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Today’s fast-paced lifestyle possesses an acute need to commute. It has turned cars into a necessity rather than a luxury. At this point, buying a pre-owned vehicle can be a value-for-money option. A stark contrast can be seen in the used car market today and the one a decade back.

Now you can get multiple options when it comes to selecting a used car, allowing you to have your desired car at a much lower price. According to a recently conducted survey, the used car market has hopped to 3.5 million cars which stands 1.2 times that of yearly sales of new cars.

Used cars loan has been an essential factor for the astounding growth of the pre-owned car market. Let us look at how a used car loan can ease things out for you in getting your dream car.

Perks & Benefits of applying for a used cars loan

Used car loans have a truckload of benefits to offer that can make your buying experience immensely smooth and convenient.

Financing capability

Used car loans can finance at least 75% of the IDV (Insured Declared Value) of the used car which you wish to buy. It eliminates any need to spend a lump sum out of your savings. The lender or the financial institution decides the upper limit to the used car loan amount that can be sanctioned. Having a favourable relationship history with the lender also improves the chances of securing a higher amount as a used car loan.

Quick disbursal of the loan amount

Used car loans have minimal requirements of documents consisting of some necessary identity proofs, income and Income Tax Returns proof and some details about the car that you are purchasing. It speeds up the verification procedure leading to faster disbursal of the loan amount. Hence, get your dream car at your doorstep without any delays.

Minimal eligibility criteria

Used cars loans put forward very few and simple norms and measures to be eligible to apply for a used car loan. It allows a large section of the population to opt for used car loans to obtain their dream cars.

Some of the criteria have been listed below.

  • Individual must be either salaried or self-employed or an agriculturist
  • The individual must be 21 or above and below 65 years old.
  • The individual should be earning a minimum of Rs. 15,000 a month or having a net profit of Rs. 1,50,000 per annum.

Modest Interest Rates

The financial institutions offer competitive used car loan interest rates which can be calculated using used car loan emi calculator. You can easily compare the used car loan interest rates offered by various financial institutions and pick the one offering the best scheme. It can help enhance your savings by diminishing your interest payments.

In India, Muthoot Capital is one of the most trusted companies to avail of used car loans from. They offer used car loans at lower interest rates and their approval process is also quick and easy

Flexible EMI options

The borrower has the liberty to choose the repayment structure depending on his or her financial potentiality. You can use a used car loan interest rate calculator to find out the exact amount of interest that you are supposed to pay on your selected used car loan scheme, and which will assist you in calculating the EMI value. It will help you make sure that the repayment scheme does not put too much pressure on your monthly budget.

Minimum Paperwork

For a used car loan, almost the entire process can be conducted on an online platform. The only paperwork required is a bank application form and a copy of your Driving License

Used Cars are definitely a great option if you are trying to buy a new car on a budget. With this, you can still drive a car that provides you with all the luxury and comfort of your dream vehicle. Again, there is no need to replace a perfectly good used car with that monster SUV or family-hauling van. Our blog on what is the best-used car should help you find the right option for your vehicle.