Owning a car is a dream of many people, but only a few of them can afford to turn this dream into a reality. The main reason is the cost, as one unit can cost lakhs of rupees. You may consider taking a car loan and buy a new car. But, have you ever considered taking a loan to buy a used or second-hand car? Yes, you heard it right. You can enjoy a handful of benefits on loan for a used car.
Before diving into the sea of benefits, let's understand the know-how of fetching a second hand car finance.
- Taking loan for a second-hand car is very easy and convenient.
- Check your eligibility criteria. According to NBFCs, you should fall between the age group of 21-65 years.
- Your monthly income should not be less than Rs. 20,000.
- A one-year job experience is a must.
- Submit a correctly filled application form with essential documents for verification of your credentials.
- After thorough verification, the loan is consigned to the car dealer, and you will get the car.
The process of taking a used car loan is quite simple.
Benefits of loan for a used car
There are many benefits to borrowing a used car loan. You can make a second-hand car yours easily by taking up a loan and avail benefits of a car loan for a used car.
Let us see in detail what all benefits you can enjoy other than owning a car:
- Higher loan amount: There is no upper limit of the loan amount when borrowing for a used car. You can avail of a loan as high as Rs. 50 lakhs.
- The low price of the car and low loan amount: The used car's cost will be less than the new car. Thus, the principal loan amount will also be less, which brings down the loan interest rates.
- Many lenders offer flexible tenure and EMI options.
- You can complete the used car loan process online. You need to fill and submit the application form along with all the documents required by the lender.
- Instant loan for a used car provides instant used car loans. Not only does it approve the instant loan, but also you can use the residue amount for repair of the second-hand car.
- You can also enjoy tax exemption on the loan amount for a used car. As per section 80E of the Indian Income Tax Act, the car should be for commercial purpose for tax exemption.
Owning a used car can be a great option to be in the budget. You can easily avail of the used car loan and turn your dream into a reality.
