Chennai City is amongst the four metropolitan cities of India. The bustling city supports millions of people and jobs. Therefore it is but natural that the people living here enjoy better pay scales and spending ability. This has translated into booming demand for automobiles whether two wheelers or four wheelers. Even though the automobile sector is seeing a slight slowdown the used car business is thriving! According to a report by Deloitte, the used car market is as big as the new car, at present.
There are a number of reasons that have fuelled this sector. First and foremost is an emerging group of two-wheeler owners who want to graduate from two to four wheeler but new car is not affordable for them. Most of them have families so usually require big cars however sedans or SUVs are still at a higher price point and thus unaffordable for most people in this group. Therefore they prefer buying a pre-owned car because it is the only way they can purchase a bigger car that suits their pocket too. Online portals have also led to a growth in the used car market. Many of the corporate entities have also entered this segment now. This has brought about reliability in the quality of the used cars being offered by them for sale. Up to four years old cars sell the most as they are in good condition and not driven too much. In India it is not the older age group but young people under 35 years driving the used car market!
Features of Used Car Loans
Banks and financial institutions offer loans for buying a used car however the procedure to avail this kind of loan differs slightly from the new car loan. Valuer plays an important role in availing used car loan because he is responsible for arriving at the fair value of the car. In a new car valuation is not done because the car is new and there is no depreciation on it because of which its ex-showroom price is considered for loan. After valuer assesses the fair value, the lender approves the loan amount based on such valuation. At letzbank we offer all types of car loans including used car loan. The salient features of this loan are as follows:
- The loan comes from the most reputed names in the market like ICICI Bank, State Bank of India, Kotak, HDFC, Axis bank and SBH amongst others;
- Loan is granted for an amount up to Rs. 12,00,00,000 at interest rates starting at just 13%.
- The standard tenure offered ranges from 60- 84 months meaning 5 to 7 years;
- The processing fee is charged either at percentage or flat amount basis. Standard range of processing fee percentage is 0.5% to 2%. The flat fixed rate starts from Rs. 3500 and the maximum ceiling is Rs.5500. Some banks do not charge any processing fee.
- There are also option of loans that allow part payment or zero foreclosure charges.
- There is an eligibility checker available free on Letzbank’s portal. You can enter basic details requested in the system to arrive at the loan amount you are eligible for.
- Letzbank also has Experian powered credit score calculator which you can avail absolutely free of charge.
- A complete guide is also available on the portal which gives you valuable and practical tips on improving your credit score.
We know how difficult it is to negotiate the city roads. A reliable companion in form of a car can make that journey to and from office a pleasurable one. Just put on some music, crank up the Air conditioning and get rejuvenated as you get back to your loved ones. If a used car is what you have picked, then we are here to help you get it because dreams and comfortable drives should not be kept waiting!