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 a used car loan is increasing day by day as Banks provide some special relief and features on a 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 buy is the on road price of a particular car.
- The loan offered to the client is 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 to 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 has 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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