The pre-owned car market in India has been growing thanks to the aspirational value of cars coupled with the easy availability of a second-hand car loan. The affordability of used cars makes them ideal for small families looking to make their first four-wheeler purchase.
In a metropolis like Bengaluru, the demand for four-wheelers has always been on the rise. After some research to find the best car for you and a quick look at any of the online second-hand car loan EMI calculators available, you could be on your way to booking the car you want.
Many buyers favour a second-hand car loan given the easy means of repayment and tax benefits. You don’t need to wait till you save up the money for a used car anymore. Banking and financial institutions with attractive interest rates make your purchase much more effortless.
While a competent second-hand car loan interest rate could be around 15%, you can determine the best available interest rate for you 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. A second-hand car loan EMI calculator will show you the available options. You can then decide if you want to pay a fixed amount each month through a fixed EMI plan or enjoy the flexibility to change your monthly EMI with a structured EMI plan.
Trusted financial institutions will always check your used car loan eligibility before offering a loan. 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 fulfil to be eligible for a second hand car loan:
- You must fall under the 21-to-65-year age bracket.
- If you are a salaried person, your monthly income should be at least 20,000, and if you are self-employed, your annual income has to be above 2 Lakh.
- Stability is an essential factor for getting a second-hand car loan. You need to be employed for at least a year or have a stable business running for a minimum of three years.
There are six primary documents you need to obtain a second hand car loan. 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 3 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 fulfil your purpose while being easy on your pocket.
Self-financing is no longer the only viable option for purchasing a used car. Just 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.