Last Updated on August 21, 2022 by
Getting behind the wheels of your car is a great feeling. But finding the right vehicle that fits your budget and requirements is not that easy. Apart from buying a house, your car could be the most expensive purchase you make. It, therefore, makes sense to purchase a used car rather than a new one. These days, the used car market is flourishing mainly because of its affordability and readily available used car finance.
Do you wish to buy a pre-owned car without making it heavy on your pockets? A loan can help you with that. Even with budget constraints, you can now be a car-owner too.
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Getting a used car loan in India
Availing a second-hand car loan is simple, quick, and convenient. Firstly, check for the eligibility criteria. According to most NBFCs, you need to be in the age group of 21-65 years and fulfil other eligibility checks depending on your employment status. Along with your loan application form, you have to submit documents for verification of your credentials. Once settled, the loan amount is remitted to your car dealer and you will get your car after that.
With Muthoot Fincorp, your most desired car is just a few steps away. To know what makes it an ideal option to buy your car on credit, check the points mentioned below:
Attractive interest rate
The cost of the used car is lower as compared to the new car alternative. Thus, the interest charged tends to be less as the borrowing amount will be less. Applying for loans at Muthoot Fincorp gives you not only attractive and unparalleled interest rates but also additional benefits.
High loan amount
Buying a loan from NBFCs gives you an edge to get a higher loan amount sanctioned. Usually, they approve up to 70%-90% of the price of the used car. Applying for a used car loan can also get you an approval for high borrowing amount to purchase it. You can efficiently utilize your savings elsewhere to fulfil your long term investment goals. The loan amount availed may be less than the new car loan; therefore, your monthly instalments will be less.
Long and flexible repayment tenure
Apart from attractive interest rates, the loan also features a repayment tenure of up to 7 years. There are extended repayment options available to the customers, which put them at ease while making payments. Individual financial institutions also offer flexible repayment terms depending upon the eligibility criteria of the customer. They offer flexibility as the loan features let you decide on your loan amount, loan tenure and, monthly instalment amount, and duration. You can opt for the payment method according to your convenience: it could be a post-dated cheque, online payment, or ECS (electronic clearance service), an auto-debit facility where EMI is deducted from your bank account.
Quick and simple procedure
The procedure to apply for the used car finance is simple and made available entirely online. The entire process is conducted on the online platform, and further documentation and verification are also conducted online. There are minimal documentation and paperwork required while applying for the loan. The documents required are fundamental and minimal, thereby making the whole process hassle-free.
Low overhead expenses
While purchasing a used car, the depreciation rates, as well as the insurance cost, are lower than that of a new car. Reduction in these overhead costs benefits the customer, in a way reducing the entire borrowing amount to a great extent. Few financial institutions also provide other expenses like repair and maintenance costs as an additional offer to the loan.
Conclusion
A new car may smell good, but buying a used car is a wise decision keeping in mind the price of the car, consequent expenses, and depreciation rate. A used car will save you from spending exorbitantly as well as compromising on quality. From the initial value to the long term spending, buying a used car is the most economical option. Although most of you would prefer to pay for your car in cash, it is always a better idea to finance your purchase instead. Many financial institutions provide up to 100% financing. With access to the best and trustworthy financing options in the market, you can get pre-owned cars within your affordability.
Read more: What are the things that need to consider before applying for a Home loan?
