Whether it is a question of convenience or luxury, everyone deserves to have a hassle-free journey towards their ambitions. Then why not to have a car, better if it’s a used car. It would suit your budget, save your time, reduce your cost, and enhance your pleasure. Now, This time is for looking for the most appropriate second-hand car loan.
With more than 133 years of legacy and unbreakable trust of customers, Muthoot Fincorp has always availed the most convenient and affordable home loans, auto loans, gold loans, startup loans, and everything you need.
Are you wondering about used car loan financing? Here are some coolest tips and tricks to select the right used car loan without any doubts.
- Interest Rate Comparison
Are you ready to have a sorted and manageable second-hand car loan? The foremost tip for used car loan financing is to compare and decide the best interest rates. Generally, used cars have a higher interest rate and lower cost than new cars.
Approximately 10-17% interest rate range is available for a second-hand car loan. First, compare it with personal loan interest ranging between 10.5-22%. Choose wisely the loan type, most suitable loan scheme, loan plans, and select the interest rate at Muthoot Fincorp for easy repayment.
- Short Tenure Selection Criteria
As stated above that used cars have a higher interest rate than new cars, so paying these high-interest rates for the long term might become a drawback for you. At Muthoot Fincorp,12 to 60 months tenure are available for repayment.
Try to choose the one which is within 3year tenure, so that less payment in the form of interest can be paid. However, also keep in mind your prepayment charges, processing fee, financial status, and repayment capacity before choosing a short tenure.
- Loan Amount selection
Before taking a loan, what matters the most is the amount of loan you are looking for. A high loan amount may lead to high-interest rate repayment for a long tenure. Also, keep in mind the brand and quality of used car you want to approach to select an affordable loan amount from NBFC and at last make your dreams happen!
Usually, high-end cars have higher loan amount demand owing to their high maintenance cost. So, try not to have a huge loan amount to escape from long term stress. Muthoot Fincorp provides Rs.50,000 to Rs. 10 lakh auto loans for handed-down cars.
- Constructing Bigger Down Payment
What will trigger you the most during a loan tenure? EMIs. A down payment is the initial amount paid to NBFC or bank when the required asset is bought on credit. Paying already a more significant down payment at first would simplify and manage your EMI payments.
What constructs a manageable and beneficial EMI in a used car loan is a more significant down payment. It eases and balances the high-interest rates which you are going to face in used car finance. So, save yourself from more extended period EMI and their high charges.
- Learn Loan Calculator Vitality
The loan calculator is a quick and commendable tool for calculating precise EMI (Equated Monthly Installments) solutions. Just enter the essential details like loan amount, interest rate, and loan tenure to achieve quick and accurate EMI calculation.
The loan calculator helps to determine proper financial planning, personal loan eligibility, and repayment probability. It considers all the essential and relevant factors for a sorted loan and then evaluates the best output EMI. So, always use a loan calculator before approaching a second-hand car loan.
While considering a used car loan first choose an NBFC which provides hassle-free documentation, simplified repayment modes, low-interest rates, fascinating profitable schemes, and quick loan approval. All these features are available at the leader of NBFCs Muthoot Fincorp.
Select the most appropriate loan by selecting short tenure, more significant down payment, affordable loan amount, low-interest rate, and wise use of loan calculator. Considering all these factors, before applying, would reward you with the most convenient and profitable used car loan. Just choose the right loan for the right car and get ready to achieve your needs and beautiful aspirations very soon!