Several car owners upgrade their vehicles periodically for various reasons, such as to purchase a high-end model or prevent maintenance costs. As a result, the market for pre-owned vehicles has increased at a significant rate. Used cars provide good value for their prices, which is why many individuals opt for these cars.
In addition to a wide range of used cars to choose from, availing of credit facilities to fund the purchase is easier. Most lenders in India offer attractive deals to encourage individuals for buying used cars on loans. Such facilities are available for all types of vehicles, such as hatchbacks, small utility vehicles (SUVs), and luxury cars. Furthermore, advanced technology makes it faster and easier to apply for such loans.
Although most financial institutions offer loans, availing of the credit facility from a reliable and reputed lender like Tata Capital is advisable. Here are four reasons opt for a Tata Capital car loan to fund your used car purchase.
1. Competitive rates of interest
Compared to loans offered for new cars, the rate of interest on loans for used cars is higher. However, Tata Capital offers pre-owned auto loans at competitive rates of interest. This helps to reduce the Equated Monthly Installment (EMI) payable on the loan. With a lower rate of interest, borrowers may not only reduce their EMIs but also save a significant amount of money over the loan tenure.
2. Higher loan amount
Generally, when individuals apply for used car loans, they may often need to make a down payment of as much as 20% of the car’s value. In comparison, Tata Capital offers a higher loan amount, which may be up to 90% of the car’s value. This reduces the initial amount borrowers need to pay from their personal funds.
3. Longer loan tenure
Tata Capital car loan for pre-owned vehicles may be repaid over a longer duration of up to five years. Most other lenders in the country offer such loans for a period of three years. Longer loan tenure ensures borrowers do not face difficulties in paying the EMI.
4. Flexible repayment schedule
Repaying the car loans on time is important to ensure the borrower’s credit score is not negatively impacted. When individuals opt for loans from Tata Capital, they benefit from choosing a flexible repayment schedule as per their financial situation. The financial institution offers different repayment options, such as Step-Up and Step-Down EMI, Bullet Payment, and Balloon Option.
When a person chooses the Step-Up EMI, the amount gradually increases as per his rising income. Under the Step-Down EMI option, the monthly amount decreases every year. The Bullet Payment option allows borrowers to prepay some part of the loan amount at periodic intervals. If an individual chooses a Ballooning Option, he pays a lower EMI with a higher payout in the last month.
Availing of a loan from a reputed lender has several benefits. Institutions like Tata Capital also provide assistance in finding a good pre-owned vehicle from certified dealers. Individuals may also benefit from its partnerships with several car dealers.