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5 tips to avail maximum benefits of used vehicle loan

2nd April 2019 Print

If you have recently learnt driving and want to buy a car, it’s a safer option to go for used cars. The Indian used car market has grown exponentially in recent years, and as it continues to grow, one can expect to land up a good deal while buying a used car. After all, for every newly purchased car, there will be an old one that will be either replaced or junked. While more and more credit providers are offering lucrative loan deals for buying a used vehicle, it only sounds like the right decision, to invest in a used car via a second-hand car loan

Till a few years ago, financing of used cars would have sounded very difficult and in some cases even expensive. Now, with credit agencies like MoneyTap, which also have an online presence, loan seekers can expect a good bargain as far as financing of used vehicles is concerned. 

Here are 5 handy tips to avail for maximum benefits via a used vehicle loan.

Borrow Now Pay Later

For any vehicle, since down payment is the biggest challenge, you can opt for a used car loan which will provide you with required funds to make the payment, and you can make repayments as per your convenience. New age credit providers are all about focus on customer flexibility, and hence EMIs could be designed as per your monthly financial inflows. In a real sense, this proves to be a very stress-free choice.

No Heavy Interest Burden

Interest rates in case of used car financing range between 13 to 24 per cent depending on a lot of criteria like credit standing of loan seeker, duration of repayment, age factor, income, etc. The key here is that you need not pay interest on the entire amount that has been granted to you. Interest gets calculated on the component that you actually end up withdrawing out of the sanctioned loan. In a nutshell, you can be assured of transparency around interest calculations. 

Flexibility of Withdrawal

Once you opt for a used car or vehicle loan, you can adjust the finances based on your requirements. This means that you can withdraw from the allotted funds according to your payment schedule for the car or vehicle. Benefits of such set-up are no comparison to the stress levels you have to undergo if you have to fund for a vehicle yourself.

Relaxed Eligibility Criteria

As long as you meet the minimum age criteria of 23 years and a minimum salary requirement of Rs. 20, 000 you can avail the used car loan. Most of the banks and other non-bank credit providers are setting up very relaxed eligibility criteria so that more and more consumers can benefit out of such facilities.

Smooth Processing

Limited documentation requirement is yet another key benefit to expect from used vehicle loans. ID and address proofs are something that most of us can manage to keep ready, and this is exactly the requirement of credit providers. The biggest benefit of all is fast and smooth loan processing which results in the availability of funds within as less as 24 hours.

Millennial consumers expect the fastest possible delivery of products and services. So why not avail for quick loans and own a used vehicle even quicker!