Buying a second-hand car is a viable option for buyers with a limited budget. Additionally, they can get financial support by availing of a 2nd hand car loan. In recent days, cars have become a necessity.
However, buyers need to keep certain things in mind while buying a 2nd hand car with a used car loan; otherwise, they will end up spending a lot of money.
6 Things to Remember While Opting for a 2nd Hand Car Loan
While availing of a 2nd hand car loan, one can get swayed easily, so it’s essential to check specific parameters, which include:
1. Research on car financing lenders: The first and foremost thing one should do is compare different lenders. It will help individuals settle for the best personal loan offered at competitive loan rates.
2. Checking the interest rate and processing fee: The interest rate depends on factors like customer’s profile, income, credit history etc., and varies from one lender to another. Interest rates determine the cost of borrowing; therefore, one should choose the lowest interest rate available to make his/her borrowing affordable.
Furthermore, individuals should also check the processing fees, verification charges, etc., so that they don’t get swamped with these hidden charges at the last minute.
3. Loan tenor: Most lending institution offers a repayment tenor on a used car loan for 3 to 5 years. Before choosing a repayment period, borrowers must assess their financial liabilities and income status. Opting for a longer tenor will help one repay the loan amount comfortably. However, they should also be aware of the interest outgoes.
4. Keep documents in order: Borrowers must keep the documents like registration certificate, NOC, Pollution under control certificate etc., handy while availing a second-hand car loan.
5. Eligibility: A person willing to avail personal loan must meet the essential eligibility criteria. Applicants must be residing citizens of India, between the age of 21 years to 67 years. Besides, they should be salaried individuals working in any reputed MNC or a company.
Furthermore, documents required for a personal loan for salaried individuals are:
- KYC papers
- Bank statements for three months
- Employee ID card
- Salary slips of two months, etc
Now, as applicants know the eligibility criteria, they can apply for a personal loan for used cars online.
6. Choosing the loan amount:
While availing of a 2nd hand car loan, individuals must go for a lending institution offering a high-value loan amount. Lenders will disburse the amount after evaluating a borrower’s eligibility, credit history, car condition, and many other parameters. However, borrowers will have to pay a certain amount of the sanctioned amount as a down payment. In cases where the sanctioned amount doesn’t suffice the borrower’s need, they can shift to availing of a personal loan.
Additionally, they can opt for lending institutions offering high-value personal loans at nominal loan rates only if they adhere to the eligibility criteria. In this regard, borrowers must know the ways to get the best personal loan rate.
Furthermore, these leading institutions extend pre-approved offers to their customers on financial products like personal loans, business loans etc. These offers streamline the application process and ensure quick disbursements. Customers can check their pre-approved offers online by entering their name and contact number.
Additionally, reputed financers have launched their personal loan apps, making the borrowers’ tasks easy. They can view the pre-approved offers, make payments, check on the loan status, etc.
To sum up, opting for a 2nd hand car loan is the ideal way to own your dream car. However, it is crucial to keep the things mentioned above in mind as it will help one maintain the budget and make an informed decision. Moreover, if the amount sanctioned is not adequate, one can shift to availing a personal loan that will help them manage their financial liabilities without digging into the lifelong savings.