Mumbai is the largest metropolitan city of India. Cars are most comfortable mode of travelling owing to the fact that you can avoid extreme weather and temperature conditions. Buying a new car can be an expensive affair, whereas buying a used car can be cheaper solution to meet your need. The other advantages if you purchase a used car apart from the low prices of the car are lower registration charges, low insurance charges and also readily available loan options for anyone who wants to purchase Used Cars in Mumbai. Enlisted below are certain Used Car Loan features that you should get acquainted with before you apply for the used Car Loan:
- Loan Amount– You can purchase a used car for loan amount upto Rs.12,00,00,000/-. The finance on the used car is offered starting from 75% upto 90% of the total cost of the vehicle and you will have to make a down payment of 25% to 10%. Used car finance is based on the evaluation of the car. Therefore, certain banks and non banking finance organizations have direct tie-up with used car dealers who evaluate the used car and ascertain the used car prices, the bank offers finance based on the prices given by the evaluator. The loan that is granted to anyone depends on the credit score of the borrower which means your entire re-payment history is taken into account before approving your used car loan.
- Rate of Interest– The rate of interest charged by the banks to borrow a used car loan is slightly on the higher side as compared to a brand new car loan. The interest rates charged on purchase of used car fall in the range of 13% to 17.75% per annum. You need to see at what rate of interest the bank is lending you the loan before you finally sign up your used car loan deal – as it may save you a lot of money. There is no point you buy a used car and spend more towards the rate of interest and make buying a used car as expensive as buying a new car.
- Loan Tenure– Banks offer used car loans for a loan tenure ranging from 60 to 84 months. Shorter the loan tenure higher is the EMI and longer the loan tenure lower is the EMI. Opting for a longer tenure can enable you to re-pay the loan in a comfortable manner without hampering your monthly budget.
- Processing Fee– Banks charge Nil to 2% as one time processing fee by the borrower for processing the loan. Opting for banks that offer NIL processing fee will serve as a bonus as you will be able to borrow without paying anything from your pocket. Look for banks that offer loans at NIL processing fees.
- Fore-Closure Charges– Fore-closure charge is a charge levied on the outstanding amount if you wish to close your loan account in the middle of the agreed loan tenure. There are certain banks that charge fore-closure charges when you close the loan account however there are other banks that do not charge anything if you wish to close your loan account at any point of time during your loan tenure. Usual rates charged at the time of fore-closure are 5% to 10% on the outstanding loan amount.
Apply for Used Car Loans in Mumbai @ Letzbank!
Letzbank offers you a platform where you can view all the used car loan deals available across the country. Here’s how you can apply for used car loan sitting where you are:
- Check all the used car loan deals available at Letzbank in a comparative format; compare all the features of the deal; shortlist your car loan deal. Use EMI Calculator to know your monthly EMI by entering the loan amount, interest rate and loan tenure.
- Register your-self and send your applications online.
- Avail a waiver on Service Fee for online applications.