The emerging market of auto sector has created a huge market for car loans. In fact it is estimated that auto loans form one third of the total loan banking in the country. Part of this is because of easy accessibility of car loans by most banks including public sector banks. Buying a car is still one of the cherished dreams of most Indians. To top it all Maruti Suzuki and Hyundai Motors and Tata Motors are making significant efforts to move to smaller cities. In fact, Maruti has plans to spread the network of its dealerships from 600 to a few thousands in the next four years.

Gone are the days when you had to book a car in advance. You can now actually go to the showroom, pay a small amount of cash towards cost of car. The rest will be borne by the bank which provides you a loan. Even used cars get easy finances now-a-days. But what one must remember is that most of the car buyers in India are first time buyer. They will require some general tips before applying for a loan.