There are roadblocks in auto loans too
While getting a car loan has been an easy affair, given the kind of competition that exists among financiers, there may be occasions when a customer, after getting the approval of the loan, may face a few problems at a later stage. Thus one needs to understand, forecast and be prepared for such problems should they arise so as to protect one's own financial interest.
The approval process of a car loan is relatively simple and should not take more than a week if all the requisite documents are submitted along with an application form. Additionally, agents of the financier as well as those of dealers usually help a customer in getting the papers ready at the earliest.
Common Problems and Remedial Action
Delayed Sanction In certain situations the borrower may need to be prepared for about a week's delay in the sanction of the loan. This could be despite the fact that the bank has already indicated its approval in writing to the borrower.
The dealer will have to be informed accordingly so that car of the desired model and color is kept ready.
Delayed Disbursement After issuing the sanction letter if the financier fails to make the disbursement of the loan within a week's time then the borrower must send out a reminder through a written application to the bank.
In case the bank fails to make the disbursement even after the reminder then one can approach for withdrawal of the application and refund of the processing fee. However, in most cases the banks will immediately correct the situation and make the disbursement. At such a juncture one needs to speak to the bank and ensure that the interest is calculated only from the exact disbursement date.
Delay in Providing Cheque to the Dealer This is yet another problem that may be caused due to an oversight and can cause hassles to the borrower.