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27 Oct
  • Editorial Team
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Buying a car is still a dream for many of us in India. In our country cars have traditionally been a status symbol, buying your own car can be one of life's most rewarding experiences. However, it may not be in everyone's budget. The solution, pre-owned cars.

More Indians are now buying pre-owned cars than a decade ago. A lot many people choose to buy a pre-owned car on loans as it helps in reducing the financial pressure.

For those of you who are thinking of buying a pre-owned car and considering the loan option, here is an easy guide that covers the basics for you.

A few points to keep in mind while taking a pre-owned / used car loans:

  1. Interest rate: Pre-owned Car loan interest rates vary from one financier to the other. It's a good idea to negotiate and try to get the best possible deal.

  2. Processing fees and documentation: Banks may or may not charge loan processing fees that eventually adds to your loan repayment. Documentation is very simple, such as income proof, address proof, residence proof and two photographs are all that is needed.

  3. Eligibility - Eligibility criteria for availing a pre-owned car loan includes being at least 18 years old with a stable job or business with a minimum vintage of 6 months to a year.

  4. Loan processing time - Getting a car loan is fairly easy and it takes about 2-3 days to process.

  5. Vehicle age - Ensure that the vehicle is not too old or you will have to incur higher maintenance costs. Financers aren't too keen to lend money for cars older than a few years.

Scroll down and get more information on pre-owned car financing.

Click below to view more of our useful infographics:

Did You Know

Disbursement

The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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