Get the Best Used Car Loan in India

Based on a survey last year, the size of Indian used car market is about 3.5 million cars. This is more than 1.2 times the annual sales volume of new cars. Majority of used cars sold are financed through used car loans. The penetration of car loans in used car segment is constantly increasing. The main reason behind this is the acceptance amongst people about used cars. Consumers are more than willing to invest in a used car as compared to buying a brand new car. It is possible to buy a premium used car at the cost of a new car. Other reasons include minimal loan documentation requirement and the quick approval process. If you want to get the best used car loan, you need to keep the below mentioned factors in mind.

1. Rate of interest: It is important to compare the interest rates offered by different lenders. Scout the market for different lenders and choose the one that offers the lowest interest rate. The interest rates will vary from one lender to another. A low interest rate will make it easier for you to make the EMI payment. When you compare lenders, always compare the interest rates offered by them.

2. Amount of loan : When it comes to a used car loan, lenders will be willing to lend up to 70% of the valuation of the car. This means the balance amount will be your downpayment. The loan amount will be based on the valuation which is derived through the insured declared value and it could be much lower than the purchase price of the car. In order to get the best used car loan, you need to compare the loan amount offered by lenders. Keep in mind that a used car loan will only be offered if the car is less than eight years in age. Calculate the amount of down payment you will have to make to get the loan.

3. Tenure: Different lenders will offer different tenure for the loan. You will have to make the loan repayment within the tenure. The tenure of used car loans also depend on the condition and age of the car you are buying. You also need to consider your ability to make the repayment on time. Hence, if the tenure is very short, you need to ask for a longer tenure with a lower EMI.

4. Loan application and approval process : The loan application procedure is simple and hassle free. If you are an individual above the age of 18, you are eligible to apply for the loan. You need to have a stable source of income. You can make the application by filling up the application form and submitting the necessary documents. The documents include identity proof, income proof, address proof and the documents of your car. If you have a good credit score, the loan application will be approved within no time.

Keep these four points in mind when you apply for the best used car loan in India.