Of course when you have no reason to count your pennies and buy used cars, you won’t. But for many of us, it makes sense to go for a used vehicle (which doesn’t mean expensive vintage cars); we are talking about light motor vehicles. Not only will it save you loads, but it will be the end of most of your transportation woes, minus traffic.
Many lenders are quite reluctant to offer secured loans to finance preowned vehicles because unlike other secured loans like housing loan or gold loans, the value of car undergoes steep depreciation every year. This poses more risk for the lender and quite a few applications for secondhand car loans get rejected, which is the reason why people prefer taking out personal loans to buy used cars.
Here are the prerequisites for getting a used car loan from online lenders:
- Qbera Used Car Loan is available for anyone who wishes to become a car or jeep owner.
- We strongly advise you to choose one not older than 5 years even though it is not a rule.
- You can avail secondhand car loan for up to Rs. 5 lacs, if you are a salaried employee working in government or private organization.
- The loan applicant must be of at least age 23 when applying because most alternative lenders insist on an employment history of more than 2 years.
- The maximum tenure allowed for auto loans for secondhand car is 36 months.
- The amount approved will depend on your income and debt-to- income ratio, which is how the lender assess your repayment capacity and calculate the EMI.
- Since you are taking a personal loan, there shall be no need for hypothecation of car.
- You do not need to pledge any valuable asset you own or produce a guarantor to get your loan approved. Your current CIBIL Score and creditworthiness can do the job.
- You are allowed to prepay full or part of the outstanding amount only after 6 months. You could be charged a nominal amount for that.
- A processing charge of 1 to 2 percentage will be levied to take the loan application forward.