Planning to Take a Pre-owned Car Loan? 7 Points That You Should Keep in Mind

 

A pre owned or a used car loan is a handy solution that gives you a considerable amount to help you buy a used car. 

Since the used car loan is unsecured, you don’t need to pledge any collateral to get the loan approval. 

It is your credit score, repayment and employment record that are taken into consideration at the time of processing of the loan. 

Before you apply, you should keep a few points in your mind to approach and manage it best. Read on!

Must Read: Want to Buy a Second Hand Car During Lockdown? A Few Points You Need to Know About

1. Loan amount 

It is the first thing to decide. You should have an idea of the amount that will be enough to help you buy a used car. You should try to avail a small loan amount as you will need to repay it. 

2. Interest rate

The used car loan comes with a slightly higher rate of interest. Thus, check it beforehand and know the exact interest rate amount that you will pay. The loan EMI calculator can help you know about that. 

3. Repayment period 

Check the repayment period of the loan so that you can plan how you can repay. Leading lenders let you repay the loan over 60 months. 

4. EMI 

You should know about the EMI amount that you will pay over the tenure. To know an exact amount, you can use the personal loan EMI calculator and be confident. 

5. Prepayment 

You should also check if the prepayment option is available for the used car loan. This way, you can reduce the EMI and interest amount over the tenure. Also, check if there is any charge for making prepayments. 

6. Approval time of the loan 

Used car loans from leading lenders can be approved within seconds of your application if you are eligible. Thus, you should check the same before applying for it. 

7. Disbursal time 

You should check out the time that your lender will take to disburse the loan amount into your bank account. This way, you can access the money to purchase a used car fast. Leading creditors take about 24 hours to credit the amount into your bank account. 

By considering these vital aspects, you can approach the used car loan with confidence.

Must Read: Keep These Point In Mind While Availing Pre-Owned Car Loan