The pre-owned car market in India has been growing thanks to the aspirational value of cars and the easy availability of secondhand car loans. The affordability of used cars makes them ideal for small families looking to purchase their first four-wheeler.
In a metropolis like Bengaluru, the demand for four-wheelers has always increased. After some research to find the best car for you and a quick look at any online secondhand car loan EMI calculators available, you could be on your way to booking the car you want.
Many buyers favor a secondhand car loan, given the easy means of repayment and tax benefits. Banking and financial institutions with attractive interest rates make your purchase much more effortless. You don’t need to wait until you save money for a used car anymore.
While a competent secondhand car loan interest rate could be around 15%, you can determine the best available interest rate based on factors such as the car you are buying, your income, and loan eligibility. It is best to obtain a loan from a trusted financial institution so that all the information is available up-front and there are no hidden charges you have to worry about later.
For calculating your Easy Monthly Installments or EMI, you must note how soon you want to pay off your loan and the amount you can pay each month. You can then decide if you will pay a fixed amount each month through a revised EMI plan or enjoy the flexibility to change your monthly EMI with a structured EMI plan. A secondhand car loan EMI calculator will show you the available options.
before loaning. Such institutions are recommended since securing a loan through untrusted sources could be detrimental in the long run.
Here are some criteria that you must fulfill to be eligible for a secondhand car loan:
- It would help if you fell under the 21-to-65-year age bracket.
- If you are a salaried person, your monthly income should be at least 20,000; if you are self-employed, your annual income must be above 2 Lakh.
- Stability is an essential factor for getting a secondhand car loan. It would be best to be employed for at least a year or have a stable business running for at least three years.
. They are mentioned below and can be used as a checklist during the application process:
- A photo identification (Aadhaar Card, Passport, Driving License, Voter’s ID, or PAN card)
- Proof of address (Utility bills, Passport, Ration Card, Property Documents, or Tax Receipts)
- Proof of Income (Bank statement for the past three months and salary slips for the same period if you are a working professional, IT returns)
- A copy of the vehicle’s Registration Certificate
- A copy of your telephone or mobile bill
- A copy of your signature along with proof
The comfort and security of a car for a small family are unparalleled. Whether you are the owner of a two-wheeler looking to upgrade, purchasing your first car, or even buying a family member a car to practice driving on, a used car will fulfill your purpose while being easy on your pocket.
Self-financing is no longer the only viable option for purchasing a used car. A bit of research to find the most suitable and trusted financial institution could see you driving away in the vehicle of your dreams sooner than you think.