Did you know? By taking an MTO-approved Beginner Driver Education Course at a driving school, G1 licence holders may qualify for a 4 months reduction in the 12-month minimum G1-licensing period as well as a potential reduction in car insurance premiums when buying new or used car either by financing, leasing or through bank car loan.
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What’s on offer? Like any other loan, a student car loan basically offers cash when you need to buy a new or used car, the only difference being that it’s only for college students, and that it charges slightly less interest rate than the usual kind of loan. To apply for a student car loan, one should be able to prove that he is a resident of Canada and student of a university in Canada. The course of study etc may also be required to be mention for the lender. Banks, financial institutions and private lenders offer these loans and the students must carefully consider which party is offering the best deal. Once the loan is sanctioned, you are one step nearer to the vehicle of your dreams.
Further information
College student car loans are available at a lower rate of interest to the students. This way they can repay the loans easily after they graduate and get employment. Students who have a bad credit history can also take up college student car loans. They will be charged a slightly higher interest rate but that can be made affordable by searching through the entire loan deals available to them. After you complete your graduation, there is a ‘grace period’ before you have to begin making the repayment. So, a student gets ample time to seek employment and income before there is any pressure to repay, making the whole thing very convenient.
Caution!
It may seem that getting a student car loan is very easy, but in fact there are many complexities involved because the people applying for such loans are ignorant about the procedure, and often careless. A loan is a serious liability and one should carefully compare the rates of interest being charged by the various lenders. Another thing to note is the terms of repayment-would you like to get rid off the loan by paying large sums over a small period or small instalments over a longer period? The longer you stretch the repayment, the higher you pay as interest. Also, they must carefully read the fine print to look for any hidden costs, which can greatly add to the cost.
The final verdict
A student car loan is of great use to students and a very convenient way of shopping for a car. However, the students must carefully pick a plan, keeping in mind their ability to pay back the amount with interest. Taking a loan is a big step for anyone, so every step, every document must be carefully scrutinized and it’s best if the students take the advice of experts or seniors before finalising a deal.
