Car loans, both new and second-hand, are available through several financial organizations in India, including banks and non-banking financial companies (NBFCs).
However, the interest rate differential between new and used car loans might be so significant that it becomes a determining factor.
When individuals’ budget is tight, they can opt for a second-hand car loan to get their dream car.
When looking for a used car loan, it is critical to select the right lender. There are many things they need to consider, such as the interest rate, tenure, services, other charges, loan amount, etc.
In this article, let us look at some tips for choosing the best second-hand car loan and which bank is the best for a second-hand car loan.
Tips for choosing the best-used car loan
A few tips for choosing the best second-hand car loan are:
- The most important tip is to evaluate the lender’s credibility, as there are many lenders in the market, and to ensure that one receives the best deal.
- Different lenders charge varying interest rates; therefore, individuals need to compare second-hand car loan interest rates before taking out a loan.
- The eligibility conditions are one of the most crucial things to examine before taking out a second-hand car loan. The eligibility requirements will vary across lenders.
- To receive the best deal, people need to review the documentation that a lender requires.
- Further, the repayment options provided by lenders can also be considered by applicants.
What is the best bank for a used car loan, and why?
Several banks and NBFCs offer used car loans, and some of the best banks are HDFC Bank, ICICI Bank, Axis Bank, and AU Bank.
However, one of the NBFCs which offer the best second-hand car loan is Muthoot Capital.
Getting a used car loan from Muthoot Capital has several perks.
- The loan application is straightforward, and it will be approved and disbursed fast.
- The application process is seamless, and applications can even be submitted online. Furthermore, the paperwork required is low.
- In some plans, borrowers can get up to 100% of the car’s worth. A lesser down payment allows them to put money aside for unexpected expenses.
- Second-hand car loans range from 12 to 60 months in terms of payback.
- Muthoot Capital offers attractive interest rates on used-car loans.
- The used car loan eligibility conditions are easy to meet, so almost everyone may receive one.
- A person can borrow between Rs. 50,000 and Rs. 10 lakhs. Moreover, prepaying the loan is possible for a small fee.
- Borrowers can also use the second-hand car loan calculator to calculate their EMI based on the loan length and interest rate. This will assist them in budgeting and making an informed decision.
When taking out a second-hand car loan, borrowers must consider all of their alternatives and select the best loan for their circumstances.
A person needs to carefully study the loan’s terms and conditions to learn about the associated charges. It is also crucial to select a reputed lender that will be open and honest with them throughout the loan procedure, thus making it easier to get a second-hand car loan.