Used Car Loans
Used Car Loans - An Overview
Leading banks and NFBCs offer loans for purchase of a pre-owned car. There is a large market for pre-owned vehicles in India. There are many who would sell their almost new car for the love of a new model, brand and style of the car and on the other hand there are many would wish to purchase a pre-owned car just to meet their requirement of car at home. Unlike the earlier times where people would sell their vehicles individually now days there are a number of dealers that brings the sellers of private vehicles and the buyers of pre-owned vehicles on a single platform to meet the requirements of both parties i.e. to sell their car at good rates and purchase of pre-owned cars at affordable rates so that both do not have to compromise on anything. The dealers also make a pre-owned car look like a brand new one by servicing the pre-owned cars to ensure that the seller get the right price for their vehicle and pre-owned car buyers get the right deal. Just like there are several sellers and buyers of pre-owned cars there are number of leading banks that offer pre-owned car loans in India. Let us quickly see the features of a Pre-Owned Car Loan
The banks and non banking financial organisation offer loan amount upto Rs.12 Crores for purchase of a Pre-owned car. The loan amount that the bank lends for purchase of Pre-owned car depends on eligibility of borrower. The eligibility of the borrower can be ascertained at Letzbank portal for free. Since your eligibility is closely linked to your credibility to repay the loan you must check your credit score before you apply for pre-owned car loan. You can check your credit score for free at Letzbank.
Rate of Interest:
The interest rate at which pre-owned cars are sold in the market is slightly higher than the interest rate of new car loan owing to the fact that there is a higher depreciation value and therefore higher risk associated with the purchase of a pre-owned car. You can borrow a Pre-owned car loan at rate of interest ranging from 13.10% upto 17.75% per annum.
Pre-owned car loan can be borrowed for a loan tenure upto 84 months depending on your convenience to repay the loan to the bank. If you can afford to pay higher EMIs you will be able to cut down the interest charged on purchase of your pre-owned vehicle.
Processing Fee is solely determined by the pre-owned car loan assigning bank. There are banks that offer pre-owned car loans at fixed processing fee which is a fixed amount which gets deducted from your pre-owned car loan amount once you receive an approval, whereas others charge a processing fee on percentage which can be anything upto 2% of the cost of the vehicle.
Fore-closure charge is a penalty that is posed on you if you close your pre-owned car loan in the middle of the loan tenure. There are banks that levy this penalty whereas there are others who do not. Before signing up your pre-owned loan agreement you should look for this feature to be able to make a pre-payment and close your pre-owned car loan. The banks may levy a penalty from 5% upto 10% on the outstanding loan amount.
You can Search>Compare>Apply for pre-owned car loans at Letzbank and get benefit of waiver on service fee on online applications. You can check your EMI and see the loan tenure and loan stages of your pre-owned car loan by making use of accurately designed tool on Letzbank portal. Once you apply for any loan and e-save your documents in a Document Locker you can come back and re-apply for any other loan without having to submit the same documents over and over again and also save yourself from identity theft.