Used Car Loan:

To enable more and more people to own vehicles, banks and other FIs are now coming up with loan schemes that are aimed at widening the options. These are in the form of Used Car Loan schemes that are offered on Used Car Loan  rate to those meet with the set of Used Car Loan eligibility norms as specified on official website of various banks, and other kinds of Used Car Loan review analysis.

• This is also a term loan that is offered to enable borrowers to acquire used cars
• Loan is offered so as to enable borrowers to meet with up to 80% of the cost of the used car
• It is offered at easy Used Car loan interest rates as pet the innumerable online and offline Used Car Loan review articles.
• All major banks offer loans to purchase used cars, which are of a specified age and make.
• Above set of conditions usually differs with each bank.
• Many banks also give preferential treatment to their existing customers, in terms of relaxation of Used Car Loan  rate, as well as in the pre-specified Used Car loan eligibility norms.

Used Car Loan Interest Rates:

• Most banks offer loan schemes for used cars, at an easy Used Car Loan  rate, that is determined as per the base rate.
• Base rate differs by some basis points per bank.
• Very often, the Used Car loan interest rates are compounded quarterly.

Used Car Loan Eligibility Norms:

As per the Used Car Loan review, following are persons and institutions eligible for loan as per Used Car loan eligibility norms:

• Permanent and salaried employees of:

a)    PSUs

b)    Reputed educational institutions

c)    Government organizations (state/central); quasi-government

d)    Reputed companies and firms

e)    Private companies

• Non-salaried class:

a)    Self-employed businessmen and traders

b)    Professionals

• Pensioners
• Existing bank employees
• Existing bank customers

Quantum Of Used Car Loan:

Loan amount permissible is determined as per the amount of net take home pay or income of the borrower who is eligible as per the Used Car loan eligibility norms:

• The usual range of permissible amount is 3 times of net take home income in case of salaried class and up to 5 or 6 times, in case of non-salaried borrowers.
• A margin is usually considered before the disbursement of loan.  

Procedure To Be Followed While Applying For Used Car Loan And Documents:

• If you are an eligible borrower as per the Used Car loan eligibility norms, then you may apply for scheme. The usual set of documents that are required to be submitted by every bank is:

a)    Proof of Identity

b)    Income Proof

c)    Residential Proof

d)    Two latest passport sized photographs.

e)    Bank statements of last 6 months, preferably.

• A one-time processing fee is charged at the time of loan-disbursement. The general range, as per the Used Car Loan review, is 2% on loan amount or Rs.4000 whichever is lower.
• This fee is independent of the Used Car Loan  rate levied.

Tenure:

Generally, as per the Used Car Loan review, the loan repayment tenure is of the duration that spans a time of about 1 year to about 5 years, at the end of which borrower should ensure that entire amount of loan is repaid, including the interest at Used Car loan interest rates.

Repayment Of Used Car Loan:

Almost all major banks and lending institutions prefer these modes of repayment by borrowers:

• Direct deduction from salary account held and maintained with bank, if check-off facility has been provided
• PDCs of amounts equal to that of the EMIs, if above check-off facility has not been provided.
• EMI amount comprises of interest at Used Car Loan  rate on loan principal and principal amount itself.

Pre-Closure Of Used Car Loan:

• Many banks encourage prepayment of loan and there are generally no prepayment charges.
• However, some banks do levy a pre-closure fee, in case of a take-over by any other bank or NBFC
• Above charge is independent of the Used Car loan interest rates

Delay In Payment Of Emis Of Used Car Loan:

In case if late payment of the amount of EMI, the general charge is equivalent to = 2% to 4% on amount of loan that is left outstanding.