Here is latest Banking sector news on How to Get Car loans for Used Old Cars from Banks and Non-Banking Firms in India
A cars loan to purchase old or second hand cars is not familiar in last 5 years back.
Due to increased middle class family numbers in the country and increased income to the middle class families, many banks and non-banking finance institutes are planning to car loans to expand the customer services.
New latest cars costs high. Many people are not able to buy latest model cars with own cash as cash and carry. So many of are showing interest to buy cars with the help of available car loans from nearest transactioning branch banks and financing firms.
Nowadays many banks and non-banking institutions are offering car loans up to 60 to 75% on old or used cars.
When we are buying a new car, many banks are not applying any conditions for new car loans. They consider mainly loan applicant income details only.
Whereas for old cars, the considerable details are car manufacture company, model, manufactured year, loaning years, loan applicant credit history etc…
Here is another most important point is loan period and loaning car age. The loaning car age and loan period should not be exceed at least 7 years.
For example, if car age (car model manufactured year) is 2 years, the loan period should be within 5 years.
If car age is 3 years, the loan period should be within 4 years.
If car age is 4 years, the loan period should be within 3 years.
How do we get car loans for desired used car or old car?
When we are applying to car loans for used cars or old cars or second hand cars, the loaning firms send a person to finalize the loaning amount according to car model, manufactured year, kilometers reading…etc…All these factors decide the loaning amount.
Sometimes based on existing relationships with banking firms we can get 80 to 90% loans. These baking and non-banking financial firms are maintaining personal credit score for loan history regularly.
Some banks have agreements with local car dealers about loaning amount. If we take loans from those dealers, we can get up to 80 to 90 % of loans.
Here is another important point to consider is loan interest rates. Based on credit score and loan history the loan interest rates also get change.
Generally for old used cars the interest rate is 2 to 3% is high than normal interest rates.
Banking loan interest rates are somewhat lesser than non-banking financial firms.
Apply loan for used car……
Get loans to own a car……
Drive safely with car……
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