5 Things to Remember When You Apply for Second Hand Car Finance
Given the times, buying a used car is a smart decision. The growth of the used car market is a proof that consumers are willing to spend their hard-earned money on a used vehicle as compared to a new one. If you wish to buy a used car, apply for second hand car finance and make the purchase easy and convenient. Reliable financial institutions in the country offer a loan for the purchase of a used car. However, before you go ahead with the application, here are a few things you need to keep in mind.
1. Choose the right car: The loan is available for all types and brands of car in the industry. But you need to remember that it should not be more than eight years old. The loan will not be sanctioned if you purchase a car that is older than eight years. This is to ensure that the car is in good condition and will perform efficiently after you purchase.
2. Meet the down payment requirement: No lender will offer a loan for the 100% value of the used car. Hence, you will have to make a down payment to get the loan approved. If you have funds on hand, you can make a higher amount of down payment and reduce the loan amount. When you apply for a loan, you will have to provide proof of the down payment.
3. Application procedure: The loan application process is usually simple and hassle-free. You can apply for the loan from the comfort of your home. Simply fill up the application form and submit documents of identity proof, address proof, income proof, invoice of the car you want to own and proof of the down payment.
4. Repayment: Timely repayment of dues is important in any loan product. You need to prepare a repayment schedule to ensure timely payment. The loan amount has to be repaid in EMIs spread over the tenure. With regular payment of EMIs, you can increase your credit score and ensure that the loan is repaid in due time. There is an option of prepayment of dues and if you have funds on hand.
5. EMI calculator: Before you apply for the loan, it is recommended to use the EMI calculator and get an insight into the EMI payable. The calculator is available online and is easy to use. You only need to provide the loan amount and tenure. The calculator will give you an estimate in no time. You can change the inputs until you reach an optimal output.
Keep these five things in mind before you apply for second hand car finance in India. The loan application will be processed and approved in 10 working days and you can bring your used car home without worrying about the finance.
