It’s a wonderful sensation to get behind the wheel of your vehicle. Finding the appropriate car that meets your budget and objectives, on the other hand, is no easy task. Your car, aside from a home, is perhaps the most expensive choice you make. As a result, buying a used car instead of a new one makes sense. This is especially true when considering the associated fees, expenses, and depreciation value. A used car loan can save you money while also allowing you to avoid sacrificing quality.
Used car loan: Benefits and why you should go for it?
Because of their affordability and the ease with which used car financing is available, India’s used car market is thriving today. According to surveys, for every 100 new automobiles bought, 220 old cars come into the market for resale each year, totaling roughly four million units. Furthermore, the introduction of organized firms into the market has increased people’s preference for used automobiles by ensuring that they are licensed and quite well.
Would you like to acquire a used automobile without having to deal with a lot of hassle and expense? This is when a used automobile loan can come in handy. Even if you have a limited budget, you may now easily achieve the status of automobile owner because it is a much more cost-effective option than buying a new car. A used car’s deterioration rates, including its insurance prices, are lower than those of a new car.
A used car loan is easy and convenient to obtain. First and foremost, make sure you meet the eligibility requirements. Most NBFCs want you to be between the ages of 21 and 65, with a minimum monthly income of INR 25,000 one and a year of work experience. You must also send documentation for validation of your credentials in addition to the application form. The loan will be assigned to your car dealer once it has been settled, and you will receive your vehicle shortly after.
The benefits are:
- High Loan Amount: You can get a loan of up to INR 50 lakhs to buy a used car.
Unparalleled Financing Rates: Because of the risks involved for both the purchaser and the lender, interest rates on used cars are higher. Most lenders need a down payment of 65-80percent of the estimated worth of the vehicle being purchased.
- Flexible Terms: It gives you the freedom to choose your loan amount, loan tenure, and EMI period. You can also choose a payment option that suits your needs: post-dated cheque, online payments, or ECS, an auto-debit feature that deducts the EMI from your bank account regularly.
- Minimal Paperwork: In the case of a used automobile loan, practically the entire process will be done online. The loan application form is the sole piece of documentation that needs to be signed at a branch. Even the documents required are straightforward, turning the actual loan application process straightforward.
Second-Hand Car on EMI: Procedure and Types
You can apply for a used car loan with any reputable bank, both online and offline. Here’s how to go about it:
Offline Procedure for Obtaining a Used Car Loan
- Go to your desired loan institution’s nearby branch.
- Complete the online application form.
- Make copies of all essential documents and submit them.
- After you’ve submitted your application, a representative from the financial institution will review it to see if you’re eligible.
- If you qualify, examine the rate of interest and loan details with the lender before accepting the offer.
- If you take the offer, the money will be sent to you as soon as possible.
Procedure for Obtaining a Used Car Loan over the online platform
- Go to the website of your desired loan institution.
- Go to the ‘Apply’ link on the second-hand car finance page.
- Fill in your information and attach a scanned copy of your required documentation and proof of income.
- After the lender has completed the verification process, you will create a personalized offer.
- If you take the offer, the used car loan amount will be deposited into the seller’s account.
When buying a used automobile on EMI, you have the choice of picking between two EMI methods: normal EMI and structured EMI. Continue reading to learn about these EMI choices.
Standard EMI: With this EMI, the interest rate and monthly payment stay consistent throughout the term of the used-car loan. If your salary is expected to change at some point, this Instalment option is ideal for you.
Structured EMI: With this second-hand car on EMI plan, you can tailor your pre-owned auto loan EMI to your preferences. If you choose a fixed EMI, your EMI will typically begin low and gradually increase throughout the loan duration. This is the best option for individuals who anticipate an increase in their wages in the future.
For you, purchasing could be a desire or a necessity. In any case, you must purchase an automobile that you enjoy driving, or you’ll feel discomfort each time you are using it.