Hyderabad, the capital city of the state of Telangana, is one of the IT hubs of southern India, making it a popular destination for job seekers. It is also a popular tourist destination because the “old city” has many ancient attractions that draw in thousands of tourists every year. It is a city that is undergoing rapid growth due to which the connectivity within the city is well established. Though you can always take the bus or the train, which is packed during rush hours, to travel within the city, having your own car makes it much easier to move around.
The choice between a used car and a new one is often a tough one, but for many people owning a used car makes more sense than owning a brand new one. There are many reasons why a sued car can be a better option for you and here are some of them.
If you do not have adequate funds to purchase the car of your choice, you have the option of approaching banks and non-banking financial companies (NBFCs), who loan you money for a specified period of time and charge a small interest on it. As long as you meet their eligibility criteria, your used car loan application will be approved.
Different lenders have different eligibility criteria for used car loans. Here are some of the basic ones:
Do check your eligibility criteria before applying for a used car loan as a loan rejection will adversely impact your credit score, making it difficult for you to avail loans in future.
The documents required to avail a used car loan are the following:
Applying for a used car loan is very simple and convenient. All you need to do is visit different lenders’ websites and check what offers they have on used car loans. Compare each of the aspects of the loan, such as loan amount, interest rate, tenure, processing fee, and prepayment charges. Once you have gone through all of your options and have made a decision, download the application form, fill it, and submit it along with the necessary documents. Make sure not to submit multiple applications at one time as it can increase the chances of your loan application getting rejected.
You may be in a rush to get behind the steering wheel of your very own car and may apply for a used car loan without taking into account all its features and charges, but you have to take it slow. No matter how excited you are about purchasing a car, ignoring the charges may cause you to be in a financially sticky situation later on. Here are a few aspects of used car loans you need to keep in mind before applying for one:
Here are some of the financial institutions offering used car loans in India:
|Lender||Loan Amount||Interest rate||Loan Tenure|
|TVS Credit Services||Up to 85% of the purchase value of the used car||13.1% to 15% p.a.||1-5 years|
|Capital First||Rs.1.5 lakh to Rs.25 lakh||2.5% to 14.5% p.a.||1-7 years|
|State Bank of India||Up to 2.5 times your net annual income||12.60% p.a.||1-5 years|
|ICICI Bank||Up to 80% of the purchase value of the used car||10% to 14.65% p.a.||1-3 years|
|Sundaram Finance||Up to 85% of the purchase value of the used car||12% to 14% p.a.||1|