A Primer On Used Car Loans:

There are plenty of good used cars available in the market and you can get them at a far cheaper price than a buying a new car

. Besides the availability of the used car loans have accelerated the sale of used cars in India. There are some financing institutions provide used car loans at a very low interest rate. If you wish to avail used car loan you must know that the used car loans usually have higher interest rate and it also includes onetime road tax, vehicle registrations fees and insurance premiums.

The Criteria for getting used car loans from a public sector banks in India are discussed below:

The person seeking used car loan should be aged between 21 to 65 years.

Used car loans are not forwarded to individuals whose annual income is less then Rs. 100,000 The car you wish to buy should be more than 5 years old from the date of its manufacture You must pay 15% margin amount of the total on road value of the car upfront before applying for the loan for the remaining amount. The period for repayment of the loan varies for different banks, but it usually ranges between 60 to 84 months. The interest applicable on the loans also differs depending on the bank from which you obtain the loan, typically the interest is charged between 12% and 13% per annum.

Apart from the public sectors banks, a lot of private banks also offer used cars loan. But no matter if you are borrowing loan form a public or private bank that are certain documents you need to produce to the banks. Usually, the banks ask the following papers:

You need to submit the last 6 months bank accounts statement

Residence proof, which includes passport copy, ration card or electricity bill

Passport size photographs

Bankers certification to verify your signature

If you are a salaried employee you need to submit Income Tax returns file for the last 2 years and if you a self employed person, you need submit 3 years income tax returns file.

Salaried people also need to provide the latest salary slip.

Today, a lot of used cars buyers are going online to look for loan options. Since the online loans are easy to avail and offer various convenience to the customers thy have become a huge attraction for the car buyers. With the drastic rise in the demand for used car loans, there has been significant rise the number of lenders as well. To avail an online loan you just have to fill and submit the application form online and if the lender is satisfied you would get your loan approved within few hours. To ensure that you get the best deal it is imperative that you read the terms and conditions of the loan and also take your time to calculate the monthly EMI and interest rates. Depending on your research choose the best deal and drive away with the car you wish to own.

by: Harsha Maitra

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