Many people prefer to go for used cars for their first car driving experience. Apart from being economical, used cars are a good way to add some driving expertise in your skills before moving on to brand new car. But in present circumstances, it is no less than a nightmare to arrange for a pre owned car loan. You might need some lessons on how to apply for used car loans before reaching any bank or NBFC for financial aid.
A number of banks and NBFCs have been offering used car loan in India, the prime players are ICICI, HDFC, Tata Capital, Fullerton Credit, Magma Fincorp, etc. However, it is still a herculean task to obtain pre owned car loan from any of these. There are a number of factors that play huge role in this respect. For the starters, the model, brand worth, and car’s age are the prime factors that get first place for granting car loan for any used car. Stay mentally prepared as the loan for used car will cost you a little more than that for a new car.
In India, the age of a given car and loan tenure cannot exceed 7 years under any condition. So, the oldest car that can avail bank’s financial help for you cannot be older than four years. Only when your car is four years old, you can receive a loan for three years.
When you have finalized the car for which you need loan, the bank would send a valuation expert to your place for realizing its value. The valuation process would include determination of car’s condition, number of kilometers it has covered, and its model. And if the expert gets satisfied with this information, the bank would proceed with rest of the paperwork.
