Body: Buying a car is like a dream coming true for many. Unfortunately, even with the help of financial aid, buying a brand-new car is not a pragmatic option for many dreamers. A more realistic choice comes in the form of pre-owned cars. With a dramatic shift in choice to a more affordable car purchase option, the personal loan market now witnesses an exponential surge in second-hand car loans disbursement. Financial institutions are now offering dedicated credit card facilities, thereby streamlining the process of low interest personal loans on pre-owned car financing.
Nonetheless, the borrowers need to be extra careful when applying for a second-hand car loan. Only an informed buyer can make an informed borrowing decision.
Choose Your Budget
Decide your budget according to the model you want to purchase as well as your ability of repayment. Accurate assessment will help you calculate the exact amount of down payment required to buy a pre-owned car. Consider your monthly income, expenses, future liabilities and savings when setting the upper cap on your budget.
Decide Tenor
Lenders usually choose a loan repayment tenor that ranges up to 60 months. Both short-term and long-term repayment facilities on second-hand car loans have some advantages and disadvantages. Whereas short-term tenor can strain you financially, long-time tenor will increase your overall loan burden. Therefore, choosing an ideal tenor is really important.
EMI
When you take out a loan, repayment becomes your financial liability. EMI is the monthly instalment that you need to pay back to the lender during the tenor. Use an EMI calculator, which you can find on your lender’s online portal, for the correct estimate of how much you need to repay.
Documentation
Availing second-hand car loans requires you to submit some necessary documents. The lender evaluates these documents to decide if you qualify for low interest personal loans. Documents include your ID proof, address proof, contact information, employment status etc.
Bajaj Finserv provides necessary funding to support your purchase of a pre-owned car. They offer financial help in the form of credit card, home décor loan, used car purchase loan and many more. Bajaj Finserv assures quick approval, low interest rate and flexi repayment.
