With the proliferation of used car dealerships across the country, along with its immense pocket-friendly features, most people are considering buying used cars. The one thing common between buying a new car and a used car is that both require funds. For small families with a single earner and kids of school-going age, life in a metro comes with its own financial limitations. This is why used car loan is emerging as the most preferred way to finance this important purchase.
A second-hand car loan not only makes it easy for you to repay in the form of EMIs but also saves you the hassle of having to spend hard-earned cash in one shot. Read to know what to consider before buying a second-hand car on loan.
1. Loan Amount: Not everybody has the same used car loan amount requirement. A 2017 Swift VXI drove 13000 km can cost anywhere between Rs 5 lakh to Rs 5.5. lakh. A Tata Indica of 2014 and driven for 50,000 km, on the other hand, can be yours for less than Rs 2.5 lakh in the used car market. Knowing your eligible loan amount is important. This is because your used car loan should cover the cost of the vehicle. You should also check how much of the used car loan amount will fund the car. Calculate your EMI on used car loan with Tata Capital.
2. Loan Eligibility: Almost everyone can aspire to be a car owner. With loans available, finance is not a problem. However, eligibility can limit many from getting funds required to buy that second-hand car they might have their eye on. Some financial lenders have age restrictions. Others prefer giving loans to those with 5 years of experience. Some even have conditions attached such as borrower needs to be with his/her current employer for more than a year. Loan eligibility can make it seem like a cross-country race, with twists and turns. Tata Capital considers giving loans to those employed in government, public or private sector organizations. You need to be a minimum of 21 years. Two years’ work experience with a minimum of 6 months with current employer. Most institutions have a checklist with all the eligibility criteria. Check Tata Capital’s Used Car Loan eligibility criteria.
3. Loan Documentation: Most institutions understand that too much documentation and delays can slow your gung-ho spirit when it comes to buying a car. Imagine just submitting 6 documents: copy of either your Voter ID / Passport / Driving License / Aadhaar Card / PAN Card; copy of your salary account bank statements for the last three months; copy of your salary slips for the last three months, copy of your Ration Card / Electricity Bill / Passport, copy of your vehicle’s registration certificate; and copy of your telephone / mobile bill is required.
4. Customized EMIs: Today the world is revolving around customization. From fashion, food to fun, everything is customized. Why should your used car loan repayment be any different? NBFCs like Tata Capital allows you the flexibility to control your EMIs. Those with consistent income can always opt for a fixed EMI, but structured EMI options work better if you expect income to rise at regular intervals. Our Structured EMI allows you as a borrower to select a repayment method that suits you best. You can also decide how you want to repay your loan. Choose from our host of options like ECS, post-dated cheques and online payment.
You, too, can be an owner of a car! It’s actually not that hard if you want to avail a used car loan. Minimum paperwork, customized repayment, competitive interest rates and instant online approval are just a few things that you need to look for. Know more about Used Car loans by Tata Capital.