What if someone told you that you can have the same thing you want, with the same features and design but at a price much lower than what it is worth? This is the tagline that has been pushing the used car market to great heights. The customer satisfaction and widening consumer base can be seen from the annual sales of used cars. There are some government policies which are responsible for further propelling the used car market, especially the revised GST on used cars. The GST on used cars has been lowered from 28% to 12%-18% making it an even more lucrative purchase. The used car market has witnessed an amazing growth with sales rocketing to the 4 million mark in the fiscal year of 2018. This was recorded to be 1.3 times the value of the new car market.
What all benefits can you reap by opting for a used car loan on EMI?
Even if you can get a used car at a reduced cost, it still would not be a feasible option to pay the whole amount in a single go. Even if you are capable of paying the whole cost all at once, you need to keep in mind about any financial emergencies that might come up in future. Do not worry because the used cars loan has got it all covered for you. With a used car loan you can make the purchase almost instantly without having to pay the entire cost upfront. There are a lot more benefits offered by a used car loan that you can take advantage of which will make your buying experience seamless and convenient. And, it becomes more beneficial if availed from a trusted and reputed company like Muthoot Capital Service Limited, which is a sister-concern of Muthoot Fincorp Limited – One of India’s biggest NBFCs which comes with a legacy of more than 132 years.
Let’s us have a detailed look at some of the interesting attributes of a used car loan.
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Unlike other loans, a used car loan does not overburden you with colossal documentations. A used car loan can be applied for with minimal paperwork, making it a matter of complete convenience. Enquire the concerned financial institution about the necessary documents required for the procedure beforehand to leave no chance for any sort of ambiguity.
Hike your credit score
Used car loans let you build up your credit score. This will help you enhance your financial portfolio in case you have to opt for other kinds of loan in future. A good credit score adds immense value to your profile, hiking up your chances to get the lenders approval in case you apply for other kinds of loan in future.
Car loan for used cars poses very basic eligibility criteria which an individual needs to meet to qualify for the loan. This makes it easier for a large section of the population to avail used car loans, to bring their dream cars home. Look online or enquire the customer care officials of the concerned financial institution about the eligibility criteria since they might differ from lender to lender.
There is no need to count your savings for years and wait for it to add up to the cost of the car. With a used car loan, get the entire loan amount credited to your account in no time. The simplified documentation process speeds up the verification process letting you have your car delivered to your garage right away.
Flexible repayment option
Used car loans make it super convenient to repay the loan. The borrowers are free to set the tenure and repayment option as they like. Although there is a limit to which the tenure of a used car loan can be stretched and is subject to change depending on the lender. The well-structured equated monthly instalment option lets you repay the loan without disrupting much of your monthly budget plan. Used car loan EMI calculator lets you know the exact value of the EMI that you are supposed to pay beforehand to estimate the feasibility. With a used car loan EMI calculator, you can deal with the finances better in advance to maintain financial stability.
Attractive interest rates
Financial institutions offer used car loans at competitive interest rates. This can significantly reduce your interest payments, letting you repay the loan amount faster. Investing a little bit of your time in researching the interest rates offered by various financial institutions will let you find the one offering the best terms. You can take help of sites that offer a detailed comparison between different loan schemes, simplifying your selection procedure.