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Bring Home a Well-Maintained Car By Taking a Loan on Used Car

Whether you have just learnt to drive or you like to frequently change your cars, opting for used cars can offer a range of benefits. Thanks to their affordability, the used-car market is flourishing and experiencing a consistent increase in their demand. In addition, even to buy a premium model in the category of used cars, you no longer have to burn a hole in your pocket as you can simply get them financed. Numerous financial institutions offer loan on used car at low interest rates. All you need to do is a little bit of research to select the model that will fit your budget and to choose the lender that can provide the loan with flexible repayment terms. Most importantly, the loan sanction process has become extremely quick and requires minimum formalities. You are only asked to fill an application form and submit the documents for verification of your credentials to avail the loan.

Eligibility requirements for used car loans

• The applicant should be more than 18 years of age with a steady source of income.
• The car should not be more than 8 years of age to apply for the loan.
• Almost 60% to 80% value of the car is offered as loan and the rest would be available for down payment.
• Since it is pre-owned and the risk is high, the interest offered by the lender could be higher than what is offered on a new car.
• The lender will minutely analyse your profile, credit history and the details of the car, before sanctioning the loan.

Things you need to do before taking used car loan

• Fix a car and a budget – In order to apply for the loan, the first and foremost step is to set a budget so that you can get a clear picture of how much you have and how much you can take as a loan. Once decided, do not change your decision as it can disrupt your financial planning.

• Thoroughly compare your loan options – Several financial institutions offer loan on used car with different terms and conditions. Hence, you must scout the markets to compare the interest rate, processing fee and other features.

• Check the car’s condition – Once you are done deciding the car you wish to buy, then you must check its condition before finalising it. You may also take a look at all its paperwork to avoid any kind of inconvenience in the future.

• Try to make a large amount of down payment – To get the loan, you have to make a down payment of at least 10 to 15% of the car’s on-road value. It is important to note that the higher the down payment you make, the lower will be your loan amount and hence, you must make as much down payment as possible.

Conclusion

Consumers can now easily buy the car that they have been eyeing for a long time, simply by taking loan on used car. All they have to do is some research to select a reliable lender who can offer a loan with low interest rate and favourable repayment terms. Most importantly, you must make sure that the pre-owned car you wish to buy is in proper condition.


Related post-
Complete Your Loan Application With These Used Car Loan Documents- Link

by Hero FinCorp on 2020-11-03 06:18:41