Coimbatore is one of the major cities in the state of Tamil Nadu. Life in the city is pleasant and so is its climate because of the presence of greenery in and around it. It is a major healthcare, education, and manufacturing hub due to which it is growing at an incredibly fast rate. The presence of medium- and large-scale industries has attracted many job-seekers to the city over the past few years, making it one of the most popular cities in the Southern part of India.
Owning a car in Coimbatore can be extremely helpful as you don’t have to worry about being stuck in traffic for hours like in other major cities of the country. Though you can take public transport, like trains and buses, to commute to work, having your own car can make things much easier for you. There are many beautiful spots around the city you can drive to over the weekend to relax and unwind before you head back to work. When you drive your own car, you will not have to worry too much about the cost of damages, unlike driving rental cars.
Though the thought of owning a brand new car seems exhilarating, it is not always the best option for most people. The cost and maintenance charges of these cars are usually high, which may financially strain your pockets. Unless you are a very skilled driver with less concern for how much you spend, a used car is often a better choice for you. Here are some of the reasons why you should opt for a used car instead of a brand new one:
Once you have set your mind on purchasing a car, whether new or used, the first thing you have to think of is the cost. If you do not have enough funds to purchase a used car, you have the option of approaching a bank or a non-banking financial company (NBFC) for financial help. These financial institutions offer used car loans of up to 90% of the total cost of the car at competitive rates. As long as you fit their eligibility criteria, you can get a used car loan approved.
Here are some of the eligibility criteria for a used car loan:
These eligibility criteria may vary slightly from lender to lender. Visiting their website or talking to one of their agents will give you a better idea of their eligibility criteria so that you can apply accordingly.
You should always check your used car loan eligibility criteria before availing a loan because a loan rejection lowers your credit score, which makes it harder to avail loans in future.
The documentation process for a used car loan is relatively simple. You will need to submit your identity proof, age proof, income proof, and residence proof.
Here are some of the documents you can submit:
You can apply for a used car loan in Coimbatore either online or offline.
Compare used car loans online
|Lender||Loan Amount||Interest Rate||Loan Tenure||Processing Fee|
|HDFC Bank||Up to 85% of the value of the used car||11.50% to 17.50% p.a.||1-7 years (the age of the car should not exceed 10 years by the end of the loan tenure)||Rs.5,000 or 2% of the used car loan amount, whichever is lower|
|ICICI Bank||Up to 80% of the value of the car||10% to 17.65% p.a.||2-3 years||Rs.6,000 or 2% of the used car loan amount, whichever is lower|
|TVS Credit Services||Up to 85% of the value of the used car||13.1% to 15% p.a.||1-5 years||Rs.999 + GST|
|State Bank of India||Up to 2.5 times your net annual income||12.60% p.a.||1-5 years||0.5% of the used car loan amount + GST (minimum Rs.450 + GST, maximum Rs.9,100 +GST)|
|Sundaram Finance||Up to 85% of the value of the used car||12% to 14% p.a.||1-3 years||Rs.2,500 (a one-time processing fee)|
The EMI you need to pay in order to repay your used car loan amount depends on the amount you take as a loan, the interest rate, and the tenure of the loan. Calculating your EMI can be a tedious process which is prone to errors. You can instead use online car loan EMI calculators that are not only quick but also accurate. All you need to do is enter the loan amount, the interest rate, the tenure, and the processing fee into the tool and click “Calculate.” Your EMI amount will be displayed instantly. Some tools display a pie chart or bar graphs that show the total loan amount along with the interest charged on the loan. Some tools also display your entire repayment schedule in the form of an amortisation table.
You can enter different values depending on the offers by different lenders to see which offer best suits your requirements and which one is less financially burdening. You can use this information to choose which loan offer you want to take up.
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