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WHAT THINGS YOU SHOULD CONSIDER WHILE APPLYING A USED CAR LOAN




A used car is that vehicle which is being sold for the second or the third time. The pre-owned car market in India is booming and the ratio of new cars to used cars is 1:2.2, which means that for every 50 new cars sold, 110 cars come into the market for sale. The annual volume in the pre-owned market is estimated to be 3 million units, which is 40% more than new car sales.Lenders say that there has been 15-20% rise in the used car loans as well. If you are also planning to buy a second hand car, here are a few things that you need to focus on. There are some reasons for the growth in used car market such as reducing ownership periods, better availability of platforms for buying and selling of used cars, change in perception, ownership of more than one car and ease in the availability of finance. We have discussed what things you should consider while "Applying a Used Car Loan".

INTEREST RATE: Getting the best interest rates for your used car loan is not easy. Do a proper search and compare the various loan providers so that you find a deal that suits your needs. The rate of interest decides the amount you will have to repay, but do not let this be the only deciding factor for borrowing the money. It also includes credibility of the lender.

DOCUMENTATION: When you are buying a second hand car, you need to check all the documents. The RC book of vehicle needs to be in order. The lending institution would want to know if all the documents of the asset are free from any issue. Lender will evaluate the documents and value the car independently as well as based on internal parameters before deciding to lend you the money.

LOAN TENURE: Nothing is more relaxing than a clearly laid out repayment schedule of loan and the possibility to foreclose a loan with minimum charges. You can use an online EMI calculator to know the amount you will have to pay for each month. Compare multiple combinations of Loan Amount, Rate of Interest and Tenure to arrive at the most suitable EMI.

CAR VALUATION: This is the significant part of financing a used car. A new car comes with a clear price tag whereas estimating the value of a used car is not easy.One would have to take into account the number of factors like kilometers driven, the user profile, the place of usage, accidents or modifications done on the vehicle and clear title of the car, etc.

LOAN PROCESSING CHARGES: Every loan provider charges a fee for processing your loan application and doing the paperwork. These charges depend on the loan amount, the tenure, and the down payment.

ShubhBank is an online lending marketplace where you can "Avail Fast and Easy Loans" with best possible rates of interest and terms for Personal Loan, Business Loan , Home Loan and Used Car Loan.

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