What Is A Used Car Loan?
There is an old saying which goes as ‘old is gold’. The saying emphasizes the importance of old objects. But when it comes to getting an old or used car, it’s not just about the importance but also about many more benefits. Banks and NBFCs happily give loans to purchase a used car or second hand car. This type of loan is getting popular day by day because of various benefits and features one can avail.
- Suitable For Low Budget:
Cars are an expensive affair. People who are on low budget wish to buy a car but many times have to settle on a two wheeler. But with used car loan one can make the car dreams come true. Used cars cost less than its current on road price and with easy EMI options offered by banks; you can easily buy a used car. You can pay the EMIs which will be much cheaper than buying a firsthand new car.
- Freedom To Choose Desired Model:
By opting for used car loan one can easily afford any luxury car. The price of used car is not derived from its current on road price. It is decided on its condition, model and insurance details etc. So the price of luxury car dramatically decreases and one can buy it by opting for easy EMIs. Here you can choose a model of the car which you won’t be able to buy easily in terms of new car. So those who desire to buy cars like SUVs will be able to get it easily.
- Easy Availability of Loan:
The process of getting a used car loan is much easier and hassle free compared to a new car loan. This is a new type of loan and banks are always willing to avail it to customers. Banks offer customized used car loans with easy EMI plans for customers. Also compared to new car loan, the banks are able to lend lesser amounts to customers. Banks charge very minimal fees for pre-payment of used car loan so the customers can easily pay off the loan faster than required. Banks charge interest rate on used car starting from 15.50%.
- Minimum Documentation:
To avail a used car loan, you don’t need a pile of documents. Self employed and salaried, all types of professionals can avail this loan. You just need your KYC details along with your bank statement and salary slips or ITR statements.
So buy your dream car today!