Wish to Get Finance for Used Cars? Here is What You Should Know
The used car markets have experienced tremendous growth in the last few years, as more and more people have started shifting their focus to used cars instead of burdening themselves under the high cost of a brand-new car. A new car may appeal to your eyes with its fine exteriors, and high-end features, but when it comes to saving a significant amount of money while enjoying a comfortable ride, purchasing a used car might be a wise choice. In fact, for a major population of India which still considers buying even a used car a financial liability, the lending markets now offer customizable financing options. By arranging finance for used cars, the consumers can save themselves from the stress of paying for the cost of the car in one go, as they can make a certain amount of down payment and pay rest of the amount in the form of well-equated monthly instalments.
How to avail finance for pre-owned cars in India?
To avail the finance services in India, it is important for you to meet the eligibility criteria demanded by the lender. These eligibility conditions may include points such as:
• Both salaried and self-employed individuals with a stable source of income can apply for the loan.
• The applicant needs to be in the age group of 22-65 years while applying for the loan.
• The monthly income of the applicant should be at least Rs.20,000, and the applicant must provide all the income proof documents to verify the same.
• The age of the used car must not be more than 8 years.
• The car should not have more than 3 previous owners.
Few perks of getting a used car financed
• High loan amount – While planning to get finance for used cars, you can find various lenders that provide a high loan amount to give you a chance to explore multiple options in different budget categories. A bunch of lenders may even offer you a loan of up to Rs. 50-60 lakhs, especially if you have a positive credit score and a flawless credit history.
• Hassle-free documentation and quick disbursal – In case of used car loans, the verification procedure does not consume much time, and since many of the lenders have moved the application online, you can get your application approved without any hassle. Also, as the online documentation process takes less time, the funds are quickly disbursed in your account.
• Favourable interest rate – The used cars are associated with several on-road risks in comparison to new cars, and hence, the lenders usually charge a higher rate of interest. However, if you have been able to maintain a good credit score, then you automatically become eligible to negotiate the rates with the lender.
Conclusion
By taking finance for used cars, you can undoubtedly reduce the financial stress on your shoulders and at the same time, make your everyday travel absolutely safe and convenient. With these finance services, you can effortlessly pay for the cost of the car in the form of EMIs charged at competitive interest rates. However, it is important for you to first meet the eligibility criteria and gather all the details about the loan in order to make an informed decision.
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