow you to experience a smooth vehicle loan.

With special Diwali offers and irresistible deals, Muthoot Finance is here to help you turn your dreams into reality. Visit Muthoot Finance today to unlock Diwali exclusive vehicle loan offers and make your festival season even more joyous and special.