Having a car in your home is a necessity rather than a status symbol. It not only elevates your standard of living but even provides an efficient mode of travel.
Ideally, you may wait for years before you have saved enough to buy a car. Nowadays, you don’t need to do that as you can get a car loan.
Many people want to get a used car loan to save costs and yet start having an efficient mode of travel. Leading banks and NBFCs in India provide you with a used car loan to fulfil your wish of buying a car without saving for years.
A used car loan is an extension of a personal loan that is customized to meet your needs of buying a used car. If you want to avail of a used car loan, then you should consider a few aspects before doing that. Read on and explore more!
Used Car Loan EMIs Should Be Under Your Budget
After you have decided the car that you will buy and its cost, you can calculate the used car loan EMI by using the personal loan calculator such as EMI calculator. It is available free on a lender’s website. It will give you an exact EMI amount that will be payable per month, and you can then analyze if loan EMIs fit your budget or not.
Keep Track Of Your Credit Score
Your cibil score is the most vital thing that your lender will look at while processing your any loan application and a used car loan is no exception. Your cibil score should be high to become eligible for the loan. Having a good credit score in the range of 750 and more is proof that you won’t have issues in repaying the loan amount on time.
Take An Amount That You Will Find Easier To Repay
Some borrowers avail more money when they see that they have loan eligibility for a larger amount. However, what they forget is that they need to repay it, and the EMI amount will affect their monthly outlays. Thus, borrowing an amount that will only be easier for you to repay is what needs to be taken and not what you are eligible for.
You may get a lower used car interest rate if you can compare all available offers and then go for one that best matches your needs and repaying capacity. To do that, the best thing will be landing on a third-party website and comparing all available offers.
Look Out For Other Loan Charges
Your used car loan may also come with other expenses such as processing fees, late penalty fee, prepayment and personal loan foreclosure fee. Some reputed lenders may not charge you prepayment and foreclosure charges. Hence, the best thing would be to know the charges of all these heads.
If you are able to ensure these elements in advance, then you will be able to approach your used car loan prudently. If you are ready, then you can apply for it online and get a step closer to fulfilling your wish of having your own car.