Delhi, the capital of India, is a bustling metropolitan city where almost everyone has something to do and some place to be. The ancient and the modern aspects of the city blend perfectly well together to gives it its uniqueness. With its abundance of monuments and companies and conglomerates, it is a popular destination for vacationers and job seekers.
Given the popularity of Delhi, travelling from one point to the other within the city can be a bit of a hassle. Having your own vehicle can make it much easier to move around instead of waiting endless hours for public transport that either seems to be too full or never seems to be on time. Many daily commuters rely on bikes and scooters too, but when it rains heavily or when the summer heat is at its peak, a car proves to be a much better option.
Whether to get a brand new car or a used one is a common dilemma everyone faces. Although the feeling of owning a brand new car can be exhilarating, the choice of buying a used car takes the upper hand. Here’s why owning a used car is a better option for you.
Used car loans come in very handy when you want to purchase a pre-owned car and do not have sufficient funds to do so. Various banks and non-banking financial companies (NBFCs) offer used car loans, but the terms of the loan may not always be very beneficial for the borrower. Here are some features of used car loans you need to consider before applying for a used car loan.
Interest Rate and Tenure: Although used cars cost lesser than brand new cars, used car loans may have a higher interest rate and a shorter tenure than general car loans. Used car loans can usually be availed for up to a period of 5 years, while some lenders may be willing to lend only up to a period of 36 months. Since the rate of interest and the loan tenure will determine the value of equated monthly instalments (EMIs) you need to pay, it is important to take these factors into consideration before applying for a used car loan.
Applying for a used car loan is relatively easy and you can do it in 2 ways: online and offline. When applying for a car loan online, you will need to visit the websites of different banks and check what they have to offer. Once you have done that, you can download an application form, fill it, and submit it along with the required documents. An agent from the bank will get in touch with you to take the process further.
To apply for a used car loan offline, you will need to visit a bank branch, ask for a car loan application form, fill it, and submit it along with your documents. The bank will look into the loan application and will approve or deny the loan based on your eligibility. When the loan is approved, the principal loan amount will be disbursed into your bank account.
If you have been using the services of a certain bank for a long time and if your credit history is good, the bank may offer you a pre-approved loan. Such loans are processed very quickly and the loan amount is immediately disbursed into your account.
To avail a used car loan, you will need to submit your identity, address, age, and income proofs. Here are some of the documents you need to submit.
Lenders offer used car loans who meet certain eligibility criteria, which can vary from one lender to another. The basic eligibility criteria for used car loans are the following:
Comparing loans offered by different lenders will have you know your options. Once you have all your options laid out in front of you, you can choose the one that best suits your requirements, and submit your application.
Here are some of the offers on used car loans in Delhi.
|Lender||Interest Rate||Loan Amount||Processing Fee||Tenure|
|HDFC Bank||12%– 15.5% p.a. Fixed||Rs.75,000 minimum||One-time fee of up to Rs. 5,310||1 – 7 years (At the time of loan maturity, the age of the car should not be more than 10 years.)|
|TVS Credit Services||13.1% - 15% p.a. floating||Rs.20,000 to Rs.10 lakh||Rs. 999 + applicable tax||1 – 5 years|
|Capital First||12.5% - 14.5% floating||Rs.1.5 lakh – Rs.25 lakh||2% of the principal loan amount||1 – 7 years|
|Sundaram Finance||12% - 14% fixed||Rs. 1 lakh minimum||Rs. 2500 (a one-time processing fee)||1 – 3 years|
|Dena Bank||11.50% floating||Rs. 1 lakh minimum||Rs. 575 (a one-time processing fee)||1 – 3 years|