Ahmedabad, a city in the state of Gujarat, is one of the largest cities in India. It is one of the fastest developing cities in the country and has a well developed public transport system, like buses and trains. Although you can use these forms of transport to commute within the city, having your own car can make it much more convenient for you. You can even use it for weekend getaways, and you can drive your car without having to worry about the damages like you would with rental cars.
The thought of owning a car can be exciting and can give you a sense of accomplishment, but the dilemma of whether to opt for a used car or a new one may be on your mind. If you are not a confident driver or have a limited budget, a used car may be the right choice for you. Here are some reasons why you should opt for a used car.
Once you have made up your mind to purchase a used car but do not have the means to do so, you can borrow money from banks and non-banking financial companies. These lending institutions offer new as well as used car loans at competitive interest rates. You can get up to 80-90% of the value of the car from them. As long as you meet their eligibility criteria your car loan application will be approved.
Here are some banks and NBFCs that provide used car loans in India:
|Lender||Loan Amount||Interest rate||Processing Fee||Loan Tenure|
|Capital First||Rs.1.5 lakh to Rs.25 lakh||12.5% p.a. to 14.5% p.a. floating||2% of the principal loan amount||1-7 years|
|TVS Credit Services||Rs.20,000 to Rs.10 lakh||13.1% p.a. to 15% p.a. floating||Rs. 999 + applicable tax||1-5 years|
|Dena Bank||Rs.1 lakh minimum||11.50% p.a. floating||A one-time processing fee of Rs. 575 + GST||1-3 years|
|HDFC Bank||Rs.75,000 minimum||12% p.a. to 15.5% p.a. fixed||A one-time processing fee of up to Rs. 5,000||1-7 years|
|Sundaram Finance||Rs.1 lakh minimum||12% p.a. to 14% p.a. fixed||A one-time processing fee of up to Rs. 2,500||1-3 years|
You can apply for a used car loan in 2 ways, online or offline. When applying for a used car loan online, you need to visit the websites of different lenders and see what they have to offer. Compare the offers, select one that suits your requirements, download the application form, fill it, and submit it along with the necessary documents. Once you submit the application, an agent of the bank will contact you and take your application forward.
Applying for a used car loan offline is a bit more hectic than applying for one online because you have to visit banks and NBFCs in person to check out their loan offers. Once you have decided which lender to borrow funds from, you can fill their application form, and submit it along with a copy of your documents. Remember not to submit multiple applications at a time as it reduces your chances of getting your loan approved.
The eligibility criteria for used car loans vary from one lender to another. Here are some basic eligibility criteria that most financial institutions have:
You should always check your used car loan eligibility before availing one as a loan rejection can negatively impact your credit score.
Here are the documents required to avail a used car loan:
Used car loans have the following features: