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Top Five Best Benefits of Used Car Loan
Second-hand car loans have become quite popular of late owing to the rise in demand in the automobile sector and the need for easy credit financing solutions. Simply put, a used vehicle loan is a loan that you can get from various financial institutions to buy a second-hand car. The approved loan amount depends on various factors like the age, condition of the vehicle and valuation that the lender arrives at. The rate of interest on the used car loan depends on two factors; one is your credit score, and the second is the value of the second-hand car. If your credit score is high, your rate of interest would be better.
These days, getting a used car loan has become a very easy affair - you can simply you can get the loan amount disbursed to your respective bank accounts from the comfort of your home. Availing of a second-hand car loan is simple and convenient. You need to check if you fall under the eligibility criteria for of availing a used car loan. In order to meet the eligibility criteria for financing a second-hand car, you have to fulfil only a few conditions. The loan amount is sanctioned to salaried employees, self-employed people or agriculturists. The individual should be between the age of 21 to 65 at the time of application and at the end of the loan tenure, respectively. The minimum net salary should be INR 15,000, or the net profit should be at least INR 1,50,000 per annum.
Individuals who are self-employed or business owners who have taken a used vehicle loan for commercial purposes can also enjoy tax benefits on a car loan for reducing the taxable income by the amount of interest that they pay in a year. However, the same tax benefit due not apply to salaried employees. When it comes to the benefits of a used car loan, there are an array of benefits available that an individual can get.
Benefits of Used Car Loan
Getting a second-hand car loan to finance your dream car has become very easy nowadays. Individuals can now experience simple processing, speedier loan acceptance and utmost freedom when they choose to avail a used vehicle loan. The top five benefits of a used car loan include:
- 1. Flexible Repayment Options
Many financial institutions offer you the flexibility to choose your loan amount, repayment tenure and EMI period. This way, you can plan your budget accordingly and finance a used car at your convenience.
- 2. Attractive Interest Rates
Since the cost of a pre-owned car is relatively cost-effective compared to a new one, there and many banks that offer car loans with low-interest rates for financing a car. The rate of interest that financial institutions charge is quite attractive, which helps you plan your budget before you finalise the second-hand car.
- 3. Quick Approvals
Nowadays, financing a used car has become very convenient as the whole procedure of getting a loan can be conducted online. The loan approval and disbursement process are very quick and convenient, which makes the entire loan process so simple.
- 4. Easy Documentation
To avail a second-hand car loan, the documents required are very basic and minimal, making the documentation process hassle-free. The documents that you need to submit at the time of loan application vary from financier to financier. Usually, valid identity proof, income proof, asset proof, valid address proof and photo proof are some of the documents that you need to keep handy while applying for a used car loan.
- 5. Low Down Payment
Some financial institutions offer you 100% financing on pre-owned cars which is also known as a loan on used cars with zero down payment. If the value of the used car is lower than the amount sanctioned as a loan, there are high chances that you get the full amount as a loan.
If you are looking for a used car loan at competitive prices that also comes with great benefits, then you must match the aforementioned eligibility criteria. To back you up with quick loan processing, attractive interest rates, minimal documentation, and easy EMI options that suit every individual, Muthoot Money Limited is a wholly owned subsidiary of Muthoot Finance, which is India’s no. 1 NBFC brand and known name in India. You can check your EMI through a used car loan EMI calculator so that you can make a calculated decision when it comes to financing your dream car. With Muthoot Finance by your side, you can get instant loans for all your second-hand and new private and commercial vehicles without any hassle from the comfort of your home.