Just like having a dream home, many people aspire to have a car. But not everyone has the required funds to bring home a brand new car. It is where a second hand car works well for them.
If you want to buy a used car and have some funds shortage, you can always rely on a second-hand car loan.
A second-hand car loan can help you access a large amount to help you buy your car.
Depending on the lender’s policies and creditworthiness, you may be able to access up to Rs.25 lakh. But you need to meet the lender’s eligibility norms and also consider a few factors.
Read on and know more!
- Ensure to maintain a robust CIBIL score
Since a second-hand car loan is unsecured, lenders want to ensure that the loan applicant is creditworthy enough to repay the loan on time. To assess the same, they check out your CIBIL score as the first thing while processing the application. If it is higher, a lender may approve your loan application. A credit score of 750 or more is considered good by lenders. You can maintain a strong credit score by repaying your loan and other EMIs on time, every time! A strong credit score will also help you avail of a low interest personal loan. In turn, it can help you save big on EMI repayments.
- Compare all active offers in the market
While applying for a second-hand car loan, you may come across many offers – making you confused! In this case, the best thing would be to compare all available pre owned car loan offers on a third-party website. This way, you will be able to pick a deal that best matches your needs and budget.
- Be well informed about all costs
When you have a loan to apply for, there could be different costs associated with it. It could be a processing fee, late payment, default, prepayment and foreclosure charges. Hence, before you apply for the pre owned car loan, get an idea about all charges of a lender. It will help you get a clear estimate of what to pay. In turn, it can also assist you in managing your finances prudently.
- Apply for the right amount
The next thing before applying for a second-hand car loan is to know the correct loan amount. You can do that by using the personal loan eligibility calculator. The tool lets you know about the exact amount that your income can support. If you think you can manage the loan EMIs convincingly, you can either increase or decrease the loan amount. A loan eligibility calculator is a free tool available on a lender’s website 24×7.
- Know if you can repay the loan easily
Once you avail of the second-hand car loan, you will need to repay it over a tenor. Hence, it would be good to know about an exact EMI amount beforehand. It can help you plan your finances and make way for the EMI from your outlays. You can do that by using the loan EMI calculator. The tool is available for free on your preferred lender’s platform for free.
If you can consider the discussed pointers, it will be easier for you to approach and manage the pre owned car loan.
Bajaj Finserv lets you access pre-approved offers on personal loans, home loans and more. It is to simplify the processing of the loan.
You can check out your pre-approved loan offers today after sharing your primary details, such as your name and mobile number.