Investing money in assets like cars is quite an expensive affair in India, and only a limited population can avail of substantial funds for the same. However, the perception is gradually changing as most individuals prefer redeveloped cars instead of brand-new ones, as the former is comparatively cost-effective.
Besides, the easy accessibility of a second-hand car loan online also plays a pivotal role in making them a popular credit option among borrowers.
Therefore, individuals planning to purchase a second-hand car in the future must learn about this financing option and its advantages in detail.
Benefits Of A Second-hand Car Loan
Before knowing the advantages of a second hand car loan online, one should understand that this sector is growing at a great pace and beating the new car market.
Various financial institutions extend lucrative offers to customers when opting for an old car loan. However, just like it is essential to select the right car for the family, it is equally crucial to choose the appropriate lender who understands your financial requirements and constraints.
Take a look at the advantages of acquiring a second-hand car loan online in India –
1. Adequate borrowing amount
Since the cost of used cars is usually lower than brand new cars, individuals have to borrow a lower credit. This will further ease the repayment process, and individuals can fulfill their dreams of owning a car without spending a substantial amount.
However, the sanctioned credit will depend on the borrower’s eligibility and the details of the car mentioned below –
- Present valuation of a car
- Make and model of it
- Service history of the car
- Depreciation rate
- Accident history
- Any modifications made
- Documents including Form 32 and 35
2. Flexible eligibility criteria and minimal documentation
Individuals need to meet eligibility parameters when opting for a second-hand car loan online like other financial products. Although the parameters differ across lenders, the basic ones remain the same. The requisites include repayment capacity, credit score, vehicle’s current value and more.
Besides, borrowers need to produce certain documents to obtain their desired amount. The lenders ask for these documents to examine borrowers’ reliability. Some of the documents include –
- Car’s registration
- Receipt of road tax
- Car invoice
- Third-party insurance policy etc.
- Employment proof
- Bank account statement etc.
For this type of loan, the documentation process is conducted online.
3. Flexible tenor
Usually, a second-hand car loan online offers a flexible tenor of approximately 5 years. It allows borrowers to repay the loan conveniently and plan their finances effectively.
After learning about the benefits, individuals can avail of the credit by assessing their repayment capacity.
Alternatively, if borrowers plan to buy an expensive car, they can choose high-end financing options like a personal loan. This credit option offers a substantial loan amount and does not come with any end-use restriction. Moreover, the car’s age and condition play no role in determining credit eligibility. Besides, borrowers must have a clear idea about personal loan documents and arrange them accordingly to avoid complications while applying for the loan.
Borrowers meeting the eligibility parameters successfully and with a good repayment history can negotiate a competitive personal loan interest rate against their loans. Besides, a personal loan is way more convenient to repay than a traditional auto loan for purchasing a brand-new car.
However, to maximize the benefits of this credit facility, individuals need to know everything about personal loans for used cars. Besides, the affordable interest rates and plausible loan terms ease the repayment process.
Since this financing option does not require any asset as collateral, the disbursal process for a personal loan is comparatively faster than other advances. Apart from these, borrowers need to know about the ideal credit score for personal loans and improve it if required to ensure a hassle-free loan approval.
Furthermore, before knowing how to apply for personal loans, individuals must check all the associated loan fees and charges to eliminate additional borrowing costs.
When borrowers know how to get personal loan, they must settle for lenders offering flexible loan terms and attractive interest rates that suit their financial requirements. For instance, Bajaj Finserv extends pre-approved loan offers on a wide range of financing options, such as personal loans, business loans, credit cards, etc. These exclusive offers significantly expedite the loaning procedure and save time. Therefore, intending borrowers can check their pre-approved offers by mentioning their essential credentials.
According to a recent report, during the end of FY2020, approximately 4.2 million second-hand cars were sold in India. On the other side, the sales report of new cars recorded around 2.8 million, which is nearly 50% less than the sale of second-hand vehicles within this period.
Hence, these are the benefits of a second-hand car loan online that boosts the market of this segment. Alternatively, they can also count on personal loans and secure the best deals.
Read Also: 5 smart ways to avail of a pre-owned car