There are many benefits of taking a used car loan, which can vary depending on the model and manufacturer. However, a used car is usually cheaper than a new one. Not only do you get to keep more money in your pocket, but you will also be free from the worries about maintenance costs that come with most new cars. Used cars are already driven by someone else so you can easily find out if they will serve your needs. These top benefits of taking a used car loan should help you make an informed decision when it comes time to get behind the wheels.
How to Get a Used Car Loan in India?
There are many NBFCs providing a second hand car loan in India, including Muthoot FinCorp. Check the eligibility conditions, complete the application form online and submit all necessary documents for verification. If your documents are verified and if you meet the credit criteria, you will receive confirmation from the lender about approval of your loan within 3 days.
These documents include two passport size photographs, proof of identity, age proof, current and past three months’ bank statements, employment proof and LPI (Loan Payment Instalment). Before applying for the second-hand car loan, make sure that you have read through the pre-approved car loan agreement thoroughly. Also note that the interest rate will differ from one lender to another.
Benefits of Used Car Loan from Muthoot FinCorp
The used vehicle loan offered by Muthoot FinCorp is ideal for people on a lower budget in search of used vehicles. Reduced rates, the option to spread the cost into fixed instalments, along with payment holiday options are some of its major benefits.
- High Loan Amount
Second-hand cars are increasingly becoming a dream come true for those who don’t want to spend an exorbitant amount buying a vehicle of their choice. But going window shopping doesn’t help much. Since used cars are expensive and with the prices rising every passing day, it’s important to be financially prepared before you start looking for used cars. Here’s the good news – with a loan amount for buying a second-hand car being approved at a large value of Rs 50 lakhs, many young people will now be able to get their hands on those vehicles they’ve always wished for.
- Unmatched Interest Rates
Though interest rates for used cars are high owing to the risks associated with both the buyer and the lender, those offered by Muthoot FinCorp for a Used Car Loan are unparalleled. While most lenders opt for around 65-80% of the estimated value of the purchased car as their down payment, Muthoot FinCorp lends a maximum of 95% of the value.
- Flexible Terms
Our Flexible Term loan allows you to decide on all terms – loan amount, tenure and EMI. For added convenience, you can opt for other payment methods – post-dated cheques, online payments or ECS (Electronic Clearing Service). Plus, take advantage of an auto-debit facility where the EMI is routinely subtracted from your bank account.
- Minimum Paperwork
The process of getting a used car loan has been streamlined with our platform. You do not need to run around from one place to another to get the documents necessary for a loan. Everything can be taken care of on the platform. Even the document required for a used car loan is very basic and minimal, which is why you will find the entire process hassle-free and very well-organized.