During the deadly inaugural wave of the Covid-19 outbreak, there was an uptick in the desire for personal mobility. The used automobile industry, which was mostly unstructured before the epidemic, is now drawing interest from a variety of financial institutions and auto dealers. Second-hand cars on emi allows you to acquire your ideal car at a lower cost and with lower interest rates.
Top 4 Myths about second-hand car loan on EMI
We’re attempting to dispel some of its most popular used-car loan myths in this blog:
Myth 1: Lenders are the greatest borrowers for the used-car financing
Taking up a loan from your bank to buy a used car appears to be a simple and hassle-free solution. However, non-bank financial institutions (NBFCs) provide a highly customized pre-owned car loan. In comparison to banks, it offers an attractive interest rate on pre-owned car loans and has a higher approval rate. According to data, NBFCs control more than half of the used-car market.
Myth 2: Financial companies exclusively work in cities:
Due to a lack of reach, it is commonly assumed that financing companies/banks only issue used-car loans in metropolitan areas. NBFCs, on the other hand, are actively expanding in remote regions and focusing mainly on tier-2 and tier-3 markets. Numerous NBFCs are closing the gap and surpassing banks in rural areas, according to various sources. They provide used-car customers in smaller cities with a streamlined and hassle-free experience.
Myth 3: Financial firms don’t provide value-added services:
Only banks, as opposed to NBFCs, are thought to provide value-added services when it comes to used-car loans. Contrary to popular assumption, many NBFCs provide not only a complete Omni channel experience but also value-added services like protection and service packages. NBFCs are often seen as the most trustable and favoured choice among used car buyers because of these value-added business solutions.
Myth 4: The used-car loan can only be applied for by one person:
This is the most well-known of all the urban legends. Due to financial constraints, many people were unable to obtain a pre-owned automobile loan for their ideal car. However, you can still qualify for a combined used-car loan with your partner or a member of your family. You can add them as co-applicant and share the EMI burden with them. You will get better prices as a result, and you will be able to effortlessly fulfil your dream of having your dream car.
Several assist you in meeting your used vehicle loan needs as well as allowing you to celebrate with your families without restriction.
Second-hand cars on EMI: Keep the following in mind
A second-hand car financing not only makes it simple to repay in EMIs, but it also eliminates the inconvenience of needing to spend all of your hard-earned money at once. Read on to learn what to think about before taking out a loan to buy a used automobile.
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Loan Sum:
Not everyone needs the same amount of money for a used automobile loan. It’s critical to understand how much money you’re qualified for in terms of a loan. This is because the price of the vehicle should be covered by your used car loan. You should also determine that much of the used car payment will be used to fund the vehicle.
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Loan Eligibility:
Anybody can dream of owning an automobile. Finance is no longer an issue thanks to the availability of loans. However, eligibility can prevent many people from receiving the finances they need to purchase that used car they’ve had their eye on. Age limits apply to some financial institutions. Others prefer to lend to someone with at least five years of experience. Some even have requirements, such as the borrower staying with his or her existing work for further than a year. It can feel exhausting when it comes to loan eligibility, with all the twists and turns.
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Loan Paperwork:
Most lenders recognize that too much paperwork and delays might put a damper on your eagerness to buy a car. Consider submitting only six documents: A copy of your voter ID, passport, driving license, Aadhaar Card, or PAN Card; a replica of your income account financial records for the last three months; a copy of your salary slips over the last three months; a replicate of your Ration Card / Electricity Bill / Passport; a copy of your vehicle’s registration certificate; and a copy of your telephone/mobile bill are all required.
You, also, can be the proud owner of a vehicle! If you want to get second-hand cars on emi it’s not that difficult. You should search for little paperwork, customizable repayment, affordable interest rates, and rapid online acceptance, to name a few features.
