It is considered a milestone when you are trying to own a car, especially in a country like India. We have been a family with an income graph line between medium to lower-income groups. Buying a car happens to be one of the most important events in anyone’s life in India. With 66% of people being middle class, the income group has opened up various opportunities that increased the demand for quick or pre-owned car loans.
However, some financial institutions tend to disburse the pre owned car loan only in the case of passenger cars. And for the commercial vehicles, the banks provide fewer funds. If you are thinking of any pre-owned car loans, then you need to consider these factors.
The overall budget
Consider the overall budget of the purchase so that you can manage your finances in a better way.
Tenor period
Most banking institutions and non-banking financial institutions offer a tenor period of 60 months for the loan amount.
Eligibility requirements and documentation
One must be above 18 and a resident of India to get a pre-owned car loan. However, if you are salaried, you need to have 2 years’ experience. For business owners, one needs to have a minimum of 1-year of experience. The documentation required for this is valid income proof, address and identity proof, all the KYC documents, and some passport-sized photographs.
Any bargains
Financial institutions and non-banking financial institutions tend to charge a higher rate of interest. You would get a rate of interest according to the tenor period, credit score and the down payment that you make. There are different interest rates for different people. You must consider the various options before you choose anyone. The ancillary charges and processing fees should also be determined. It tends to increase the repayment amount.
Paper works
One can request the insurer to check for the vehicle and its paperwork. It would help you to ascertain whether it has any claims registered in the past. Before getting the vehicle, you must be sure that you have clean paperwork. Also, get the registration book that includes the vehicle’s registration date and the taxation book, which speaks about the status of the tax paid. Along with that, you must also ask for the invoice that includes the engine number, chassis number, delivery date, and many more. PUC certificates and other important documents are also necessary and need to be changed before getting the vehicle.
Inspection
When choosing your vehicle, you need to ensure that it does not require many repairs and is in shape. There should be no overage charges when you are using the car on the road. Most of the buyers tend to avoid the test drive. One should never avoid that. It would be a good decision to get quick loans that takes much more time to process than to get any new car loan. The lending company would provide you with a surveyor who would confirm the vehicle’s wear and tear and age.
Shopping for your vehicle happens to be one of the most exciting things ever. A person must consider a good lender who offers the overdraft loan facility. Also, you need to do some research before you tend to apply for any pre-owned call loans. However, once you get a personal loan, it can help you to purchase your dream car.
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