Owning a dream car is the best feeling in the world, but finding the right vehicle that fits your budget is not as easy. Apart from buying your dream home, your car might be the most expensive purchase you will make. Thus, you must consider used car loan in India rather than a new one.
For acquiring the loan, you must consider the associated charges, indirect expenses and depreciated value of your car. A used car will help you to make a good deal without compromising on the quality.
Nowadays, the used-car market in India is booming due to the ready availability of used car loans. According to reports, the number of used cars increased to 4 million units annually. On the other hand, automotive companies have amplified consumer’s demand for used cars by providing them with well-maintained and certified used vehicles.
Why do you need to consider used car loan in India?
A used car loan can help you to buy a pre-owned car without any additional cost. You can avail affordable rate of interest. Besides, the loan repayment tenure is also flexible, and the loan can be availed up to 90% – 100% of the car’s value. Used car loan in India is the best option for salaried and self-employed professionals.
Benefits of getting a used car loan in India
The cost of a used car will be lower than that of a new vehicle, which means that the value of the insurance will also be reduced. The borrowed amount is even more economical along with the flexible terms of repayment. Apart from these, you can avail many advantages by acquiring used car loans in India.
- No collateral
You don’t have to put any deposit against the car loan. Your car will be considered as security with the bank. In case you failed to make any payment, the bank has the right to possess the vehicle and sell it off to retrieve the funds.
- Lower rate of interest
Many money lenders offer a flexible rate of interest for the used car loan. You can quickly negotiate the rate of interest with your lender if you have a good credit history and a good relationship with the money lenders or banks.
- Easy availability
With the increasing demands of used cars, many money lenders and banks are offering used car loans to lure customers. The loan to value ratio will be lower than the new car loan, which makes it more accessible for the buyers.
- 100% loan value
Most of the money lenders and banks offer a borrowed amount up to 100% of the car’s valuation. You can check your eligibility and loan valuation with a used car loan calculator. So, you don’t have to wait to buy your dream car, as you can buy it as soon as your loan is consigned.
- Flexible tenure
You can opt to pay through post-dated payments or the auto-debit finance facility from your bank. Check your flexible tenure with the help of used car loan EMI calculator. The EMIs will be automatically deducted from your bank balance. You can get up to 7 years of tenure and can pay EMIs as per your convenient on a regular basis.
- Floating rate of interest
You can choose the fixed or floating rate of interest. The interest rate will be depending on the type of interest rate you are selecting.
- Minimum paperwork
For acquiring the used car loan, the entire process can be initiated on the online platform. The only paper that you need to submit is the application form at the local branch. The document requirement is also fundamental and minimum, simplifying the entire loan process.
Are you eligible for a used car loan?
Applying for a used car is as convenient as applying for a personal loan online. Here are some steps to follow for acquiring used car loans in India.
- Check your eligibility criteria with the help of online used car loan sites.
- According to the NBFCs, your minimum age should be 21 years and maximum of 60 years.
- You must have a minimum salary of ₹21,000 and at least one year of experience in your job.
- You must have verified documents and your credentials.
After you meet all the eligibility criteria, and once your financial lenders confirmed all documents, your loan can be consigned to your car dealers, and you will get your dream car afterwards.
Graduated with MBA to enriching experience in business planning.
