by 
Kunal seemed a little stressed since morning. I was aware that his wife is pregnant and over the weekend she had her first ultrasound. I was anxious and wanted to ask whether everything was alright, but before I could say anything, Raghav, our colleague came with a box of sweets. “My wife just had a baby girl!” he exclaimed with a smile spread wide across his face.
“Congratulations!” Kunal said, sounding rather depressed.
“What’s wrong Kunal?” Raghav asked.
“Riya, my wife is pregnant with twins. I was very happy at first, but then it hit me. As happy as I am, this means double expenses, a lot more care for Riya and extra medication.” Kunal was almost in tears. “Further, the doctor said, it would be better if Riya avoids public transport and two wheelers are completely prohibited. I can’t afford a car with all these expenses, especially when my older kid is going to start his elementary school in few months.
“Don’t worry Kunal I have a plan for you. Wipe off those tears and start choosing a car for yourself.” Raghav opened a used car site on Kunal’s laptop.
Here are some things that Raghav told Kunal about purchasing a used car:
- For starters, banks and NBFCs provide used car loans online. All you have to do is fill a form and keep your age, address and id proof ready.
- Since you are a salaried employee and earn more than Rs. 2.5 lakhs per annum, you can avail the used car loan for almost 90% of the car cost. Thus, you can use all the money you would have spent on the down payment to pay for the extra expenses of your twins and Riya’s medication. Also, there is no need for collateral against your loan apart from the purchased car.
- The loan disbursal policy is hassle free and transparent. Once you have submitted all your required documents, you can avail your loan with 24-36 hours. Hence, you can take Riya for her next check-up in a car. It is that easy and quick.
- Used car loans are available at competitive rates, that leads to lower interest rates. This will reduce your EMIs by a substantial amount and you will end up saving a lot of money over the entire loan tenure, lowering your overall expenses. Some lenders, like Tata Capital also offer repayment options such as Step-Up and Step-Down where your EMIs will gradually increase or decrease over the years, respectively. Other options include Bullet Payment where you can make part prepayment at periodic intervals and Ballooning Option which means lower EMIs with bigger payment in the ultimate EMI. Therefore, you can align your EMIs with your bonus and incentives.
- Finally, you can choose to repay this loan over a period of 60 months, giving you more time to clear out the loan without it affecting your finances. Thus, you will be loan free, latest by the time your twins start elementary school.
“I think you should buy an SUV, after all, soon you are going to be a family of five.” Raghav nudged Kunal before leaving.
