Getting a luxury car is everyone’s dream at present. However, we often realise that getting a brand-new car isn’t as easy as it feels. A car is necessary at times to fulfil transportation needs. Getting a brand-new vehicle is costly, and one may not have ample funds. However, it does not mean that one cannot enjoy travelling in a car due to a lack of funds. Many people apply for a personal car loan to acquire the car of their dreams. If one doesn’t want to invest heavily in a car, they can apply for a used car loan. Read on to know the pros of getting a used car loan in 2022.
Understanding the process of used car loans
Many banks and digital lending sources offer loans for buying a used car. They even assist the consumers in choosing a used car that fits them. Once the consumer selects a used car, they can get up to 100% of the car value as a loan. Lenders analyse the value of a used car before offering a loan. One can also get a loan greater than the value of the used car. It usually happens with salaried consumers applying for a used car loan.
Loans on used cars work like any other loan. For example, one must repay the used car loan within the pre-decided tenure. Consumers are also allowed to repay the used car loan in pocket-friendly EMIs. Apart from processing fees and interest charges, many other fees are associated with used car loans. Consumers have to pay the RTO transfer fee, documentation charge, rack interest rate, and other charges. Overall, used car loans are beneficial for acquiring funds right away.
Pros of used car loans in 2022
The benefits of acquiring used card loans are as follows:
• Along with getting a used car loan, you will get many other facilities. Many lenders offer end-to-end assistance, from car research to car transfer. One can choose the right used car that fits their budget and transportation needs.
• Without any doubt, the rate of a used car is always greater than a brand-new car. Therefore, one has to pay a lower principal amount for a used car loan. Consumers can quickly repay a used car loan via pocket-friendly EMIs.
• Many digital lending sources offer personal loan EMI calculator to consumers. Applicants have the freedom to choose their repayment structure based on their earnings for a used car loan. However, the EMI amount and interest rate may change according to the repayment structure.
• Many people apply for a used car loan for getting tax exemptions. For example, consider Section 80E of our nation’s Income Tax Act. It says that a loan for a used car can get you a tax exemption. However, the only condition is that the used car is bought for commercial purposes.
• Applicants don’t have to visit the RTO office frequently for getting a used car transferred. Many lenders offer RTO transfer services to loan applicants in India. Applicants can also rely on lenders for expert advice to buy a used car.
Know the requirements for a used car loan in 2022
One has to fulfil certain conditions for acquiring a used car loan in 2022. If applicants ignore the criteria for a used car loan, their loan application will be rejected. Some general requirements for acquiring a used car loan in 2022 are as follows:
• Most lenders offer used car loans only to salaried individuals. Very few lenders offer a used car loan without any stable income in India.
• Some lenders have an age limit on used car loans. Usually, the age limit for acquiring a used car loan is between 21 and 65 years.
• One needs to possess a healthy credit score and report to get a used car loan. A bad credit score harms creditworthiness and may lead to the rejection of a loan application.
• Make sure you have cleared the past debts to acquire a used car loan quickly.
You don’t have to step out of your house for getting a used car loan. Choose a digital platform and apply for a paper-less used car loan. Get a loan for buying a used car in 2022!
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