Important Benefits of Used Car Loans

Piramal Finance’s used car loans have recently grown popular as a result of increased demand in the car sector and the demand for simple credit financing choices. Simply explained, a used car loan is a loan that you may get from several banking firms to buy a used car. The loan sum is set by many factors, including the car’s history, condition, and the lender’s value. The interest rate on a used car loan is set by two factors: your credit score and the value of the car. Your interest rate will be lower if you have a good credit score.

Securing a Piramal Finance used car loan is now a simple process; you may have the loan money sent into your bank account from the comfort of your own home. A used car loan is easy and simple to get. You must determine if you meet the standards for getting a used car loan. Only a few needs must be met in order to be eligible for financing a used car. The Piramal Finance loan is open to salaried workers, self-employed persons, and farmers. At the time you apply, and at the end of the loan term, you must be between the ages of 21 and 65. The minimum net wage should be Rs 15,000, or the net profit must be at least Rs 150,000 each year.

Benefits of a Used Car Loan from Piramal Finance

Getting a used car loan to pay for your dream car is now quite simple. With Piramal Finance’s used car loan, you can benefit from a simple process, faster loan approval, and total freedom. The top five perks of a used car loan are as follows:

• Flexible Repayment Choices

Piramal Finance allows you to determine your loan sum, payback term, and EMI period. In this manner, you can manage your budget and buy a used car when it is most suitable for you.

• Attractive Interest Rates

Because the cost of a used car is less than that of a new one, Piramal Finance offers low-interest car loans for buying a car. The used car interest rate charged by Piramal Finance is highly tempting, which allows you to prepare your budget before finalising the purchase of a used car.

• Fast Approvals

Buying a used car is now quite simple since you can complete the loan process online. The loan approval and payment processes are quite rapid and easy, making the whole loan procedure very simple.

• Simple Paperwork

The paperwork needed to get a used car loan is quite basic and modest, making the paperwork process simple. The paperwork needed for loan requests differs depending on the funder. Valid identity verification, salary proof, property proof, valid address proof, and picture proof are usually required when asking for a used car loan from Piramal Finance.

• Small Down Payment

Some banking firms give 100% funding on used cars, generally known as a loan on used cars with no down payment. You are likely to get the whole loan amount if the value of the used car is less than the loan sum.

How to Pick a Used Car Loan?

Here are a few elements to check while looking for a used car loan:

• Interest Rates

Like any other loan, one of the most vital aspects of a used car loan is the interest rate. Interest rates on used car loans are higher than those on new cars and may vary from 10 to 17 percent. In contrast, personal loans might have interest rates ranging from 10.5 percent to 22 percent. Further, personal loans assist you in financing the total cost of the vehicle. When looking for a used car loan, compare the interest rates given by Piramal Finance. Before making a selection, compare it to the interest rates on personal loans.

• Picking the Loan Sum

When looking for a car, consider how much you would have spent on a new vehicle and then seek similar types of used cars. Keep your loan sum modest and refrain from extending your budget to get a high-end car whose used price is fair. Note that high-end cars need more upkeep. As a result, it is vital to avoid taking out a large used car loan.

• Make a Greater Down Payment

After deciding on the loan sum, it is vital to make a sizable down payment. Used car loans can offer you credit for up to 85% of the automobile’s purchase price. However, keep in mind that used car loan rates of interest are on the high end. As a result, you will wind up paying more interest. In addition, a used car will be less costly than a new car. Make as large a down payment as possible when applying for a used car loan. This will keep your EMIs modest.

• Picking a Tenure

Most used car loans have a maximum duration of 5 years, while certain lenders may offer up to 7 years. Yet, make it a goal not to extend your term too much. Because the interest rate is higher, you will end up paying more in interest on a loan with a longer term. Try to limit your loan term to under 3 years.

• Calculate Your EMI with a Loan Calculator

When getting a Piramal Finance loan, it is vital to figure out the monthly EMI. The EMI outgo must be such that you can pay those payments each month without affecting your budget. You may use a debt calculator for this. Enter your loan sum, duration, and interest rate, as well as the calculator, which will calculate your EMI.

Conclusion

Using a Piramal Finance loan to pay for a used car might present you with a plethora of perks. One of the main perks you will enjoy is a lower car price. A used car will always be less costly than a new one. As a result, your loan’s principal will be reduced. As a consequence, your auto loan interest rate will be lower. Another key advantage of buying a used car with a loan is that you may still benefit from a car loan tax deduction. However, keep in mind that the auto loan tax deduction is only applicable for cars used for business purposes under Section 80E of the Income Tax Act of India.

If you want to know more about used car loan rates, visit Piramal Finance. You may also explore their products and services.