Coimbatore is one of the major industrial hubs in Tamilnadu. The city has witnessed tremendous growth in the healthcare, education, and manufacturing sectors. With a pleasant climate and greenery, this city is one of the popular places to live in Tamilnadu. And in a busy city like Coimbatore, owning a car has become necessary to travel daily. But the cost of a new car and maintenance can bring a financial burden. So instead of buying a new car, you can opt for a used car for daily transportation.
Why Buying A Used Car Is Better Than A New Car?
Here are a few reasons why you should buy a used car instead of a brand new one:
- Low price: Buying a used car is often a good option because of the low cost. With the amount of money you have saved for buying a new car, you can buy a better model if you choose to buy a used car for that same amount. Moreover, if you want a specific car model, you can get it at a lower price.
- Well-maintained cars from certified dealers: Certified dealers check the quality of the cars and ensure they are in good condition before they sell them. So you have to research and then buy your car before buying.
- Less worries about damaging it: When you drive a used car, you don’t have to worry about it. So you can drive it more peacefully than you would drive a new car.
- No need to pay extra charges: New cars have a lot of extra charges such as handling fees, RTO charge, insurance fees, warranty fee, and miscellaneous other charges. But when it comes to used cars, you only have to pay the price, especially if the car has a warranty and is insured.
Used Car Loan To Finance Your Dreams
Many banks and financial institutions offer used car loans at affordable interest rates. So if you have decided to buy a used car in Coimbatore, you can easily apply for this loan and get the car of your dreams.
Eligibility Criteria For A Used Car loan
You should always check the eligibility criteria before availing of a used car loan. And these criteria may vary from lender to lender. So here are the eligibility criteria required for a used car loan:
- The loan applicant must be between the ages of 21 to 65 years.
- They must have a credit score above 750.
- They must be either salaried or a self-employed individual.
- The applicant must have two years of work experience in the same field.
- The applicant must have a minimum monthly income of Rs.18,000.
Documents Required For A Used Car Loan
- Identity proof: Aadhar card, PAN card, passport, or voter ID
- Income proof: 3 months’ salary slips, 3-6 months’ bank statements, or IT returns
- Proof of residence: Passport or utility bills
- Age proof: Driving license, 10th, and 12th certificate, or passport
Features of a used car loan
- Processing fee: Banks often charge about 2% of the entire loan amount, which is usually deducted from the principal loan amount when the money is credited to your account.
- Loan tenure: Banks offer repayment tenure of 1 to 7 years, depending on the age of the car. And few banks insist that the age of the car must not be more than 8 to 10 years at the end of the tenure.
- Interest rate: The interest rate on used car loans varies from one lender to another. It usually depends on the age of the car. Moreover, the interest rate of a used car loan is generally higher than a new car loan due to higher maintenance costs, insurance costs, and spare parts of older cars.
How To Apply For A Used Car Loan in Coimbatore?
You can apply for a used car loan either online or offline.
Online: Applying for a loan online is simple.
- Visit the websites of various banks and NBFCs and compare the features offered for used car loans.
- Make a note of the interest rate, the loan tenure, the processing fee, and the prepayment charges.
- Compare the offers of different lenders and choose the one that suits your requirements.
- After choosing your lender, download the loan application form from the lender’s official website, fill it out, and submit it along with the required documents.
- An agent of the bank will contact you and move the application forward.
Offline: Applying offline for a loan can be a bit tedious compared to applying online as you have to go to a bank physically. But the good thing is you can ask the lender to clarify and explain the features when you have doubts regarding applying for the loan. But before you apply, visit the branches of a few banks and NBFCs and compare their loan offers before choosing the lender. Once you choose the bank, you can apply by filling out the loan application form. Do submit the form along with a copy of all the required documents. Then a representative from the bank will take the application forward.
Also Read: Find the Best Used Car Loan Interest Rates with this Quick and Easy Guide
Compare Used Car Loans Online
|Lender||Loan Amount||Interest Rate||Loan Tenure||Processing Fee|
|HDFC Bank||Up to 85% of the value of the used car||11.50% to 17.50% p.a.||1-7 years (the age of the car should not exceed 10 years by the end of the loan tenure)||Rs.5,000 or 2% of the used car loan amount, whichever is lower|
|ICICI Bank||Up to 80% of the value of the car||10% to 17.65% p.a.||2-3 years||Rs.6,000 or 2% of the used car loan amount, whichever is lower|
|TVS Credit Services||Up to 85% of the value of the used car||13.1% to 15% p.a.||1-5 years||Rs.999 + GST|
|State Bank of India||Up to 2.5 times your net annual income||12.60% p.a.||1-5 years||0.5% of the used car loan amount + GST (minimum Rs.450 + GST, maximum Rs.9,100 +GST)|
|Sundaram Finance||Up to 85% of the value of the used car||12% to 14% p.a.||1-3 years||Rs.2,500 (a one-time processing fee)|
A used car loan can benefit you in many ways and is also a cost-efficient option compared to buying a new car. However, before you apply for this loan, do thorough research and compare the offers provided by various lenders and then choose the loan that suits you the best. And last but not least, once you get the loan, make payments on time to avoid affecting your credit score.