Used Car loans

Used Car loan

The car is a matter of luxury for some and for some it is a requirement for livelihood but everyone cannot afford a new car so they can buy used car loan or pre-owned car. Due to the lack of funds, they are not able to buy a car they can go for the used car loan.  

Used car loans are provided by the banks and other financial institutions with lowest interest rate in flexible tenure. Some basic features are available here. Description of the points of which you should be conscious. -

Finding your aim for buying a new car is the first step. It then helps you filter the price range and further zoom in on the model of the car that you wish to buy.

If you buy a car which is over 3 years old, you avoid losing a lot in depreciation value. But before you choose an old car, you need to ensure that the car’s registration papers, car insurance and other documents are in perfect order.

After selecting a car, you need to contact the lenders from whom you want to take the loan. You may compare different lenders based on the interest rate offered on the used car loan, loan margin needed, processing fees, repayment tenure provided, etc.  

Check the lender's eligibility norm and applicable terms and conditions. The interest rate on a used car loan varies significantly from lender to lender, so you must check the applicable interest rate before choosing the lender.  If the interest rate, charges, and LTV suit your requirement, you may select the lender and continue with a loan application.

Submit your documents required to take a loan, such as identity proof, address proof, and income proof, etc. The list of documents may vary from lender to lender. The lender often allows quick in-principal approval in most cases.

Once the loan is approved, the lender requires more documents before processing the payment at the time of disbursement. The borrower needs to submit documents such as a sale agreement between the buyer and the seller showing sale consideration.