Admin | 27 Apr, 2024
How to Get Finance for Used Cars in India
Getting finance for used cars had been a complicated thing earlier. However, with tough competition among banks has made banks think of varied options to reduce liquidity. Leading to extending loans to used cars as well. The reputed and top used car dealers in Kerala, like Indus Used Cars, assists clients in obtaining funds from the banks or financers, according to the customer’s choice. With the professional support from the pre-owned car dealership, the process will become unfussy and hassle-free.
Things to Consider Before Proceeding with Used Car Loan
It has become an easy process to obtain a used car loan. However, you need to contemplate certain things before you think and plan the financing.
How Much You Can Afford
It is not advisable to overburden your budget with a hefty car loan. Be realistic when you think of the financing. Carry out a detailed evaluation and calculation of the budgetary impact. It should not happen than the loan affects your living standard or you have to procrastinate on entertainment, educational or travel plans of family or children.
How Much You Can Get
The amount allowed for you will solely depend on your income and financial capabilities. The banks will also check your CIBIL score before approving your loan. The finance approved may also differ accordingly.
Interest Rate
Almost all the banks will have similar interest rates for second-hand car loans. However, even a minor variation can cause a large difference over a period.
Foreclosure Charge
Some banks have foreclosure charges or pre-payment penalties if you pay the complete amount before the scheduled period. Check with the bank whether they have any such charges. It’s advisable to avoid those banks for obtaining a used car loan.
Hidden Charges
Mainly private banks include some hidden charges in the loan, which they will not reveal you during the initial discussion or while proceeding with the process. Ask the representative of the bank to clarify on all the charges and additional expenses including processing fee, and documentation charge, in advance. Don’t allow the bank to deceive you.
You can get the information about the top used cars to buy in India if you are confused about which car to buy.
Documents Required for Used Car Finance
The mandatory documents to be submitted along with the application for used car finance include the following:
- Proof of residence
- Photo identity card (Driving License/ Aadhar card/ PAN card/ Voter’s ID card etc)
- Statement from Bank for the last six months
- Income return statement or Form 16 (for salaried personnel)
- Income tax return for the last three years (for self-employed)
How to Get Used Car Finance?
As we have discussed in the initial section of this article, getting used car finance has become simple nowadays. Our professionals will assist you in meeting the bank representative for discussing the loan details, amount eligible, EMI and other important factors.
Let’s have a brief look at the procedure for obtaining used car finance from the bank of your choice:
1. Check and Compare
You can check the interest rates and other criteria of different banks through their website. Although the websites will not have many details, you can gain some idea about it. Further, you may discuss with their representatives about the interest rates and approximate EMI.
2. Meet the Bank’s Representative
Once you have decided the bank to go for, you can visit their branch. Or we can arrange a meeting with the agent at your office or at our showroom. Discuss all the details with him or her. Make sure that you have the complete info regarding the loan after the discussion.
3. Submit the Documents
Arrange all the documents including last three months’ salary slip, form 16 of the previous three years and identity proof and submit it along with the duly filled application to the bank.
4. Get Your car
You can pay the difference between the cost of the used car you are buying and the loan amount approved, to the used car dealer. The bank will pay the amount directly to the dealer and you can own the car. The used car loan process has become so fast that you don’t have to wait much to own the car.
Do contact us if you have any more doubts on how to get finance for a used car.