5 Things To Know About Used Car Loan

5 Things To Know About Used Car Loan

The world has become a different place due to the pandemic. Public transport is no longer safe, a lot of offices have not opened, and there is complete uncertainty about how and when things will return to normal. If you used public transport in the past, it is best to avoid it for some time now.

Many cities have yet to fully open mass transit systems like local trains and buses, but even if they do, it might not be a safe option. This is a good time to invest in a used car for your commute. If you are worried about the funds, apply for a used car loan.

Buying a car should not give you financial stress. There are several lenders in the industry who offer a loan for the purchase of a used car. The car should be less than eight years in age. Before you head to the second hand car market, here are five things you need to know about the loan.

1. Eligibility: Different lenders have varying eligibility criteria for the loan. You can compare the same online and then proceed with the loan application. The basic eligibility criteria require the age of the applicant to be above 18 and have a valid driving license. You also need to have a stable source of income. The loan is available for every brand and type of car in the industry.

2. Down payment: The lender will not offer a loan for 100% value of the car. This means you will have to make a down payment for the loan to be approved. Most lenders have a minimum requirement of 20% to 30%. You can make the minimum payment or if you have excess funds on hand, you can make a higher down payment. You need to attach proof of down payment when you apply for the loan.

3. Interest rate: Always compare the interest rate before you sign on the loan documents. Since it is a used car loan, the interest rate will be slightly higher as compared to a new car loan due to the risk associated with it. Choose a lender that offers the loan at low interest rate so that your EMI will be low and monthly outflow will be manageable.

4. Application procedure: The application procedure for the loan is simple and hassle-free. You can make an online application. Simply fill up the application form and submit documents as necessary. You loan application will be processed without any delay.

5. Documentation: You need to provide identity proof, address proof, income proof, ITR, down payment proof, and the documents of the car you wish to purchase. You also need to provide two passport sized photographs with the loan application.

Keep these five things in mind before you apply for a used car loan. The loan is available at a high amount and has flexible repayment tenure. You can make the repayment while you use the car. The loan will be approved in no time and you will be able to bring your new car home. Timely payment of EMIs will help build a strong credit score, which will make it easier for you to get a loan approval in the future. Visit the pre-owned car market and take a test drive before you choose a car. Do not rush the decision and pick a car that has run less miles and is in good condition. Prepare a repayment schedule to ensure timely payment of dues. Keep in mind the monthly income and outflow before you agree on an EMI amount. Enjoy your new car without any financial burden!

Similar Articles

Eligibility and Documents for a Commercial Loan

A commercial loan is a common form of borrowing in the country. The loan is usually short term finance that is offered to businesses to meet their operation costs and capital expenditures. A business goes through various stages where it needs funds to grow and expand.

approved loans

While we all try our best to live within our means, it doesn’t take much to put you in a situation when you need an injection of cash; it might be a sudden emergency medical bill, or your beloved car develops a serious engine problem or even an unexpected home-related repair. 

unsecured business loan

With your business all set to take the world by a storm, the last thing that should stand in your way is urgent funding or additional capital. Be it for purchasing inventory, funding daily operations or buying expensive machinery for your factory, business loans are the perfect answer to your problem.

5 Things You Should Never Do Once Your Loan is Approved

Applying for a home loan means preparing your finances for a lender and keeping them ready. Here are 5 things all potential home buyers should never do once they have applied with a mortgage officer or lender.

Many businesses depend on invoice discounting for getting instant access to funds

As a business owner, it is a difficult task to handle the cash flow. If you own a business, you are always on the lookout for funds to grow your business.

How To Change Your Mindset About Debt

When you are finding yourself in the throes of financial struggles, there are things you likely need to change your mindset surrounding money, spending, and debt. If you’re having a hard time with money, you’re not the only one.

Things to Know Before You Avail an Unsecured Business Loan

There are different types of loans available for businesses. An unsecured business loan has proved to be the best option, thanks to the high loan amount and flexibility in repayment. The loan does not require any asset to be hypothecated and the entire risk remains on the lender.

All You Wanted to Know About P2P Lending

Peer-to-peer lending is a type of debt financing wherein lenders and borrowers enjoy the control and freedom over the terms of a loan. There is no intervention of the intermediary financial systems. Simply, it is the term used for defining the practice of lending money by individuals with the help of services that connects the borrowers and the lenders directly.

4 Tips for Surviving Summer Without Student Loans

We’ve all been there at some point, summer has rolled around and those savings we promised we’d make to help cover us over the summer months are non-existent. Now, you find yourself with no classes – and no money! Here four tips for surviving summer without your student loan.