Should You Go For a Used Car Loan? Here’s All You Need to Know

Are you looking to own a used car and sort out your travel woes? If you are short of some money while doing that, then you can easily avail the facility of used car loans.

If you want to know more about the used car loan facility, along with what to consider while doing that, then going through this post may help you.

What is a used car loan?

As the name suggests, a used car loan is a unique financial facility that can provide you with funds to buy a used car. A used car loan is an extension of the personal loan, which has been designed to meet the needs of buying a used car.

If you are eligible, then you can get an amount of up to Rs.25 lakh spread over a loan tenor ranging up to 60 months. You can also settle for lower personal loan interest rates if you have a robust CIBIL score and employment history.

Consider these things before applying for a used car loan

However, before you apply for used car loan assistance, you will need to consider some factors. It will help you approach your loan application with confidence and without the risks of loan rejection by a lender.

  • Maintain a robust CIBIL history

The first thing that your lender will assess while processing your loan application is your CIBIL score. It is a 3-digit number that shows your creditworthiness to your lender if you are eligible for a loan or not. It showcases if you have paid your dues for existing loan EMIs and credit card outstanding. You should ensure to maintain a credit score of 750 and more so that you used car loan application gets approved at a lower rate of interest.

  • Compare all offers available in the market

The next thing is checking out all the available offers in the market. It can help you pick only the best deals out of the rest that may match your repayment capacity easily. To do that, you have to land on a third-party website showcasing all existing offers. Based on the list, you can choose the best available deals.

  • Assess all cost of managing the used car loan

While borrowing a used car finance facility, there can be numerous costs during the loan tenor. You may come across costs such as prepayment fees, processing charges, late payment fees and more. Before applying for a used car loan or any other, you should assess all the cost involved in it. This way, you won’t be shocked to pay if you delay payment and much more.

  • Know how much is too much

Even if you are eligible for a higher loan amount, you should apply only for an amount that is needed and not hampers your budget. The used car loan facility lets you borrow up to Rs.25 lakh, and you should apply for an amount that’s needed. It will help you repay the loan quickly and avoid all debt traps.

By following the discussed used car loan aspects, you will be able to manage your loan account without issues. You can start applying for it online if you are ready.

Bajaj Finserv comes with pre-approved offers on financial products such as personal loans, home loans, EMI finance and more. It can simplify your loan procedures and make it less time-consuming. You will need to share your basic details such as your name and mobile number to explore your customized pre-approved loan deals today.