Are Used Car Loans Cumbersome?
With ever expanding cities, cars are no longer considered as a luxurious commodity. This fact has not gone unnoticed by the car markets, specially the used car market. The cascading effect of this new trend can be clearly seen on the financial institutions that offer used car loans. Gone are the days when getting second hand car loans used to be a nightmare. There are many banks as well as non-banking financial companies (NBFC) are offering used car finance.
Pre Owned CarsKeep in mind while choosing a second hand car if you want to opt for used car loan
- Most financial institutes consider the model and the age of the car while processing the loan. If a car is of a older model and has lots of years on it then you might find it difficult to get an approval for such used cars. Go for newer models that have seen 2-4 years of use.
- Like any other loan, you need to have a good CIBIL report. With a nice CIBIL score you can get loan approval for about 95% of the used car price.
- In case you are going for partial financing, you need to first arrange that amount. Only after you have paid that sum and submitted the receipt for the same, the loan amount will be approved.
- You need to carefully consider various factors and work out the tenure and a comfortable EMI amount. Once you have clarity on these factors it will become easier for you to find the right used car loan.
- Never settle with the first option you come across. These days there are many banks out there that are offering used car loans at attractive interest rates. Scout a bit to find the best that is out there.
- Last but not the least, you have to take extra care to arrange for the exact documents as required by the bank. Note different banks might need different type of documentation. Right documentation smoothens the process and you can get the loan approval in the minimal time.
Must Read : The 5 Best Looking Cars in India That You Can Buy Second Hand
With the entry of reputed car manufacturing brands into the used car market, these days some banks are collaborating them and offering customers lower interest rates. Such collaborations are a win-win situation for both the banks and the customer. While the customer enjoys a lower rate of interest, the banks get an opportunity to enjoy a healthy conversion rate.