Everyone today does not go for buying a new car, there are most of them who instead of buying a new car wish to purchase a used car. The basic reason behind it is a car is a depreciating asset whose value keeps on decreasing with time. Demand for used car loan is increasing day by day as Banks provide some special relief and features on used car loan. This loan is for those people who wish to buy a second hand car.
Following are some of the features of used car loan:
- These loans have some features that are quite beneficiary for the client and are different as compared to other loans.
- The price of the car you have planned to buying is the on road price of a particular car.
- The loan offered to the client is a 60% on road price of the car; it may even extend to 85% in some exceptional cases.
- The maximum purchase time of the car should be three years till date it may even be increased to 5 years in some cases.
- The processing fee charged on every car loan is 0.5%.
- The duration allotted for the repayment of the used car loan is 3 to five years that are non-extendable in any case.
- The actual EMI which the customer have to pay in used car loan is comparatively very less as compared to that of other loans.
- Rate of interest charged on every loan will be as per the policies of a particular lending institution.
- In any case, the down payment should not be less than 15%.
- No upfront installment is to be paid in used car loans.
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