Kolkata, the city of joy, is a vibrant city in the state of West Bengal. It is one of the oldest and biggest cities in India with a charm of its own. Its public transport system is pretty well developed. You can use buses, the underground metro, and trams to get from one point to another. Since the weather of Kolkata is very hot and humid during the summers and since the public transport systems are too crowded during rush hours, it is much more convenient to have your own car. You can drive around the city in comfort and on your own terms and can use it for weekend getaways too. With your own car, you will not have to worry about damage excessively as you would with rental cars.
Here are some of the reasons why used cars make a good choice:
Buying a car may not be feasible for you because you do not have sufficient funds to do so. In such cases, you can approach banks and non-banking financial companies (NBFCs) to borrow money. These financial institutions give out new and used car loans for a specific period of time and charge a small interest on it. All you need to do is submit a loan application and as long as you meet their eligibility criteria, the loan will be sanctioned.
Different lenders have different eligibility criteria for used car loans and here are some of the basic ones:
The application should have a credit score of 750 and over.
Always check your loan eligibility before availing a used car loan as a loan rejection can negatively impact your credit score.
Here are the documents required for a used car loan:
You can apply for a used car loan either online or offline. When availing a used car loan online, you need to visit the websites of different banks, check the offers they have on used car loans, compare them with each other, and chose the one that best suits your requirements and is financially beneficial to you.Once you have made your decision, download the application form, fill it, and submit it along with the documents mentioned. A representative of the bank will get in touch with you and take the loan application forward.
Applying for a used car loan can be a little tougher than applying for one online because you cannot do it from the comfort of your home. You need to visit the branches of different banks or different NBFCs in person, check their loan offers, and choose the best one for you. Once you make your decision, you need to fill in their application form and submit it with a copy of the necessary documents. An agent of the bank will then take your application forward after contacting you. Do not submit multiple applications at a time as it will decrease your chances of getting your loan approved.
Availing a used car loan may be the easiest way for you to purchase a car of your dreams but you need to know about all its features before you do so. When you have all the information about used car loans, you know what you are getting yourself into, and you will know how financially burdened you will be after you take the loan. Here are some things you should know about used car loans:
Calculating your EMI manually is a tiring process and is prone to errors. Fortunately, there are many online tools available, which will do the calculation for you. All you need to do is, input the loan amount, processing fee, interest rate, and loan tenure. Once you click “Calculate” you will get the car loan EMI amount and the entire repayment schedule in the form of an amortization schedule. You can try different combinations, depending on the used car loan offers from different banks, and see which offer is most suitable for you.
Here are some of the best used car loans offered in India:
|Lender||Loan Amount||Interest Rate||Loan Tenure|
|Axis Bank||Minimum - Rs.1 lakh Maximum - Up to 90% of the value of the used car||15% p.a. (minimum)||1-5 years|
|Kotak Mahindra Prime||Minimum - Rs.1.5 lakh Maximum - Up to 90% of the total value of the vehicle||15% p.a. to 20% p.a.||1-5 years|
|Magma Fincorp||Up to 90% of the value of the used car||16% p.a. to 20% p.a.||1-15 years|
|TVS Credit Services||Minimum - Rs.20,000 Maximum - Up to 85% of the total value of the used car||13.1% p.a. to 15% p.a. floating||1-5 years|
|HDFC Bank||Minimum - Rs.75,000 Maximum - Up to 90% of the total value of the used car||12% p.a. to 15.5% p.a.||Up to 7 years (The age of the car should not be more than 10 years at the time of car maturity)|
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.