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If you can not arrange the amount of money that is required to buy a new car then it will not be a bad idea to buy a used car, as the are available in the market in pretty good conditions and cheap prices. Often it is seen that individuals go for used cars as they find the same model of new cars beyond their financial reach. The availability of attractive used car loans have even proliferated the sale of used cars in India. Some financing institutions even provide very low used car loan rates. For a used car loan too, you may have to give a margin money to the loan provider.
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However it must be noted that the used car loans usually come with higher rate of interest. Used car loans may also include insurance premiums, vehicle registration charges and even one time road tax.
Getting a Used Car Loan From SBI
You can avail used car loans from the various PSU banks in India also. Criteria for getting a used car loan from SBI (the largest bank in India) are as follows: Individuals seeking used car loan must be between 21-65 years of age. The net annual income of the individual must not be lesser then INR 100,000. Used car loans are offered for the cars which are not older than 5 yrs from their date of manufacturing.Margin amount of about 15% of the total value of the on road car price has to be payed upfront. Maximum Repayment period varies between 60 to 84 months for self employed and salaried persons respectively. Interest levied on the used car loans varies between 12.75% to 13% per annum.
Apart from the PSU banks you can even get used car loans from various private banking organizations. To borrow a used car loan the customer has to deposit certain documents to the lender, which are: Last 6 months bank account statement, residence proof, passport size photographs, bankers certificate identifying signature of the borrower, Income Tax return file for the last 2 years for salaried individuals and 3 years for self employed and professionals, latest salary slip of the salaried individuals. It must be noted that the documents required may vary from bank to bank.
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