The introduction of second hand car loans to the Indian financial market significantly impacted the vehicle ownership habits of Indians for good. They no more need to rely on their hard-earned savings or tad costlier personal loans for the purchase of used cars. With the convenient availability of second hand car financing, purchasing your choice of vehicle model has only become easier.
To avail of the advance without much hassle, you need to take care to gather a few essential details though. Such information would also help you make this important financial decision thoughtfully, ensuring maximum affordability. Let’s take a look.
Top Features to Look for the Best Used Car Loan
Leading lenders bring along the following favorable features with second hand car financing.
- Financing of high quantum for all car brands
Lenders today provide financing for all used car brands and models, allowing you to purchase your choice of vehicle. Further, the financing quantum is also usually high, sufficing the funding need for a selected car model purchase. With some of the best lenders, it is possible to secure funding as high as Rs.50 Lakh for second hand car purchases.
- High loan to value
Used car financing also involves the concept of LTV or Loan to Value ratio, a set percentage that defines the maximum financing one can avail in proportion to the resale value of a used car. It is best to look for a high LTV to avail maximum funding, whereby LTV can go up to 75% with reputed lenders.
- Fast approval with easy disbursal
Lending institutions also provide quick approval of these advances to eligible applicants. Further, with all documentation in place and completion of the required down payment, disbursal can also be expected in a short time, allowing you to access funds at the earliest.
- Tenure flexibility
Finding the best financial institution also allows you to secure maximum tenure flexibility for loan repayment, of say up to 5 years. A flexible tenure not only allows you to avail necessary funding suitably but also helps keep repayment affordable, through easy EMI payment.
Eligibility and Document Requirement
After having selected a suitable lender to borrow the funds from for your used car purchase, fulfilling their minimum requirements would be the next step to follow. The criteria essentially include eligibility and document requirements. While the eligibility criteria revolve around the individual’s age, income, repayment capacity, residential status, etc., the documents serve as proof of one fulfilling these requirements.
It is ideal to check whether you fulfill all eligibility requirements or not and arrange necessary documents before applying for a used car loan.
Once you have completed all these requirements, you can proceed to apply for a second hand car loan with your selected lender. It is ideal to choose the online mode for your loan application as it hastens application processing and also eliminates unnecessary paperwork to fast-track approval and disbursal.
When availing of the required second hand car financing, it would also be smart to check your credit score and take steps that help improve the score. It should help negotiate for the most favorable features on your used car loan.
