Consider approaching your bank for a car loan but also shop around.
Avoid taking a car loan from the dealer. The rate offered may not be the best.
Remember the 20/4/10 rule of car shopping. Pay 20 per cent as down payment, take a four-year loan, and ensure that the EMI does not exceed 10 per cent of your monthly salary.
Balloon payment is increasingly becoming an option dealers push, where there may be no down payment, or the EMIs may be smaller in lieu of a large payment at the end.
The total interest cost of such a loan tends to be higher.