Driving your vehicle is an amazing experience. To own a vehicle also is a matter of prestige for every Indian. With your own vehicle, you can travel anywhere you wish to go. You don’t have to wait for the local buses or trains that can be delayed. You can zoom away to any destination of your choice at any given time. Hence owning a car brings in a lot of convenience to your life.
When it comes to purchasing a car, the funds required are a lot. Not many can afford to have so much of funds in their account. Hence they take help from a used car loan in order to afford and purchase the car of their dreams. There are plethoras of banks which offer pre owned car loans to individuals as per their eligibility.
In such a situation, it becomes tough to decide which bank is the best in order to get a loan for your second hand car. Hence to make it easy for you, we have provided you with 2 main factors that can help you get the best used car loan available in the market.
Interest Rates: Everyone checks the interest rates while applying for any kind of a loan. It’s a simple mantra; “Lower Interest Rates means I will pay less”. Hence everyone looks for lower interest rates. There are many banks which compete with each other and hence lower interest rates to attract the right customer to them. Another way you can get lower interest rates is via a higher credit score. In case your score is above 800, you can discuss with the bank to renegotiate on terms and lower the interest rates even more.
Here are some Banks which you can look out for;
| HDFC Bank | 12.50% onward |
| ICICI Bank | 12.50% onward |
| Axis Bank | 15.00% onward |
| Kotak Mahindra Prime | 15.00% onward |
| Capital First | 15.00% onward |
| Hero Fin Corp | 15.00% onward |
| Bajaj Finserv | 15.00% onward |
| Au Small Finance Bank | 16.00% onward |
Better terms and conditions: Not everyone reads the fine print. Just because the bank is providing lower interest rates, doesn’t mean it is a good deal. You must also check the loan application and look for all the terms, hidden charges and terms. After you are aware of the fees, charges and penalties that will be applied during your loan history, you will understand the final fixed EMI which you will need to pay each month. Apart from this, if the bank is providing you with better terms like “EMI holiday”, “no prepayment penalties” etc then you can consider taking a used car loan from that bank.
Hence with these two factors in mind, you can decide the best bank through which you can take a used car loan.
