With the increasing disposable income, the average time spent keeping a car in India has been reduced. Individuals change their cars in a relatively short span. Therefore, the quality of used cars available in the market is excellent. As a result, used car buyers can enjoy a relatively newer and well-maintained car with second-hand car loans. You can finance up to 10-year-old cars against minimal documentation and digital procedure with RC Transfer support.
Every year, five million-plus pre-owned/second-hand cars are sold in India. It is growing day by day. Considering benefits like same-day delivery, easily used car finance availability, and paperless process to finance a car, most Indians, especially the new generation prefer used cars. Lending institutions provide loans for a wide range of used cars, including sedans, hatchbacks, MUVs, SUVs, and others.
The Used Car Loan Market can be categorized based on financer, car type, territory, loan term, amount, etc.
In terms of financiers, the Used Car Loan Market in India is primarily segmented into Banks and NBFCs. NBFCs have a significant client base due to their better customer service and loans at competitive rates. One of the dominating factors in the market is their existence in non-metro territories also. NBFCs accounted for a high market share during the previous year. They offer a diverse mix of credit schemes to serve more car buyers. You can get loans for used cars based on your specific needs.
Some of the leading players in the Used Car Loan Market in India are enumerated below:
|Lender||Interest Rates||Processing Fee||Maximum Tenure|
|Muthoot Capital||Starts from 8.5%||Negligible||5 Years|
|HDFC Bank||Starts from 13.75%||1%||5-7 Years|
|Punjab National Bank||Starts from 11%||0.25%||5 Years|
|Axis Bank||Starts from 13.25%||1%||4 Years|
|AU Bank||Starts from 14%||2%||5 Years|
What the Top Used Car Loan Provider – Muthoot Capital Offers
Reputed lending institutions like Muthoot Capital can help individuals look for their dream car. But, many find it a costly affair, especially during the current economic situation where the new car prices are rising. Used car loans can go up to 10 Lakhs. Let us elaborate on factors that make Muthoot Capital Used Car Loans the preference of most borrowers.
1. Muthoot Capital used car loans can offer 100% finance for specific car models.
A loan applicant can get 95% of the Insurance Declared Value (IDV) of a pre-owned car. If it is a model covered under the specific schemes of the lender, it can be financed with 100% funding. Also, it depends on the age, model, and condition of the car you choose. Your credit score will also determine the used car loan amount.
2. Muthoot Capital used car loan interest rates are low comparatively
Individuals can get funds to purchase a used car at a low-interest rate with trusted lending institutions. Muthoot Capital used car loans are available at as low as 8.50%, depending on the borrower’s eligibility. Pre-owned car loan interest rate is determined based on the model, the age of the car that you want to buy, your credit score, your preferable loan tenure, etc.
An individual who has maintained a higher credit score can enjoy a lower interest rate for a used car loan. A shorter-term loan carries a lower interest rate than a longer-term loan. You can prefer a short-term loan if you can afford EMIs without affecting your monthly budget. Also, a less-used car will carry a low pre owned car loan interest rate as compared to a three or four-year-old car.
3. Finance a used car under the no income base option and low down payment
Muthoot Capital allows its customers to apply for a used car loan under no income base as well, provided they meet the defined eligibility criteria. A borrower can finance a used car against a low down payment with Muthoot.
4. Manage EMIs with flexible loan tenure options
Flexible repayment tenure allows you to fit your loan EMIs in your budget without any burden on your finances. Loan repayment tenure ranges between 12 and 60 months. Ready-to-use tools like a used car loan calculator can help you to check the EMI amount and decide on the loan tenure as per your convenience for easy EMIs.
Thus, if you aspire to buy a dream car and need to finance it, you can finance it with top lenders for it to fit into your budget against minimal documentation.